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Jollibee buys Mang Inasal for P3 billion

Well i just missed chicken joy...lol. And since i read some article regarding this one, might as well blog it.











Fastfood giant Jollibee Foods Corp. on Monday said it is buying 70 percent of Mang Inasal Philippines Inc. — a Filipino food chain — for P3 billion.



In a filing with the Philippine Stock Exchange, Jollibee Foods said it would pay Mang Inasal owner Edgar Sia III of Injap Investments Inc. P200 million in downpayment.



Injap will have a 30-percent interest in Mang Inasal, the disclosure read.



The deal will be complete in 30 days, subject to due diligence by Isla Lipana & Co. and law firm Romulo Mabanta Buenaventura Sayoc and De Los Angeles, according to Jollibee Foods.



The purchase of Mang Inasal will add 5 percent to the fastfood giant’s worldwide system sales and 7 percent to its profits, according to Jollibee Foods.



It will also increase Jollibee Foods’ worldwide network of stores by 16 percent.



Since it started in 2003, Mang Inasal has grown to 303 stores with estimated total revenues of P2.6 billion and system-wide sales of P3.8 billion.



Jollibee Foods has 1,953 stores in the Philippines, the United States, China, and other countries.



Source: GMANews.tv



Another good article from Millionaire act:



Today, I would like to start featuring different franchise opportunities available to those who want to pursue an established business. In one of my previous posts, I mentioned that there are four ways of starting a business: to start from scratch, buy an existing business, get a franchise, and to be a distributor.



Getting a franchise is one of the best way if and only if you have the capital. In this first franchise feature, I would like to kick start by featuring my most favorite fast food chain: JOLLIBEE.



One of my most admired entrepreneurs is Tony Tan Caktiong, the owner of Jollibee. He managed to grow Jollibee from two small magnolia ice cream houses to what is now the largest fast food chain in the country. It has now overthrown multinational companies such as McDonalds, KFC, etc. Certainly, the history of Jollibee is one of the most admired success stories I have ever seen.



Here are some of the details for a Jollibee franchise:



First, you might ask how much is the investment needed for a jollibee franchise? The investment needed ranges from P15 million to P30 million (US$312,500 to US$625,000) depending on the size and facilities of your Jollibee store. The size of Jollibee store is dependent on the store model that will be developed in a particular market.



The franchise already includes the construction of the Jollibee store itself, kitchen equipment and facilities, furniture and fixtures, airconditioning system, marketing signage and pre-operating expenses.



With the given capital needed, how much is the return on investment? ROI is definitely dependent on the capability of the franchisee to minimize his operating expenses and to increase its sales. On a personal note, I think that Jollibee has a good return on investment given its brand name. With the right location and additional marketing strategy such as 24/7 operation, I think the P15 million capital can be achieved in a maximum of 5 years.



Does Jollibee provide financing for the franchisee? No, Jollibee does not provide any type of financing. Franchisees must have the source of funds to fund their Jollibee franchise.





How long is the training program? As with any other franchise opportunities, a training program is required for each Jollibee franchisee. The franchisee is required to successfully complete a 3-month full time Basic Operations Training Program (BOTP) at a designed Jollibee training store.



Will Jollibee provide the employees and management team of the franchisee? Jollibee will assist in the recruitment and training of employees and management team of the franchisee. However, this team will be the employees of the Jollibee franchisee and not Jollibee itself.



Can a corporation apply for a franchise? Jollibee prefers individual applicants with a location or site for the store. Upon approval of the franchise, the individual can organize a corporation where he must have clear majority ownership. Personally, I’ve seen some Jollibee stores operating under a corporation. This can clearly be seen in their issuance of receipts.



If you are interested in having a Jollibee franchise, here are some of their franchise requirements:



Filled-up Jollibee application form - You can get this by downloading it here.



Letter on Intent - The letter of intent should contain the exact address of the proposed Jollibee store, exact address of the franchisee and contact details, etc.



Vicinity map of the proposed Jollibee store - This will serve as a guide for Jollibee personnel to conduct and evaluate the feasibility of the location (heavy foot traffic, etc.)



Legal documents certifying ownership of the site - Any legal documents that will provide proof that the site is owned by the franchisee.



Detailed resume or bio-data



The franchisee should mail these documents to Jollibee:



Jollibee Foods Corporation



9/F Jollibee Plaza



#10 F. Ortigas Jr.



Ortigas Center, Pasig City



It will take 2-3 months of of processing upon submission of these requirements. Jollibee will evaluate your franchise proposal and the proposed site for your Jollibee store.





I can really imagine that all Jolllibee franchisees must be really rich. Aside from the huge franchise investment needed, you should also own a land for your proposed Jollibee store. But nevertheless, given the capital and the right location for the lot, I would definitely invest in a Jollibee franchise.



Related Post:

Two lessons from the Mang Inasal - Jollibee deal



The video below is just for fun as it already reached almost a million hits on youtube:



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