How to Franchise: Mang Inasal

The key to most Pinoys’ heart is through the stomach. Who could resist the tempting native-style chicken inasal coupled with unli-rice? That’s where Mang Inasal holds the key to continuously champion the people’s cravings.

Read on to find out relevant information on how to franchise this inasal chicken restaurant.

About Mang Inasal

Started on a 250-square meter space at Robinson’s Mall Carpark-Iloilo in December 2003, Mang Inasal is the brainchild of then 26 year-old Edgar “Injap” Sia. A Hiligaynon for “Mr. Barbeque”, Mang Inasal’s simple concept of authentic fusion of traditional Filipino cuisine captured the taste and appetite of many Filipinos with its trademark “nuot-sarap” grilled chicken and “unlimited” rice.

It became a booming success when it opened in Visayas and Mindanao for franchising beginning 2005 and had its breakthrough in Metro Manila by 2006.

At present, Mang Inasal is a wholly owned company by Jollibee Foods Corporation (JFC), the country’s largest fast food chain. Mang Inasal currently boasts of a store count of more than 500 outlets nationwide. 

Mang Inasal Franchise Fee

How much is the franchise fee of Mang Inasal?

A full franchise unit of Mang Inasal requires an investment ranging from P12 Million to P18 Million.

The actual amount is dependent on the approved store type and size. The store model will depend on the location and target market, and the company prefers locations that are in an accessible, high traffic commercial or residential area.

Stores should have minimum floor areas of 250 square meters, with frontage of at least 10 meters.

Details of the specific investment costs are as follows:

Setup Fee

Upon approval of the franchise application, a set-up fee of P1.2 Million will initially have to be paid by the franchisee. This amount is non-refundable and is VAT exclusive.

The setup fee consists of Mang Inasal’s initial support and assistance in setting up an outlet in accordance with the company’s standard requirements, such as:

• Assistance in hiring of store’s management team
• Initial training
• Project administration (i.e., construction, outlet-set up for new)
• Systems set-up
• Site development (site assessment, sourcing, acquisition)
• Franchisee screening and other initial services

Design Fee

Franchise applicants also need to pay a design fee amounting to P160,000.00 (net of VAT) which includes the following services:

• Layout
• Perspectives and Elevations
• Architectural Designs
• Engineering plans: electrical, mechanical, sanitary and plumbing

Royalty Fee & Advertising Fee

In addition to the above, there are other costs that will have to be paid by the franchisee every month, such as:

• Royalty or Service Fee (5% of net sales)
• Advertising Fee (3% of net sales)

The royalty fee and advertising fee are billed monthly to the franchisee and must be paid every month.

Franchise Store Types

There are four (4) types of Mang Inasal stores that may be availed by potential franchisees.

1. Free Standing Store

This is a stand-alone and a two-level store with sufficient parking space.

2. Mall Store

This store is located within the vicinity of a mall.

3. In-Store

This store is located within a building with adjacent tenants on both sides.

4. Food Court

This store is located inside the facility of the mall or a structure adjacent to the food vendors and provides a common area for self-serve dining.

Applicants must offer and propose a site and Mang Inasal’s job is merely to assess and approve the proposed layout. According to the company, they are not in charge of providing a location to franchisees.

This also means, during the application process, the prospective franchisee should already have a proposed store location. In fact, a layout map and photos of the site are required to be submitted during application.

Franchise Package Inclusions

The total investment cost of P12 Million to P18 Million already includes all these assistance and support activities from Mang Inasal:

Franchise Training Program
Operational System
Marketing Assistance
Store Opening Assistance
Local Store Marketing
Marketing Collaterals
Manpower Assistance
Initial training of Restaurant Managers and Assistant Restaurant Managers
Training of outlet team in coordination with an accredited Third-Party service provider
Store Development Assistance
Design of the Store
Project Management

Contract Period and Return on Investment

A Mang Inasal franchise agreement lasts for ten (10) years and is renewable upon the discretion of the franchisor, considering the overall store performance.

Like any regular business, the estimated Return of Investment (ROI) will depend on several factors such as sales, market potential investment, and the ability of the franchisee to control the store’s operating expenses.

It takes an average of 45 to 60 days after the approval of franchise application before the restaurant becomes fully operational.

Eligibility Requirements

Mang Inasal requires franchisees to:

• Be highly engaged, business-oriented, success-driven entrepreneur with strong desire to venture and invest in a long term business partnership with Mang Inasal
• Possess the willingness and capability to learn the business
• Enjoy working, communicating, and relating with employees and customers

What’s even better news is that Mang Inasal does not require past franchise or restaurant experience. Although previous restaurant management is a plus, the company provides franchisees with basic business management training.

Mang Inasal allows businesses to apply as franchisee. They must either be a Sole Proprietorship or a Corporation. For corporate applicants, the principal owner must own at least 20% of the company’s outstanding shares and must have at least 67% voting rights in the corporation.

Franchise Application Process

If you have the financial capacity and qualifications to franchise, you’re probably ready to apply for a Mang Inasal franchise. Here are the application steps:

1. Prepare the initial required documents:

• Letter of Intent – address to Mang Inasal Main Office at Pioneer Highlands North Condominium, Pioneer Avenue corner Madison St., Mandaluyong City 1550, Philippines (download form here)
• Vicinity Map – indicate lot and nearby landmarks by using Google Maps screen shot of Map & Satellite View at 100m scale and ensure to mark on the map your proposed location
• Photos of Proposed Site – 360 degrees view: Front view (100m away & 300m away) / Across street / Both sides of street
• Lot Plan plus Layout – indicating area for lease with measurements / dimensions
• Site Development Map / Floor Layout – applicable to Malls only
• Lease Offer/Details – if applicable

2. Submit the required documents above to Mang Inasal:

Via Postal Mail:
Franchising Division
Room 714, 7th Floor, Globe Telecom Plaza 2
Madison St., Mandaluyong City 1550, Philippines

Via EMail
Email scanned copy of all documents to: mi.franchising@manginasal.com

3. For 30 to 60 days, Mang Inasal will review and evaluate the application. If approved, the franchise will be awarded to the applicant within 2 to 3 weeks. The Franchise Agreement will then be signed.

4. After signing the franchise agreement, the franchisee will undergo a training program intended to expose the franchisee to Mang Inasal’s store operations. The training program includes classroom courses, seminars, and hands-on training in an existing Mang Inasal outlet.

Mang Inasal Franchise Contact Details

If you’re willing to learn more, it’s best to contact this representative from Mang Inasal:

Mang Inasal Franchising
Telephone Number: +63-2-8724-1111 local 6567
Mobile / Cellphone Number: +63-949-889-7079

Click here to view other franchising opportunities: Complete list of Philippine companies available for Franchising

Information and Image Sources: Official Company Website (www.manginasal.com) and Facebook page