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Jollibee was founded by Tony Tan Caktiong in 1975. At that time, it just an ice cream parlor. A year later, Jollibee had evolved into family business which called Jollibee Foods Corporation after owned 5 stores Jollibee’s restaurant in metropolitan Manila. Jollibee’s success in Philippine grabbed foreign business people attention and they believe it cans success against McDonald. Tan family has been motivate and grabbed this opportunity to go aboard. They began to play as a pawn in global chess and compete for global position in fast food industry. Soon they go into international, 2 major issues rose which is location and partner’s trust.
Australia is another opportunity for Jollibee to venture in fast food industry. Statistic has shown that Australian had spent on fast food has increased by 23% over the past four years. According to Commbank Signals study, increase in fast food consumption was due to financial crisis in 2009 (Ting, 2013).
There are several types of entry mode to use for Jollibee. Franchise is the most suitable ways to enter Australia market. Franchise enables to create business opportunity for Australian who wants to do business but does know how to start a business. Franchise is the best option because Jollibee will guild them how set up their own restaurant and provide training. Griffith University had conduct a survey proven that 90% if the franchisees were operating profitability (Frazer, Eeaven and Bodey, 2012) and Australian would prefer to buy franchise license which the risk is lower for them. Another reason of using franchising was Jollibee had tried another types of entry mode such as joint venture and partnership and failed in the past because lack of trust and lack of understanding of location th...

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...daily operation and management by themselves as they are the business owner in their town. Franchisee is a businessperson and has the right to manage people in their own way and they only follow Jollibee’s operating manual guideline. However Jollibee able to monitor achievement been made by the business and identify areas of poor performance. Jollibee can have regular updates to ensure that franchisee doing things right and sticks to Jollibee’s procedure. This may help Jollibee to reduce potential failure as they work as a whole network.
In conclusion, Tingzon need to select new franchisee more cautiously and do not repeat the mistake Jollibee had made in early years. Franchise will reduce the risk and cost for Jollibee but it also need to look after it brand image on franchised outlet. There is a great market opportunity to expand more outlet in Australia.

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