MANILA, Philippines - A tandem led by fastfood giant Jollibee Foods Corp. (JFC) has finalized an agreement to be the exclusive operator of the Dunkin’ Donuts brand in in the world’s second largest economy.
JFC said in a disclosure to the local bourse yesterday that Golden Cup Pte Ltd., a joint venture between the fastfood operator’s wholly-owned subsidiary Jollibee Worldwide Pte. Ltd. and Jasmine Asset Holding Ltd., has signed a master franchise agreement with Dunkin Donuts Franchising LLC.
The deal granted Golden Cup exclusive rights to develop and expand Dunkin’ Donuts in China, particularly in Hong Kong, Macau, Fujian, Hunan, Jianxi, Guangdong, Hainan, Guanxi, Beijing, Tianjin, Hebei, Shangxi, Chongqing, Guizhou, Sichuan, Yunnan, Heilongjiang and Jilin.
Golden Cup is 60 percent owned by JFC while Jasmine Asset Holding controls the remaining 40 percent. Based on the two firm’s agreement, JFC would be in charge for directing day to day operations of the Dunkin’ Donuts stores to open in China.
JFC last month announced it is entering into a partnership with Jasmine Asset Holding to open a slew of donut shops over the next two decades in China.
The fastfood giant said the plan is to open and operate a minimum of 1,459 Dunkin’ Donuts shops across China over 20 years.
The two firms have already committed to invest up to $300 million to the joint venture, in which JFC would contribute $180 million.
Dunkin’ Donuts is considered as one of the world’s leading baked goods and coffee chains, serving more than five million customers daily worldwide.
As of the third quarter of 2014, there were a total of 11,123 operational Dunkin’ Donuts stores globally.
JFC’s acquisition of the territorial rights of Dunkin’ Donuts in China further reinforces the company’s business outside the country.
JFC operates the largest fastfood service network in the Philippines with 2,283 branches and another 603 stores abroad as of end-November. Its brands are composed of Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King.