MANILA, Philippines - Fast food giant Jollibee Foods Corp. will soon operate popular US baked goods and coffee chain Dunkin' Donuts in China.
In a disclosure to the stock exchange, JFC said its subsidiary Jollibee Worldwide is teaming up with Jasmine Asset Holding Ltd. to form a company to own and operate the Dunkin' Donuts chain in China.
Jasmine Asset Holding is a subsidiary of Asia-based investment firm RRJ Capital.
Under the joint venture agreement, Jollibee Worldwide will own 60 percent of the business, while 40 percent will be owned by Jasmine.
Jollibee and Jasmine have committed to investing up to $300 million in the joint venture company. Of the amount, Jollibee Worldwide will contribute up to $180 million.
Jollibee Worldwide will also be directly responsible for handling the Dunkin' Donuts business' day-to-day operations in China.
Jollibee and Jasmine have also agreed to execute a master franchise agreement with Dunkin' Donuts once the joint venture company is formed.
Under the master franchise agreement, the joint venture will have the exclusive right to develop Dunkin' Donuts in the following territories in China - Hong Kong, Macau, Fujian, Hunan, Jianxi, Guangdong, Hainan, Guanxi, Beijing, Tianjin, Hebei, Shangxi, Chongqing, Guizhou, Sichuan, Yunan, Heilongjiang and Jilin.
JFC said the joint venture will open and operate a minimum of 1,459 shops in China over 20 years.
Dunkin' Donuts is a leading baked goods and coffee chain, with 11,123 stores worldwide. It has 7,941 franchised stores in the US and 3,182 stores in 34 countries.
JFC operates the Philippines' largest food service network, with 2,283 restaurants. It also operates 603 stores abroad.
Dunkin' Donuts is not the first time JFC has invested overseas. It has 50 percent interest in joint ventures for Highlands Coffee in Vietnam and the Philippines, Sabu in China and Pho 24 in various Asian countries.