The Philippines’ largest food service network Jollibee Foods Corp and Asian based investment firm RRJ Capital Master Fund II LP, through their subsidiaries, have committed an investment of up to $300 million to launch a new business that will own and operate Dunkin’ Donuts restaurants in the People’s Republic of China.
The fast food giant’s wholly-owned subsidiary and RRJ’s subsidiary Jasmine Asset Holding Ltd have entered a joint venture (JV) agreement.
According to Jollibee’s disclosure at the stock exchange, the business will be a 60-40 percent ownership split between JWPL and Jasmine, respectively.
In proportion to its ownership in the business, JWPL will contribute up to $180 million of the $300 million investment and will be responsible for directing the daily operations of the business.
Both JWPL and Jasmine have signed an agreement with Dunkin’ Donuts Franchising LLC (Dunkin’), today, to execute a master franchise agreement (MFA) between Dunkin’ and the new JV identity (once the latter is organized in compliance with regulatory requirements for the MFA’s execution.)
Under the MFA to be signed, the JV will have the exclusive right to develop Dunkin’ Donuts and will open and operate a minimum of 1,459 shops in China for over 20 years, based on an agreed development schedule.
The China territories where the JV will develop Dunkin’ Donuts restaurants include: Hong Kong, Macau, Fujian, Hunan, Jianxi, Guangdong, Hainan, Guanxi, Beijing, Tianjin, Hebei, Shangxi, Chongqing, Guizhou, Sichuan, Yunnan, Heilongjiang, and Jilin.
Jollibee operates 2,886 stores worldwide, wherein 2,283 are in the Philippines. RRJ Capital as an investment company was founded in 2011 and has offices in Hong Kong and Singapore.
Dunkin’ Donuts, meanwhile, is regarded as one of the world’s leading baked goods and coffee chains, serving more than 5 million customers per day worldwide.