Philippine fastfood giant Jollibee Foods Corporation (JFC) and its partner, Asian investment firm RRJ Capital Master Fund II LP, have sealed the deal with Dunkin Donuts Franchising LLC to operate Dunkin’ Donut stores in China.
In a disclosure to the Philippine Stock Exchange (PSE) on Tuesday, JFC said the franchise agreement grants the newly formed joint venture firm Golden Cup Pte. Ltd. the exclusive right to develop Dunkin’ Donuts in Hong Kong, Macau, Fujian, Hunan, Jianxi, Guangdong, Hainan, Guanxi, Beijing, Tianjin, Hebei, Shangxi, Chongqing, Guizhou, Sichuan, Yunnan, Heilongjiang and Jilin.
Golden Cup Pte. Ltd. is the joint venture company formed by Jollibee Worldwide Pte. Ltd. (a wholly owned subsidiary of JFC) and Jasmine Asset Holding Ltd. (a wholly owned subsidiary of RRJ Capital Master Fund II, L.P.).
In an earlier disclosure to the PSE on 19 December, JFC said “the Dunkin’ Donuts deal provides the JV with an excellent opportunity to operate and expand one of the leading global coffee chain brands in the 2nd largest economy in the world.”
JFC said it will invest USD300 million in the venture, USD180 million of which will be contributed by JPWL. In the first 12 months of operations, JPWL’s initial investment would be about USD18 million.
As of December 2014, Jollibee operates 811 stores in the Philippines and 101 stores overseas. Dunkin’ Donuts, on the other hand, has nearly 11,000 restaurants in 33 countries worldwide.