How to Franchise Red Ribbon in the Philippines?

Red Ribbon, a beloved Filipino brand known for its delectable cakes and pastries, has a well-established franchise network across the country. This comprehensive guide equips you with the knowledge and cost estimates to embark on your Red Ribbon franchise journey.

Step 1: Understanding the Opportunity

• Brand Research: Immerse yourself in Red Ribbon’s world! Explore their website and social media pages to understand their brand philosophy, target market, product offerings, and commitment to quality. RedRibbonBakeshop.com

Step 2: Investment Details

• Estimated Capital Investment: Php 5 to 6 million. This is the estimated capital investment to franchise a Red Ribbon store, depending on the final store size and facilities.
• Initial Set-up/Renewal Fee: Php 672,000 (Inclusive of VAT). This consists of initial support and assistance in setting-up an outlet efficiently and in accordance with the standard requirements. Also, this is included in the Franchise Estimated Capital Investment. It should be paid upon receipt of the Franchise Grant.
• Franchise Term: 5 years. Renewable but subject to franchisee’s performance.
• Store Floor Area Requirement: 40 to 50 sqm. The required frontage is 5 meters.
• Royalty Fee: 7.0 % (Net of Sales). Billed every month.
• Advertising Fee: 3.0 % (Net of Sales). Billed every month.

Note: Other details such as specific investment cost, return of investments and other franchising details will be discussed with you by our Operations team, once your application has been approved.

Step 3: Franchise Application Process

1. 1. What are the requirements in applying for a Red Ribbon franchise?
      The applicant is required to submit the following:
      • Letter of intent (indicate exact address of proposed site).
      • Vicinity map of proposed site (include building perspective if available).
      • Location map of proposed site (online maps are preferred).
      • Dimension and layout of the site in sqm.
      • Site pictures (clear copies).
      • Proposed site should be at least 40 to 50 sqm with a 5-meter frontage.
   2. Can I still apply if I do not have a proposed site for a store?
      No, a proposed site is a requirement in applying for a Red Ribbon franchise.
   3. How much capital is required to franchise a Red Ribbon Bakeshop?
      The capital needed ranges from P 5M to P 6M, depending on the final store size and facilities. This includes the following:
      • Initial set-up fee (VAT inclusive).
      • Store Construction/Improvement.
      • Equipment/Fixtures/Furniture.
      • Pre-opening expenses.
      • Hiring and training of store team.
   4. What type of training is available to a franchisee prior to store opening?
      The Franchisee and franchisee’s store team are required to successfully complete the Basic Operations Training Program (BOTP) at a designated duration and training store. This includes blended learning methodology, such as classroom sessions and store immersion, to reinforce the learning process. Additional training and support are provided on a case-to-case basis.
   5. How long is the Return on Investment (ROI)?
      The ROI depends on several factors such as sales, market potential, investment, and ability of the Franchisee to manage the overall operations of the store. Other questions on financial viability will be discussed by our Operations team once the site is approved.
   6. Who will provide the manpower to operate the store?
      The Franchisee will be responsible for providing the manpower to operate the store. The store team will be the Franchisee’s direct employees. The Franchisee will be responsible for the store team’s salaries and benefits.Red Ribbon, as the Franchisor, will assist in the screening and training process.

Step 4: Pre-Opening Preparations

• Franchise Agreement Signing: A formal Franchise Agreement will outline the terms, fees, royalty structures, product sourcing, and operational procedures.
• Store Construction and Set-up: Red Ribbon provides detailed guidelines and support for building or renovating your store to meet their branding and space requirements.
• Training and Staff Hiring: Red Ribbon offers comprehensive training for you and your staff on product handling, baking procedures, customer service, and upholding brand standards.

Step 5: Grand Opening and Beyond

• Grand Opening Support: Red Ribbon provides assistance with your grand opening by providing promotional materials and marketing suggestions.
• Ongoing Support: As a franchisee, you’ll receive continuous support through operations manuals, marketing tools, product updates, inventory management guidance, and assistance from their team.

Important Resources

• Red Ribbon Website (limited franchising information): RedRibbon.ph/franchising
• Red Ribbon Contact Information: Call their hotline (+02) 8-982-5000 local 4225 or email [email protected]

By following this guide, conducting thorough research, and directly contacting Red Ribbon, you can make an informed decision about becoming a Red Ribbon franchisee. Remember, a passion for baking, a strong work ethic, a commitment to quality, and adherence to Red Ribbon’s brand values are key ingredients for your franchising success!