Monday, September 18, 2006

Franchising Julie's bakeshop

Julie’s Bakeshop was established in January 6, 1981 as a mom-and-pop type of business by Rodrigo and Julia Gandionco, at Wireless, Mandaue City, just north of Cebu city. Originally, the intention was for the bakeshop to augment the bread requirements of the family’s canteen business. However, in just six months, another branch was opened near Aznar Coliseum, at a suburb area of Cebu City.

Customers for hot, oven-fresh bread grew, with each successive bakeshop opened being accepted by the ever-demanding Cebuano populace. Julie’s Bakeshop, thus, continued to grow, establishing branches all over Cebu City and its neighboring towns.

Franchise FAQs:

Q: Who chooses the location for the bakery?
A: The interested applicant is required to recommend a site for the bakery. The proposed site is then sent to the Julie’s Franchise Corporation – Franchise Development Office for verification.

Q: What is the minimum space requirement for a Julie's Bakeshop site?
A: The recommended space requirement is at least 60 square meters. It is highly recommended that the site is fronting a main road, and has a high pedestrian (foot) traffic. However, the facade should be no less than four meters wide.

Q: How much is my initial investment?
A: Initial investment varies from Php 800,000 to Php 2,000,000. This already includes the Php 250,000 franchise fee, cost of renovation of the site, initial ingredients, and equipment, among others. The franchise fee gives the right to qualified franchisee to operate Julie’s Bakeshop for five years.

Q: When do I get back my initial investments?
A: Payback period is highly dependent on the sales of the bakery. However, based on the experience of our existing franchisees, the average ROI is two and half years.

Q: What are my monthly fees?
A: Monthly royalty is pegged at 2.5% of gross sales. Each bakery is also required to remit 1.5% of gross sales for Marketing Support Fund. The marketing fund will be used for marketing and promotional activities in support of the bakeries.

Q: What training do I get?
A: JFC will provide you a full-management training program to ensure the success of operating a bakeshop. These training include a 10-day general orientation training (Seminar for Franchisees and Supervisors) and a two-week bread-baking science and technology training for the franchisees, a hands-on training for chief bakers, an on-site training on operations standards and customer relations for bakery crew.

JFC will also accommodate apprenticeship for bakery crew provided these are conducted at the company owned bakeries in Cebu.

Q: Who will hire my bakery crew?
A: It is advisable that the franchisee directly hires the needed number of crew. This is of course based on the standard set by JFC. However, the Human Resource Department can assist the franchisee on their personnel needs.

Q: Do I get marketing support during the opening?
A: JFC provides a bakery-opening package consisting of all necessary marketing collaterals needed for a successful opening. A checklist of these items is provided soon after the signing of Franchise Agreement.

Q: Where can I buy my equipment and supplies?
A: Supplies and Logistic Division, is the sole distributor of all equipment, ingredients and supplies used in the bakery.

List of Requirements

  1. Letter of Intent, addressed to the Franchise Director signifying the person's interest to open a JBS in a specific site, area or location.
  2. Letter of Intent to Lease acknowledged and signed by the lessor. This requirement may be disregarded if proposed site is owned by the franchise applicant.
  3. Photocopy of the property's TCT as proof of ownership, either by the applicant (if owned) or by the landlord/lessor.
  4. Location Map, indicating the proposed site street address and landmarks in the area to include neighboring stores and competitors.
  5. Franchise Qualification Data Form, filled out and properly accomplished.
  6. Photocopy of Community Tax Certificate of the current year.
  7. Market Study properly accomplished and filled out.
  8. Payment of initial fee of Php20,000. This amount is not refundable but will form part of the franchise fee.
  9. Physical Examination.
  10. Psychological and Suitability Tests.
  11. Contract of Lease & LAA for 5 years.
  12. Panel Interview.
  13. Payment of full franchise fee and deposit.
  14. 1" X1" latest photo, 2 copies.


Steps for Franchise Application

1. An application is considered submitted and for processing when requirements 1, 2, 3, 4, 5, and 6 are complied with. Only upon its submission will FDO process the application.

2. Only one (1) applicant per franchise branch is allowed. In cases of multiple applications in one area, the first one who submits the said requirements will be considered the applicant. Partial submission of requirements will be accepted but will not be considered as filed. It is only upon his/her disqualification will other applicants be entertained.

3. Franchise applicant then proceeds in making the market study on the proposed area. A market study form is provided by FDO. The franchise applicant has 15 days to submit the market study from the time of receipt of the market study form and communication from FDO.

The application will be considered withdrawn if it is not submitted within the stipulated period. FDO will open the area applied for upon withdrawal of the franchise applicant. To re-apply, the franchise applicant has to send a letter of communication to FDO stating their interest to re-apply. This re-application would now be subject to evaluation and other franchise applications on line.

4. The initial fee of =P=20,000.00 is paid to JFC upon submission of the market study. Processing will not continue if initial fee payment has not been received. Non-payment after five days of receipt of market study will have the application considered withdrawn.

5. Finished market study is then submitted to FDO for verification. FDO decides within a period not exceeding 10 working days on the site of the franchise applicant.

6. Upon the payment of the initial fee, the franchise applicant then accomplishes and submits the following:

  • 6.1. Complete Physical Examination at the designated laboratory and doctor by FDO.
  • 6.2. Take the Psychological and Suitability Tests. Non-compliance within 15 days of above-cited requirements will forfeit application and initial payment.

7. Contract of Lease (COL) and Lease Assignment Agreement (LAA) on the approved site should be submitted within 30 days from its approval or it will be considered withdrawn. No panel interview will be scheduled without the Contract of Lease and Lease Assignment Agreement. Should the application be considered withdrawn, franchise applicant may re-apply for the same area so long as there is no other applicant in consideration. A letter stating such should be sent to FDO.

8. Final approval of the franchise application will be made by the panel (composed of five panelist from the members of the ManCom and BOD).

9. Signing of the FRANCHISE AGREEMENT and LEASE ASSIGNMENT AGREEMENT will be after the panel’s approval AND FULL PAYMENT OF THE FRANCHISE FEE SECURITY DEPOSIT AND FRANCHISE DEPOSIT, the total amount of which is P=750,000.00 (i.e., balance of P230,000 + P20,000 Security Deposit + P500,000.00 Franchise Deposit)

Contact details:

Cebu (Main): (032) 261-7117; 261-7118; 261-7119; 262-6454
Dial local number 101 or 102 for the Operator
Fax: (032) 261-3326

Manila Branch
Tel: (02) 643-7455
Telefax (02) 643-5024

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    Anonymous said...

    in the event the franchisee would like to withdraw even under contract for 5 years, do they have the chance to get their franchisee and security fee back?

    angel said...

    can we ask for the demand and supply for the last five years, started 2003 up to 2007?

    Todd said...

    I have tried to contact Julie's Bakeshop by email, but they do not reply. Very strange...

    Nina Era said...

    do you lease out or rent out on the lot?I have a property in congressional avenue that is a commercial area now. you might be interested to check out the area.thanks!

    J E R R Y B J U L I A N said...

    if you are interested to open in pantukan, compostela valley we have a space for rent it is a newly nice commercial appartment with a nice location.