How to Franchise Red Ribbon Bakeshop

Known as one of the most loved bakeshop brand in the country, Red Ribbon Bakeshop has built  over 370 stores nationwide and 33 stores in the US during its three decades of existence. Red Ribbon’s beautiful and great tasting cakes and other types of pastries have become part of every occasion in the lives of Filipino families.

Here are some things you need to know if you wish to franchise Red Ribbon Bakeshop:



  1. Letter of intent indicating exact address of proposed site
  2. Vicinity map of proposed site including building perspective
  3. Dimension and layout of the site in sqm
  4. Accomplished Red Ribbon application forms including 2” x 2” coloured photo of applicant

Franchise Inclusions:

According to Red Ribbon’s website, franchisees need to prepare around P7 million to P8 million depending on the size of the store and facilities. Franchise Term lasts for five years.

This amount will include the following:

  1. Initial set-up fee
  2. Improvement/construction
  3. Equipment/Fixtures/Furniture
  4. Pre-opening expenses
  5. Hiring and training of store staff
  6. Refrigerated Delivery Truck

Other Fees

A royalty fee of 7% and advertising fee of 3% of your monthly gross sales will be charged.

You will be required to pay an an initial set-up fee of Php 600,000 (12% VAT excluded) upon receipt of Award Notice.

Return of Investment

Return of investment, which will be further discussed once site is approved, would depend on several factors like sales, market potential, investment as well as the ability of the franchisee to manage the overall operations of the store.

Franchisee Training

The franchisee and his or her staff will need to undergo Basic Operations Training Program ( BOTP ) at an assigned duration and training store.

Store Manpower

Although the franchisee will be responsible for providing staff to operate store, Red Ribbon will be providing assistance during screening process and training of staff. Since the store staff will be employees of the franchisee, the latter will be the in charge of their salaries and benefits.

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