JFC takes full control of Tim Ho Wan’s North America business

MANILA, Philippines — Jollibee Foods Corp. (JFC) has officially taken full control of Tim Ho Wan's North America business. Tim Ho Wan, a wholly owned subsidiary of JFC, has finalized agreements with its previous joint venture partner, WDI Corp., to merge their partnership in North America and Japan. As part of the deal, Tim Ho Wan will assume ownership of WDI's 30 percent stake in the joint venture, which manages the Tim Ho Wan brand in North America, making it the sole proprietor.

Tim Ho Wan will pay WDI around $5.05 million for this North American realignment. JFC stated that this transaction is a crucial step in accelerating Tim Ho Wan's growth in one of the company's key international markets. It grants Tim Ho Wan complete ownership and control over the platform, enabling independent operations, development, franchising, and appointment of franchise partners throughout the region.

Following the completion of the deal, Tim Ho Wan's North American presence will consist of five stores in the US - three owned by the company and two franchised. JFC intends to expand further through franchising. "North America is one of Tim Ho Wan's most vital growth markets, and securing full ownership of the platform empowers us with greater flexibility to invest, expand, and franchise the brand as we enter the next phase of our growth," remarked Tim Ho Wan's CEO, Yeong Sheng Lee.

In a related matter, JFC disclosed that WDI would acquire Tim Ho Wan's 30 percent interest in the joint venture responsible for the Tim Ho Wan franchise rights in Japan. WDI will become the sole owner of the franchise rights vehicle, tasked with fostering and overseeing the Tim Ho Wan brand in Japan. The publicly traded Japanese restaurant company will pay Tim Ho Wan approximately 166.1 million Japanese yen for this Japanese realignment.

WDI already runs four Tim Ho Wan outlets in Japan: three in Tokyo and one in Osaka. Ken Shimizu, WDI's president, expressed his enthusiasm for the partnership change, stating, "Japan is our home market, and this realignment allows us to fully leverage our operating expertise and capabilities to propel the brand among Japanese diners."

He added, "This move enables each of us to concentrate on the markets where we are best positioned to generate sustained value, and we're looking forward to the future ahead together."