Kuya J now open for franchising
KUYA J Holdings Group, Inc. is opening itself up to a new franchising scheme that would allow a franchisee to invest as low as P4.2 million for a new store, as the restaurant chain ramps up its expansion in the country.
Under the new franchising scheme, the operator of Kuya J restaurants said it can extend a loan of up to 70% of the total cost to put up a store to interested franchisees.
For example, the investment for one Kuya J full-serviced restaurant typically costs P10-15 million, depending on the area size, location, and store format. The capital requirement includes a franchise fee of P1.2 million, and service fee of P300,000.
Kuya J Holdings can shoulder up to 70% of the capital requirement, with the remaining 30% to be paid by the franchisee. The franchisee can then use the revenues from the operating store to pay the initial costs handled by the company.
The loan program will carry an interest of eight percent per annum within a span of five years.
Kuya J Holdings President Winglip K. Chang said franchisees can get a return on their investments within two years.
Mr. Chang said this franchising scheme will open them up to more partnerships.
“We welcome all types of franchisees. This scheme allows us to explore other options, because there might be a sector of people who are qualified but with not enough capital. This also shows that we are serious when we say that we want to partner with you,” Mr. Chang said.
Kuya J Holdings currently owns and operates a total of 105 stores serving Filipino dishes in the country. The company’s portfolio also includes other brands such as Isla Sugbu, Seafood City, Tsay Cheng Chinese Cuisine, Majestic, and the Heritage Grand Convention Center of Cebu.
Last month, the company also said that it will be bringing in American fast food chain brand Popeyes to the Philippines, after securing an exclusive master franchise deal with the company.
Popeyes has over 2,900 restaurants internationally, making it one of the largest quick service restaurants in the world. —