How to Franchise: Julie’s Bakeshop in the Philippines

Bread has always been part of every Filipino family’s meals, especially during breakfast and merienda time. One of the well-known brands in the Philippine bread industry is Julie’s Bakeshop. Interested in franchising Julie’s Bakeshop? Continue reading below to know more details.

About Julie’s Bakeshop

Julie’s Bakeshop is named after its founder Julia Gandionco who used to be a canteen concessionaire before she ventured into the bakeshop business. She was not a baker herself but she took time to learn everything she needed to know about baking. “Fresh, steaming hot bread baked in full view of the customers and served with courteous greetings and warm smiles” became the benchmark of Julie’s Bakeshop’s phenomenal success.

The first Julie’s Bakeshop store opened on January 6, 1981. Just six months later, the second store was opened. Ten (10) more branches of Julie’s Bakeshops all over Cebu City were launched after three years. The company continued expansion when it organized Julie’s Franchise Corporation in 1998 to provide Franchise Management Support. With several hundreds of Julie’s Bakeshop branches nationwide, the company is now considered the largest bakeshop chain in the Philippines.

Franchise Fee and Total Investment

The franchise investment for a branch of Julie’s Bakeshop varies from P1,740,000 to P2,000,000 depending on the store size and location.

Included in this amount are the franchise fee, security deposit, start-up or business development costs, building renovation costs, equipment and machinery, and bakeshop ingredients among others. In addition to these costs, there is a monthly royalty fee paid to the company pegged at 1.5% of gross sales.

The franchise fee is valid to operate a Julie’s Bakeshop for five (5) years. The average payback period is said to be two (2) years.

Requirements

The aspiring franchisee must recommend a specific location. The proposed site will be forwarded to the Franchise Development Office (FDO) for assessment and verification.

The minimum floor area requirement for a Julie’s Bakeshop site is fifty (50) square meters. The frontage must not be less than four (4) meters. A site that shows prominence, is fronting a major road, and with high pedestrian volume is preferable.

Julie’s Franchise Corporation (JFC) commits to provide full management training program in order to ensure the success of operating a Julie’s Bakeshop. There will be an extensive training on bakeshop management including hands-on making of breads and cakes. Aside from that, there will be regular seminars and workshops to franchisees in order to address on-going demands in running the franchise.

Application Process

In order to franchise Julie’s Bakeshop, follow these steps:

1. Submit the initial documentary requirements (Letter of Intent, Personal Resume, Site Photos, and Location Map).

2. There will be an initial site inspection and interview with the Franchise Business Development Officer.

3. Submit the Site Market Study.

4. Pay the Application Processing Fee of P35,000.

5. A market verification will be conducted by the Franchise Business Development Officer.

6.The franchisee will undergo the physical and psychological exams, and background investigation.

7. There will be a pre-panel interview at the Regional Office.

8. There will be a final panel interview at the Cebu Head Office.

9. If approved, pay the Total Investment Cost of P1,740,000.

10. Finally, submit the Signed Franchise Agreement, Contract of Lease, (COL) and Lease Assignment Agreement (LAA).

Franchisee Application Details

The following are the specifics of the application process:

1. To be officially considered submitted and for processing, requirements 1 to 6 must be complied with. The Franchise Business Development will process the application only upon its submission.

2. Note that only one (1) applicant per franchise branch is considered. If there are multiple applications in one area, only the first one who submits the said requirements will be considered the applicant. Partial submissions of necessary requirements shall be accepted but shall not be considered already filed. Other applicants will be entertained upon disqualification of the considered applicant above.

3. The applicant shall make the market study on the proposed area. The Franchise Business Development will provide the market study form. The franchise applicant only has 15 days to submit the market study from the time of receipt of the market study form and getting in touch from Franchise Business Development. If it is not submitted within the stipulated period, the application will be withdrawn and the Franchise Business Development will open the area applied for upon withdrawal of the applicant. In order to re-apply, the franchise applicant has to send a letter of communication to Franchise Business Development stating their interest to re-apply.

4. Upon submission of the market study, the applicant shall pay P35,000 as the initial processing fee. Otherwise, processing will not commence. If the said payment is not received by the company in 5 days, application will be considered as withdrawn.

5. Once the market study is finished, it must be submitted to Franchise Business Development for verification. Within a period not exceeding 10 working days, Franchise Business Development decides on the site of the franchise applicant.

6. The applicant shall accomplish and submit the Complete Physical Examination at the designated laboratory and doctor accredited by Franchise Business Development and take the Psychological and Suitability Tests upon the payment of the initial fee. Non-compliance within 15 days will forfeit initial payment and application.

7. Within 30 days from its approval, the Contract of Lease (COL) and Lease Assignment Agreement (LAA) on the approved site should be submitted. Otherwise, it will be considered withdrawn. There will be no schedule for panel interview without the Contract of Lease and Lease Assignment Agreement. If the application be considered withdrawn, the applicant may re-apply for the same area so long as there is no other applicant in consideration. The applicant should send a letter stating such to Franchise Business Development.

8. The panel composed of five panelist from the members of the ManCom and BOD shall have the final approval of the application.

Operations

The company provides a bakery opening package. It consists of all necessary marketing collaterals needed for a successful opening. After the signing of the Franchise Agreement, an item checklist will be provided.

Julie’s Bakeshop also provides recruitment support by providing the criteria when hiring the bakery staff. Selected personnel are also given classroom and on-the-job trainings.

In terms of franchisee’s equipment, ingredients, and supplies, it is the Logistics and Supplies Division (SLD) who acts as the sole distributor.

Franchise Contact Information

CEBU OFFICE

JULIE’S FRANCHISE CORPORATION
C. Padilla St., Duljo-Fatima,
Cebu City 6000 Philippines
Tel.nos. (032) 505-3838
Mobile (0908) 8209979
Telefax (032) 261-3326

CONTACT PERSON

Contact: Mr. Raymund G. Fernandez
Franchise Business Development Manager
Mobile No.: (0908) 8209979 
Email: raymund.fernandez@juliesbakeshop.com.ph

Looking for other franchises in the Philippines? Click here for a comprehensive list: Complete list of Philippine companies available for Franchising

Information and Photo Sources: Official Company Website (www.juliesbakeshop.com.ph), Inquirer.net