Guide on How Much is Needed for
Red Ribbon Franchise Business Capital
RED RIBBON FRANCHISE – Here is an idea on how much is needed for business capital in Red Ribbon Bakeshop franchising.
Are you planning to engage in business soon? You may prefer some food business which undeniably has a high chance of working out successfully. It is part of the popular franchise businesses in the Philippines.
One of the prominent food franchise businesses in the country is the Red Ribbon Bakeshop. Undeniably, a lot of Filipino people are cake and dessert lovers. Most of its branches are in shopping malls.
The Red Ribbon franchise may need a big business capital to begin with. On its official website, it posted the range of the amount of money needed in franchising.
Based on their official post, the Red Ribbon franchise may need between Php 7-million to Php 8-million for business capital. The said capital range includes the following:
- Initial Set-Up Fee
- Pre-opening Expenses
- Hiring and Training of Store Team
- Refrigerated Delivery Truck ( 4T and up )
According to Red Ribbon, the franchising term is five(5) years and there are separate payments for the Royalty Fee and the Advertising Fee.
With regards to the Royalty Fee, it is 7% of the Gross Sales monthly while the Advertising Fee is 3% of the monthly Gross Sales.
Furthermore, with regards to the initial set-up fee, it is at Php 600,000.00 excluding the 12% Value Added Tax (VAT). The payment for the initial set-up fee should be made upon the receipt of the “Award Notice”.
Are you planning to check on the steps on Red Ribbon franchising? We’ll update you soon with a detailed guide.
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