Philippine Franchise Association (PFA), cites franchising as the fastest method for business expansion. He must know where he is and where he wants to see himself in the future, and how he will go about it. The Philippines is considered the franchising hub of Asia, where franchising has experienced phenomenal growth in the past decades. Of the entire franchising sector, food brands make up 41 percent, service establishments 32 percent, and retail outlets 27 percent. In the Philippines, where over 45 percent of retail sales in shopping centers are from franchised enterprises, franchising contributes $6 billion or five percent of the Philippine GDP and provides employment for one million Filipinos. There is already a system in place, and all a franchisee must do is to follow that system – no more hit and miss. The franchisor can do this on his own if he is qualified enough, or consult with franchise experts at the Philippine Franchise Association. Franchising, a proven business model with a 90 percent success rate, makes use of other people’s money, time and organization, allowing for rapid expansion.
We have posted this topic before but we want to add something up about the advantages of Philippine Franchise and also give some seminar and conference schedules that you can attend if you want to get into franchising in the Philippines. Comparing franchising to a marriage, Limjoco emphasizes the importance of screening potential franchisees thoroughly: “Franchising must be done with the right partner; it should stay in business for the longest time. Simply speaking, franchising works because it duplicates an already successful business,” states Limjoco. From only about 50 brands in the 1980s, there are now 1,000 brands franchised in the Philippines (68 percent of them homegrown concepts), in five principal franchise sectors: fastfood; retail clothing; cafes, confectioneries and bakeshops; hospitality and wellness; and food carts. To set up a franchise, the potential franchisor must undergo a franchise development process that will define the franchise structure. Alegria “Bing” Sibal-Limjoco, CFE (uFranchise Sales and Mgt. All business endeavors must also be registered at the Department of Trade and Industry (DTI) for single proprietorship and at the Securities and Exchange Commission (SEC) for corporations.
Your product or service must stand out; there must be something unique about the idea you are franchising and you must look for your niche,” notes Limjoco. For those considering franchising, it is recommended that the business must have been running for at least a year already, to be able to have a benchmark for future franchises. The franchisor must have a solid business plan,” Limjoco adds. While there is no mandatory registration exclusive for franchising, it is important to get a trademark for your idea at the Intellectual Property Office to claim ownership of your brand,” advises Limjoco. And of course, the concept must be profitable – that is the bottomline of business. The potential franchisor can then lay down the franchise agreement, develop the franchise operations manual, and then begin franchise marketing and sales, either through a franchise broker or their own department. With the prime mover advantage, a franchise brand can penetrate and saturate the market faster, easily attaining market leader status.