How to Franchise Red Ribbon Bakeshop in the Philippines

Red Ribbon’s mocha and chocolate cream cakes have been part of Filipino birthdays and holidays for over four decades. If you’re thinking about turning that into a business, here’s the good news: Red Ribbon is open to franchising, and the process is fairly well documented.

Behind the Brand

Red Ribbon started as a home-based baking hobby before opening its first store on Timog Avenue, Quezon City, in 1979. Its popularity grew quickly, and in 2005 Jollibee Foods Corporation, the same group behind Chowking and Mang Inasal, (JFC) acquired the business. Today, Red Ribbon has expanded to more than 370 stores across the Philippines and 33 branches in the US.

Red Ribbon didn’t start as a corporate play. In 1979, homemaker Amalia Hizon Mercado opened a small cake shop on Timog Avenue in Quezon City with her husband and five children helping run it. Jollibee Foods Corporation acquired the chain in 2005, decades after that first shop.

Why Red Ribbon Can Be a Good Business

Cakes and pastries ride on built-in, recurring occasions, birthdays, anniversaries, graduations, Christmas, Valentine’s, which gives Red Ribbon steadier, less trend-dependent demand than many food concepts. Being under JFC also means franchisees inherit an established supply chain, training system, and brand recognition that would take years to build independently.

What Franchisees and Customers Are Saying

Positive: “We love red ribbon. Their cakes have a unique texture that can only be found in the Philippines. Great cake rolls and a good variety of pastries.”, TripAdvisor review, Red Ribbon Makati branch, March 2014.

Critical: A customer described waiting 10-13 minutes while a staff member helped someone who appeared to know them personally, ahead of others in line, calling it a disappointment after years of patronage. ComplaintsBoard, May 2019.

Critical: A customer reported a cake purchased from an SM Calamba branch developing mildew before its printed consume-before date; the company replied and the complaint was marked resolved. ComplaintsBoard, July 2019.

Most complaints trace back to individual branch service and quality control rather than the brand’s core products.

Red Ribbon Franchise Requirements

Here’s what you’ll need to budget and plan for:

• Franchise Fee & Total Investment: ₱7,000,000 to ₱8,000,000, depending on store size and facilities.
• Initial Set-Up Fee: ₱600,000 (VAT-exclusive), due upon receipt of the franchise “Award Notice.”
• Royalty Fee: 7% of monthly gross sales.
• Advertising Fee: 3% of monthly gross sales.
• Franchise Term: 5 years, renewable upon mutual agreement.
• Minimum site size: around 70 sqm.

The total investment covers the Initial Set-Up Fee, store improvement/construction, equipment, fixtures and furniture, pre-opening expenses, hiring and training of the store team, and a refrigerated delivery truck (4T and up). Franchisees shoulder the store team’s salaries and benefits, though Red Ribbon assists with screening and training.

How to Franchise Red Ribbon in the Philippines

Here’s how the application process usually goes:

1. Prepare your requirements: a Letter of Intent (with the exact address of your proposed site), a vicinity map (with building perspective if available), the site’s dimensions and layout in sqm (minimum 70 sqm), and an accomplished Red Ribbon Application Form with a 2×2 photo.
2. Submit everything via email to ••••••••••••••••••••••••••••••••••••, or to their office address directly.
3. Wait for approval. If approved, you’ll receive an Award Notice confirming you’re a qualified franchisee.
4. Pay the franchise fee in full upon receiving the Award Notice.
5. Undergo the Basic Operations Training Program (BOTP), on-the-job training plus classroom sessions for you and your store team.
6. Store opening support, Red Ribbon assists during launch and full operation.

Who Is a Red Ribbon Franchise Best For?

Bakeshops live and die on foot traffic and repeat buyers. Here’s who tends to make it work.

• Entrepreneurs with ₱7M–₱8M in capital who want a proven, JFC-backed dessert brand rather than building one from scratch.
• Those who can secure a commercial site of at least 70 sqm in areas with steady foot traffic, malls, commercial strips, or residential centers.
• People comfortable with a mid-size investment compared to full restaurant franchises, with revenue tied to seasonal and occasion-based buying.

