Jollibee Foods report 18% growth in royalty/franchise fees
Jollibee Foods Corp., the country’s largest fast-food chain, reported an 18-percent jump in revenues to P5.9 billion from royalty, franchise fees and others.
Jollibee Foods’ brands include Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Yong He king, and Hong Zhuang Yuan.
In its disclosure to the stock exchange, Jollibee Foods said its royalty fees amounted to P5 billion last year from P4.3 billion in 2015. Revenues from franchise fees soared by 62 percent to P307 million from P189 million.
Service fees almost doubled to P119 million from P65 million but rent income dipped to P82 million from P92 million.
Jollibee Foods has royalty and franchise agreements with independent franchisees for its brands and they are required to pay franchise fees and monthly royalties equivalent to a percentage of the franchisees’ net sales.
Other revenues which include delivery fees and other miscellaneous revenues jumped by 71 percent to P250 million from P186 million a year ago.
The company said the number of new stores it opened hit a new high last year.