Advantages Of Philippine Franchise Business

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.

The Philippines is considered the franchising hub of Asia, where franchising has experienced phenomenal growth in the past decades. 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. 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 $6.6 billion or five percent of the Philippine GDP and provides employment for one million Filipinos.

Alegria “Bing” Sibal-Limjoco, CFE (uFranchise Sales and Mgt., Inc.), chairman of the Philippine Franchise Association (PFA), cites franchising as the fastest method for business expansion.

“Simply speaking, franchising works because it duplicates an already successful business,” states Limjoco. “There is already a system in place, and all a franchisee must do is to follow that system — no more hit and miss.”

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. With the prime mover advantage, a franchise brand can penetrate and saturate the market faster, easily attaining market leader status.

While current trends point to food, health and wellness, and tourist-related as franchises with the most potential, Limjoco zeroes in on two key qualities for a franchisable concept: differentiation and profitability.

“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. “And of course, the concept must be profitable — that is the bottomline of business.”

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. “He must know where he is and where he wants to see himself in the future, and how he will go about it.”

To set up a franchise, the potential franchisor must undergo a franchise development process that will define the franchise structure. The franchisor can do this on his own if he is qualified enough, or consult with franchise experts at the Philippine Franchise Association.

“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. “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.”

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.

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.”

Above all, Limjoco reveals that most important factor for a franchise: the franchisor’s passion for his business.

“The franchisor must believe in his concept and want it to grow. He must take success into heart, and have the drive to do what it takes to achieve his goal. Then the commitment to the franchise will not feel like work, but second nature,” she concludes. – PhilStar

Upcoming Seminars For Philippine Franchise

Potential franchisors with business concepts that are ready for franchising can attend the “Franchising your Business” Seminar on July 4 (1-4 pm) and 5 (9-12nn) at the Philippine Franchise Association’s Franchise 2009: Philippine International Franchise Conference and Expo (PIFCE) at the SMX Convention Center. Entrepreneurs interested in acquiring a franchise are also invited to attend the “Invest in the Right Franchise Seminar on July 5 (1-5 pm).

If you want to be updated on more seminars and franchise opportunities, don’t forget to subscribe by entering your email address on the form found on the top right corner of the site.

Thank you and best regards to your franchise business.

  • esf

    do you have scheduled seminar this year in davao? i am interested to attend on the 2nd or thirs week of october

  • JIp

    You can visit the forum for the franchise seminars

  • glades santos

    where can i inquire for milo sundae ice cream

  • Vince Dimayuga

    me too i would like to franchise milo ice cream.
    Can you send in my email the details of MILO ICE CREAM FRANCHISE?

    Thank You

  • marilen bauzon

    i would like to inquire re to create a small business and how much the starting capital is this good in any place location… thank you…

  • Rafaela


    I would like to know if I am entitled for a franchise lotto ticket seller. What are the rules and the possible cost approximate.


  • dandie

    hi! i would like to know any information on how to get a franchise on MILO ICE CREAM. thanks!