Jollibee Franchise Costs, Fees & FDD

Year Business Began: 1975

Franchising Since: 1979

U.S. Headquarters: Denver, Colorado

Country of Origin: The Philippines

Estimated Number of Units: 1,760

Franchise Description: JBM LLC is the franchisor. The franchisor’s direct parent is Jolly USA Services LLC, which is wholly owned by Jollibee Foods Corporation (USA). Jollibee Foods Corporation (USA) is wholly owned by Jollibee Foods Corporation, a Philippine corporation. The franchisor offers franchises for restaurants featuring fried chicken, spaghetti, hamburgers, chicken sandwiches, desserts, side dishes, and other food items, beverages, and related products and services under the “Jollibee” name and marks.
Training Overview: The franchisee (or if the franchisee operates as a legal entity: the managing owner), the designated manager (if applicable), and such other of the franchise representatives that the franchisor specifies taking into account the organization, infrastructure and experience (collectively, the “mandatory trainees”) must complete an initial training program conducted by the franchisor on the material aspects of operating a Jollibee restaurant. The franchisor will control the substance and duration of the initial training program, which will be held at location and in a format of its choice, which may be virtual. Currently, initial training consists of seven hours of classroom training and 270 hours of on-the-job training. The franchisor may require that any mandatory trainees attend and satisfactorily complete various training courses that the franchisor periodically chooses to provide at the times and locations that the franchisor designates, including courses and programs provided by third parties it designates. Besides attending these courses, the franchisor may require franchisees (or if they operate as a legal entity, the managing owner) and the designated manager (if applicable) to attend periodic meetings or conferences of Jollibee restaurant franchise owners at a location the franchisor designates, if it hosts such a meeting or conference.

Territory Granted: The franchisor will not receive an exclusive territory under the Franchise Agreement, or other territorial rights or protection of any kind. Franchisees may face competition from other franchisees, from outlets that the franchisor owns or from other channels of distribution or competitive brands that the franchisor controls.

Obligations and Restrictions: If franchisees are an entity, they must identify one of the owners who is a natural person with at least 25% ownership interest and voting power in the franchise and who will have the authority of a chief executive officer (the “managing owner”). The franchisor must approve the person that will act as the managing owner, if applicable. If franchisees do not (or if they are conducting business as an entity, the managing owner does not) wish to supervise the day-to-day operation of the restaurant, then they must designate a person that the franchisor approves to supervise the day-to-day operation of the restaurant who has completed the training program (the “designated manager”). The designated manager must work full-time at the restaurant, to supervise the day-to-day operations of the restaurant. Franchisees must offer and sell from the restaurant all of the products and services that the franchisor periodically specifies. Franchisees may not offer or sell at the restaurant, the premises or any other location any products or services the franchisor has not authorized. The franchisor may periodically set a maximum or minimum price that franchisees may charge for products and services offered by Jollibee restaurants.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years from the date the Franchise Agreement is signed. If franchisees satisfy the conditions in their Franchise Agreement, they may renew their franchise for one successive term of 20 years.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s promissory notes, mortgages, leases or other obligations.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$40,000	$40,000
Lease Review Fee	$1,500	$1,500
Real Estate	$6,220	$25,148
Soft Costs	$80,000	$400,000
Site Work	$0	$600,000
Leasehold Improvements	$800,000	$2,000,000
FF&E, Signage, and Technology	$300,000	$450,000
Initial Training	$20,000	$35,000
Opening Supplies	$12,500	$25,000
Insurance	$10,000	$20,000
Utility Deposits	$2,500	$5,000
Business Licenses	$300	$600
Grand Opening Advertising	$15,000	$15,000
Additional Funds – 3 months	$347,441	$1,270,756
ESTIMATED TOTAL	$1,635,461	$4,888,004

 
Other Fees

Type of Fee	Amount
Royalty	5% of gross sales.
Marketing Fund Contribution	4% of gross sales (subject to change).
Additional Training	$250 per day (subject to change) plus the franchisor’s direct costs, including travel.
Conference and Program Fees	$1,000 - $5,000 (subject to change).
Vendor Fees	Currently not assessed.
Renewal Fee	50% of the then-current initial franchise fee.
Transfer Fee (Franchise Agreement)	$20,000 or 50% of the then-current initial franchise fee (whichever is greater).
Testing of New Product/Supplier	The franchisor’s direct costs.
Interim Operations Fee	10% of gross sales plus costs and expenses.
Technology Fee	0.25% of gross sales (subject to change).
Inspection Fee	Reimbursement of all inspection costs.
Financial Audit	Reimbursement of all audit costs.
Interest	1.5% per month or highest commercial contract interest rate allowed by law, whichever is lower.
Insufficient Funds Fee	$200 per occurrence, or the highest rate permitted by applicable law, whichever is lower.
Maintenance	Franchisees must reimburse the franchisor’s expenses.
Insurance	If franchisees fail to obtain insurance, the franchisor may obtain insurance for them and franchisees must reimburse the franchisor for these amounts, plus expenses.
Tax Reimbursement	The franchisor’s direct out of pocket costs.
Indemnification	Reimbursement of the franchisor’s costs, damages, and expenses.
Costs and Attorney’s Fees	Reimbursement of the franchisor’s costs and fees.
Lost Revenue Damages	Net present value of royalties and marketing fund contributions, from the date of termination until the earlier of (i) 5 years from the date of termination, or (ii) the scheduled expiration date of the Franchise Agreement. Payable if the franchisor terminates the Franchise Agreement because of the franchisee’s default (or the franchisee terminates without cause).

The above information has been compiled from the FDD of Jollibee. Year of FDD: 2025.
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