One of our readers, Vincent posted a question as a comment on another post, so I thought I’d answer it here, as a new post since it is somewhat unrelated to the post where the question was posted.
Vincent said that he and his wife were thinking of moving to the Philippines, and perhaps wanted to open a franchise of a Jollibee or McDonald’s fast food franchise in the Digos or Davao area in Mindanao.
Vincent, either Jolibee or McDonalds would be a great money maker! If you ever notice, in the Philippines, these places are always full of customers buying burgers, fries, fried chicken or whatever. Food is always a hit! It is not cheap to buy one of these franchises, though. I have done some work with a Franchising Company, and know a little bit about this. Although the company that I worked with did not represent either of these two fast food chains, it is my understanding that the Franchise Fee for a Jolliebee is around P23 Million (a little over $400,000) and the Franchise Fee for a McDonald’s is around P17 Million (around $340,000). These figures are a few years old, so they may have changed a bit, but should be fairly close to reality.
Yes, this is a lot of money to get started, but again you are buying a business that everybody knows, is well advertised, etc. I mean, if you open up a McDonald’s in Digos, it’s not like people will say – “hey, thereis a new place, I wonder what kind of food they have?”. No, when a McDonald’s goes up, everybody knows exactly what kind of food they can get there and what it will taste like. So, you are buying into an established business that is very well known, and it will succeed in almost 100% of cases.
So, if you can afford to open this kind of place, I think it’s a great investment, and will pay off over time, leaving you a nice comfortable living!
Good luck, Vincent!