How to Start a Red Ribbon Franchise

Sweets and pastries are, undeniably, a part of every Filipino’s life. This is already expected on birthday occasions, festivals, anniversaries, and even if there is no event, at all. This is especially true in cakes.

In this article, we are going to talk about one of the leading brands that are patronized when it comes to baked goods — Red Ribbon Bakeshop, and how you can franchise your own branch. This can be beneficial for your entrepreneurial journey as it is a big figure, after all. It is known not just for its name, but also for the goods it offers.

Now, let’s find out more about Red Ribbon’s journey and their goal of sharing their success to aspiring franchisees.

About Red Ribbon Franchise

The company is a Filipino-owned establishment founded by Quezon City’s Mercado family in 1979. It started as a small cake shop along the roads of Timog Avenue and is built out of the pure hobby in baking. Its trademark is the red ribbon that they always use in their packaging.

Over time, their brand became known internationally and it eventually reached the land of California, Hawaii, New York, Texas, and many more. Within the country, on the other hand, there are a total of 450 branches.

Currently, aside from cakes, they also offer other baked products like puto, pandesal, and ensaymada.

Red Ribbon Franchise Details

If you are interested in building your own outlet of Red Ribbon, refer to the following details regarding its franchising terms:

Franchise fee: PHP 600,000

Estimated Investment: PHP 6M-7M

Outlet Term: 5 years

Royalty Fee: 7% of sales

Marketing Fee: 3% of sales

Minimum Lot Size: 70 SQM


  • Initial Set-Up
  • Building Construction
  • Furniture and Equipment
  • Pre-Operation Fees
  • Hiring and Training Process of Staff
  • Delivery Vehicle (Refrigerated)

Furthermore, here are the requirements needed upon applying for an application:

  • Letter of Interest (To Franchise)
  • Area Map of the possible location (Dimensions in SQM)
  • Fully filled-up Red Ribbon Application Forms

The application forms should be requested by sending Red Ribbon an email.

For their contact details, on the other hand, see below:

Phone Number (For Customer Care): (02) 8-898-7777 | Globe 0917-131-8000

Phone Number (For Deliveries): #8-7777


Main Office Address: 29th Floor, Jollibee Plaza, F. Ortigas Jr. Road, Pasig City, Philippines

Alternatively, you may also go to Red Ribbon’s official website to fill out their contact form to email them for inquiries.

The Advantages of Franchising Red Ribbon

  • Be a part of one of the biggest cake and pastry shop in the Philippines.
  • Receive continuous support from the Red Ribbon company.
  • Filipinos’ festivities always call for a cake or some sort of pastries which Red Ribbon can offer.
  • Benefit from Red Ribbon’s reputable brand name.
  • Receive nationwide reach marketing provided by the company.

Things to Consider Before Franchising Red Ribbon

  • Red Ribbon’s capital requirement is not suitable for all budget
  • Red Ribbon’s store calls for a larger space, which can be challenging to find depending on your chosen location.
  • Due to royalty and marketing sales, your revenue is cut short