Jollibee Foods Corp. (JFC) is taking full ownership and operational control of Tim Ho Wan’s North America business.
Tim Ho Wan, a wholly owned brand of JFC, has signed definitive agreements with its long-standing joint venture partner, WDI Corp., to realign their partnership across North America and Japan.
Under the deal, Tim Ho Wan will acquire WDI’s 30 percent interest in the joint venture that operates the Tim Ho Wan platform across North America, making it the sole owner.
Tim Ho Wan will pay WDI approximately $5.05 million for the North America realignment.
JFC said the transaction is an important step in accelerating Tim Ho Wan’s growth in one of the group’s priority international growth markets.
It provides Tim Ho Wan full ownership and control of the platform, with the ability to independently operate, develop, franchise and appoint franchise partners across the region.
Upon completion, Tim Ho Wan’s North America platform will include five stores in the US, comprising three company-owned stores and two franchised locations.
JFC said it plans further expansion through franchising.
‘North America is one of Tim Ho Wan’s most important growth markets, and taking full ownership of the platform gives us greater flexibility to invest in, expand and franchise the brand as we pursue its next phase of growth,’ Tim Ho Wan CEO Yeong Sheng Lee said.
In a complementary transaction, JFC said WDI would acquire Tim Ho Wan’s 30 percent interest in the joint venture that holds the unit franchise rights for the brand in Japan.
WDI will own 100 percent of the franchise rights vehicle responsible for developing and overseeing the Tim Ho Wan brand in Japan.
The publicly listed restaurant company headquartered in Tokyo will pay Tim Ho Wan about 166.1 million Japanese yen for the Japan realignment.
WDI currently operates four Tim Ho Wan stores in Japan: three in Tokyo and one in Osaka.
‘Japan is our home market, and this realignment allows WDI to take full ownership of Tim Ho Wan’s operations here, so we can fully apply our operating expertise and capabilities to grow the brand for Japanese diners,’ WDI president Ken Shimizu said.
‘This step lets each of us focus on the markets where we are best positioned to drive long-term value, and we’re excited about the road ahead together,’ he said.