KERRIMO | Philippine Franchise

To apply for a Kerrimo franchise, you'll need to explore options outlined by Kerrimo. You can potentially find more information on their Facebook page. The initial capital investment for a Kerrimo franchise is Php 200,000, with a franchise fee of Php 100,000, and the franchise agreement is for a 3-year term.

Here's a general outline of how to proceed:

1. Explore Kerrimo: Visit their Facebook page or website for more information about the franchise model, products, and requirements. 
2. Review Franchise Agreement and FDD: Familiarize yourself with the terms and conditions of the franchise agreement and the Franchise Disclosure Document (FDD), if available. 
3. Contact Kerrimo: Reach out to Kerrimo directly to express your interest and inquire about the application process. You can likely find their contact information on their website or social media pages. 
4. Submit Application: Follow Kerrimo's instructions for submitting your application, which may include completing an application form, providing necessary documents, and/or attending an informational meeting. 
5. Review and Sign Franchise Agreement: Once your application is approved, you'll need to review and sign the franchise agreement, which outlines your obligations and the franchise requirements. 
6. Secure Financing: You'll need to secure the necessary capital investment to cover the franchise fee and operational costs, which is Php 200,000 for Kerrimo. 
7. Prepare for Launch: Work with Kerrimo to prepare for your franchise launch, including site selection, staff training, and marketing.

The Kerrimo Legacy: More Than Just a Snack

The story of Kerrimo began in 1998, introducing a novel way for Filipinos to enjoy their merienda on the go. The core idea was simple yet revolutionary for its time: combine popular street food snacks like french fries, hotdogs, or nuggets with a drink, all neatly packaged in a single, easy-to-hold cup. This immediately resonated with the fast-paced lifestyle of students and workers. The name itself, a playful take on the Filipino phrase "kayang-kaya mong dalhin" or "you can carry it," became a catchy and memorable brand identity.

For years, Kerrimo built its reputation on this convenience and its tasty offerings, particularly its cheese-flavored fries. Then, in 2011, a significant development occurred: Arjolan Premiere Corporation, initially one of Kerrimo’s franchisees, acquired the brand. This move injected new energy and resources, propelling Kerrimo into a new phase of expansion. The new management didn't just rest on the brand's laurels; they actively worked to broaden its market coverage, leading to its current impressive footprint across Luzon, Visayas, and Mindanao. This strategic evolution underscores Kerrimo’s ability to adapt and grow, ensuring its continued relevance in a competitive food Kiosk market.

The product line itself has also evolved. While classic cheese-flavored fries remain a staple, Kerrimo now offers an expanded menu catering to diverse tastes. This includes various fry flavors like sour cream, barbeque, and hot BBQ, alongside options like hotdogs and nuggets. More recently, new items such as Chicken Strips, Mozzarella Sticks, Potato Balls, Rosti Bites, Potato Wedges, Pastry Loops, and even Mini Cakes have been introduced, showcasing a commitment to innovation and responding to changing consumer preferences. This continuous development is a key factor in its sustained appeal.

Why Kerrimo? Unpacking the Franchise Opportunity

For entrepreneurs looking to enter the food industry, particularly the popular food cart segment, Kerrimo presents a compelling case. Several factors contribute to its attractiveness as a franchise.

A Proven Concept with Strong Market Fit: The core "food and drink in one" concept is inherently suited to the Filipino lifestyle. Whether it's students grabbing a quick snack between classes, office workers needing a midday pick-me-up, or mall-goers wanting something easy to eat while shopping, Kerrimo offers unparalleled convenience. The attractive cups are also a hit with kids and the young-at-heart.

No Royalty Fees: This is a significant and often highlighted advantage of a Kerrimo franchise. Unlike many other franchise systems that require ongoing royalty payments based on sales, Kerrimo franchisees get to keep all their profits. This can substantially impact the overall profitability and financial health of the business. However, it's worth noting that a monthly marketing fee of PHP 1,000 is applicable, which contributes to brand-wide promotional efforts.

Comprehensive Franchise Package: Kerrimo offers what can be described as a turnkey opportunity, especially appealing for first-time business owners. The franchise package, with an estimated investment cost ranging from PHP 250,000 to PHP 350,000 (inclusive of the PHP 100,000 franchise fee), is designed to get franchisees up and running relatively smoothly. Inclusions typically cover:

• Construction of the cart, kiosk, or stall (depending on the chosen format)
• The franchise fee itself
• Essential equipment:
  • 1 unit of 9 cu ft Sanden Freezer
  • 2 units of 8L Cap Deep Fryer
  • 1 unit of 8L Tab Juice Dispenser
  • 1 unit of Range Hood
• A complete set of utensils
• Initial inventory worth PHP 10,000 for pre-opening
• Four staff uniforms
• Training for two staff members
• In-house marketing support
• A set of office supplies and cleaning materials

This comprehensive package aims to reduce the initial legwork and uncertainty for new franchisees, providing them with the foundational elements needed to start operations.

The Financial Blueprint: Investing in Kerrimo

Understanding the financial commitments is crucial before embarking on any franchise venture. For Kerrimo, the key figures are:

• Total Estimated Investment: PHP 250,000 to PHP 350,000. This range accounts for variations in store type (cart, kiosk, or stall), location-specific costs, and other initial setup expenses.
• Franchise Fee: PHP 100,000. This is a one-time fee included in the total investment.
• Marketing Fee: PHP 1,000 per month.
• Franchise Term: Three (3) years. The agreement is renewable upon mutual consent between the franchisor and franchisee.
• Required Space: A minimum area of 5 square meters (or 2m x 2.5m) is needed for the operation.