Advantages and Disadvantages of a Red Ribbon Franchise

Being part of the Philippines’ biggest food conglomerate cuts both ways. Here’s the honest version.

What works in your favor:

• Nearly 45 years of brand history and deep association with Filipino celebrations, instant recall with almost no local marketing needed.
• Backed by JFC’s supply chain, training systems, and franchise support infrastructure.
• Demand is recurring and occasion-driven (birthdays, holidays, graduations), which smooths out revenue across the year.
• Smaller footprint (70 sqm minimum) than a full restaurant, so site options are more flexible.
• Lower total investment than a full-format Shakey’s or Chowking store.

And here’s the trade-off that comes with that scale.

What you’re taking on:

• ₱7M–₱8M plus a ₱600,000 upfront set-up fee is still a substantial barrier for many first-time franchisees.
• 7% royalty and 3% advertising fee on gross sales apply every month, regardless of store profitability.
• Short 5-year term compared to the 10-year terms common with Shakey’s or Greenwich, meaning renewal negotiations come around more often.
• Sales can spike heavily around holidays and dip in off-peak months, so cash flow planning matters more than it looks on paper.

Cheaper Alternatives to Red Ribbon

If ₱7M–₱8M is more than you want to commit, these bakeshop brands offer a lower entry point:

• Julie’s Bakeshop, franchise fee around ₱350,000–₱500,000, with total investment (equipment, ingredients, initial inventory) typically ₱1.5M–₱3M. Positioned for the mass market, usually in residential areas near transport hubs.
• Bread and Butter Bakeshop, initial investment of roughly ₱700,000–₱1,000,000 for a small-store package under 70 sqm, covering equipment, setup, and staff training.
• Goldilocks, comparable in size to Red Ribbon, with its Bakeshop format running ₱6M–₱8M (Full Store packages run higher, ₱10M–₱15M), so it’s not necessarily cheaper, but worth comparing directly if you’re deciding between the two big legacy brands.

For a fuller comparison, see our roundup of the Six Best Bakeshop Franchises in the Philippines.

Alternative Franchise Opportunities

Beyond the cheaper options above, here’s how Red Ribbon compares to other bakeshop franchises in the Philippines:

• Goldilocks, the oldest and most iconic Filipino bakeshop chain (since 1966), with the broadest product range.
• Julie’s Bakeshop, Cebu-founded, now the largest by store count, positioned on affordability and neighborhood accessibility.
• Conti’s Bakeshop & Restaurant, a sit-down dessert-café experience rather than grab-and-go.
• Mary Grace, premium/gift positioning, marketed as a “pasalubong” item at a higher price point.

See our full list of bakeshop franchises in the Philippines for more options.

Related Bakery Franchise Guides

Exploring other bakery-format franchises in the Philippines? See our guides on Mister Donut and Pan De Malunggay.

Frequently Asked Questions

Here’s what people usually ask before franchising a bakeshop this size.

How much is the Red Ribbon franchise fee?

The franchise fee is bundled into the total investment of ₱7M to ₱8M, which includes a ₱600,000 Initial Set-Up Fee due upon your Award Notice.

Are there ongoing fees after opening?

Yes, a 7% Royalty Fee and a 3% Advertising Fee, both based on monthly gross sales.

How long is the franchise term?

5 years, renewable upon mutual agreement between you and Red Ribbon.

What’s the minimum site size?

Around 70 sqm.

Who do I contact to apply?

Red Ribbon Franchise Relations Department, Ms. Brigette Z. Delizo, ••••••••••••••••••••••••••••••••••••, +632 982 5000 local 4225. Office: 29th Floor, Jollibee Plaza Building, No. 10 F. Ortigas Jr. Road, Ortigas Center, Pasig City 1600.

Official Franchise Page

Red Ribbon Official Franchising Page