Bibingkinitan`s Franchise Fee is Php 200, 000.
There are Three types of Franchise Investment
which are the following:
1. Food Cart If you prefer to have food carts franchise, which cost a total of Php 500,000
investment.
2. Counter or Kiosk type This type of franchise is ideal for business owner with existing
stalls or shops. The total franchise investments for this type is ranging from Php 700,000
to Php 900,000.
3. In-Line Store Type- This type of franchise is typical for those who are planning to set
their locations in malls or in the road side. The overall franchise cost for this type of
investment is starting from Php 900,00 that may reach up to Php 1,200,000.
The required store measurement for Bibingkinitan should have a minimum of 20 to 50
square meters.
Franchise Package Inclusions:
Franchise fee (Varies depending on your choice of investment that you wish to avail)
Security Deposit worth Php 100,000
Estimated store construction which cost approximately Php 300,00 to Php 500,000 which
varies as it is dependent on the size of your store.
Equipment worth Php 200,000.
Small wares and utility kit.
Target Place of business
Our taget place of business is the Phoenix Market city which is one of the largest shopping malls
in India, situated in Kurla, Mumbai. It was developed by The Phoenix Mills Co. Ltd. Spread
across 4.1 million sq ft the mall includes 2.1 million
sq ft of retail space which is the largest mall in India
in terms of area. It houses 600 stores with domestic
and foreign brands, PVR Cinemas which has 14
movie screens and 70 restaurants. Its sister mall in
Mumbai is High Street Phoenix, located in Lower
Parel. It is near the Kurla railway station and
Vidyavihar railway station and the nearest bus stop is Kamani.
We are considering to put up or business on the
second floor of the mall along Funzone, Storm- 9D
Entertainment, Timezone and many more interactive
store which we believe will be cater by our quick
bite type of business.
Rent
Retail real estate is most expensive in Mumbai,
followed by New Delhi and then Bangalore. Rents are decided based on the floor on which the store
is located. As a thumb rule, the ground floor commands a premium and is generally the most
expensive. It is leased only to known international and national level retailers. The rent for the first
floor is about 20-25% lesser than the ground and the second floor is about 30% lesser than the first.
For all Mumbai properties you can expect an average mall rent (averaged over all floors) per square
feet per month to be around Rs. 150(+/- 10%) or roughly equivalent to Php 115 per square meter per
month. The ground floors rent expense on the Phoenix Mall in Mumbai is Rs. 150 multiply by 20% is
equivalent to 120 which is the rental for the first floor. The price of the second floors rental fee is
30% lower than the first so we multiple Rs. 120 to 70% and we get 84 rupee or equal to 64.68
Philippine peso per square meter.
Bibingkinitan franchise occupies an average 20 -50 square meters in all of their branches in the
Philippines. This will give our proposed business a rental fee ranging from Php 1294 up to Php 3234.
The rental fee is lower than the average Php 30,000 up to Php 50,000 fee in the Philippines.
Wage
We intend to hire Indian employees to staff the franchise rather than send Filipino employees in
India. The reason is because of the low minimum wage in India that varies from 160 rupees (Php
123.2) per day in Bihar to 423 rupees (Php 325.71) per day in Delhi. The minimum wages are set
according to Minimum Wages Act, 1948. The Philippines minimum wage for an employee ranges
from Php 466 daily non-agricultural wage in Mimaropa to Php 491 daily non-agricultural wage
in Metro Manila. It is a practical decision to hire employees there and will also be cost beneficial. The
franchise needs 2 to 3 employees to operate the business daily. Therefore, the company will need to
pay from Php 369.9 up to 997.13 per day or Php 11094 up to 29,913.9 per month.
Target Date of
Item Cost Units Total
Franchise Fee 900,000 to 1 900,000 to
1,000,000 1,000,000
Rental Expense Php 1294 up to Php One month deposit, 3882 up to 9702
3234 per month two months
advance
Wages 123.2 up to 325.71 3 employees 11094 up to 29,913.9
per employee working in 30 days
per month
Projected cost of starting up the business