Payment Terms for the franchise are structured, providing some phasing for the financial outlay:

• PHP 10,000: For the site evaluation fee.
• PHP 40,000: Settled during the signing of the franchise agreement.
• PHP 60,000: Payable six (6) months after the store opening.
• 50% of the package investment: Payable upon approval of the store design and construction cost.
• Remaining Balance: Payable upon store turnover and opening.

It's important for prospective franchisees to note that while Kerrimo provides a substantial package, the processing of legal documents, such as Bureau of Internal Revenue (BIR) certificates and other necessary government permits, is the responsibility of the franchisee. This underscores the importance of understanding Philippine franchise laws and regulations to ensure full compliance from the outset.

Your Journey to a Kerrimo Franchise: The Application Roadmap

Becoming a Kerrimo franchisee involves a structured application process designed to ensure that both parties are a good fit. Here’s a step-by-step guide:

1. Secure Location Approval: This is a critical first step. The proposed location's viability is paramount. Aspiring franchisees often need to submit details of the prospective site, including landmarks, an assessment of market potential (e.g., proximity to schools, terminals, markets), and contact information for the site. This initial step often involves thorough market research for location to identify high-traffic areas with good visibility.
2. Submit Letter of Intent (LOI): Formally express your interest in franchising Kerrimo by sending an LOI via email to their official franchise contact ([email protected]).
3. Submit Updated Resume: Along with the LOI, provide an updated resume with a recent picture. This should be sent to the Kerrimo Head Office.
4. Fill Up Franchisee Evaluation Form: Kerrimo provides an evaluation form that applicants must complete. This form, along with other required documents (typically photocopies of two valid IDs and pictures of the proposed location), is subjected to a screening process. It’s important to understand that this isn't just a formality; the company uses this to gauge if an applicant possesses the qualities of a successful franchise owner, such as business acumen, financial capacity, and commitment.
5. Face-to-Face Meeting with Franchisor: Qualified applicants will be invited for a meeting with the franchisor. This is an opportunity for both parties to discuss expectations, answer questions, and further assess compatibility.
6. Settle Franchise Fee: If the application progresses positively after the meeting, the next step is to pay the franchise fee (PHP 100,000 as of the latest available information).
7. Complete and Submit Requirements to Lessor: Concurrently, finalize all necessary documentation and requirements for leasing the approved store location.
8. Sign Contract with Kerrimo and Pay Down Payment: Once lease terms are settled and the franchise fee is paid, the formal franchise agreement is signed with Kerrimo, and the agreed-upon down payment for the package is made.
9. Store Opening and Complete Franchise Payment: This involves the construction/setup of the outlet, staff training, and finally, the grand opening. The remaining balance of the franchise package is typically settled around this time, often on or before the store opening day.

Required Documents generally include:

• Letter of Intent
• Completed Franchisee Evaluation Form
• Photocopy of two (2) valid IDs
• Picture of the prospect location with detailed information (landmarks, market potential, site contact person and details)

Due Diligence: Looking Beyond the Brochure

While the Kerrimo franchise package offers numerous advantages, like any business venture, it's crucial to conduct thorough due diligence.

The Upsides:

• Profit Retention: The absence of a monthly royalty fee based on sales is a major plus, allowing franchisees to keep a larger portion of their earnings.
• Comprehensive Support: The initial package covers many essential aspects, from cart construction to initial inventory and staff training, which can ease the burden on new entrepreneurs.
• Established Brand: Kerrimo is a recognized name with a proven concept and a strong customer recall, reducing the challenges of building a brand from scratch.
• Low-Cost Supplier for Inventory: Access to the franchisor's supply chain for inventory can mean more competitive pricing for raw materials.

Points to Consider:

• Initial Investment: While offering good value, the total investment cost (PHP 250k-350k) might be relatively higher compared to some other basic food cart franchises in the Philippines.
• Legal Documentation: The franchisee is responsible for securing all business permits and legal documents. This requires time, effort, and an understanding of local government requirements.

Prospective franchisees should meticulously review all documentation provided by Kerrimo. It is highly advisable to read the franchise agreement thoroughly, possibly with the assistance of a legal professional specializing in franchise law. Understanding all terms, conditions, obligations, and support systems is paramount before committing.

Kerrimo's Enduring Recipe for Success in the Philippine Food Scene

Kerrimo’s continued presence and growth are not accidental. They stem from a keen understanding of the Filipino consumer and market dynamics. The deep-seated Filipino love for merienda (afternoon snack) and accessible street food provides a fertile ground for brands like Kerrimo. The "on-the-go" culture, particularly in urban centers, further amplifies the demand for convenient and quick food solutions.

The innovative cup design remains a significant differentiator, offering a practical advantage that competitors often emulate but seldom surpass in terms of brand association. The "Carry Mo" tagline has ingrained itself in the consumer psyche, creating strong brand retention.

Moreover, Kerrimo's commitment to research and development, evidenced by its expanding menu, shows an adaptability crucial for long-term success. By introducing new products, they cater to evolving tastes and prevent brand stagnation, keeping the offerings fresh and exciting. This willingness to innovate, coupled with a strong operational model and a franchisee-friendly approach (notably the absence of royalty fees), positions Kerrimo as a resilient and attractive player in the Philippine food franchise landscape.

For Filipino entrepreneurs, particularly those seeking a business with a recognized brand, a proven system, and strong market appeal, Kerrimo offers a tangible pathway. Its journey from a novel concept to a nationwide presence, weathering market changes and emerging stronger, is a compelling narrative of entrepreneurial success—one that new franchisees have the opportunity to join. The blend of a unique product, strategic expansion, and a supportive franchise structure suggests that Kerrimo is well-poised for continued growth and success across the archipelago.