how to franchise a business in the philippines

How to Start a Franchise Business in the Philippines

• 1. Attend Franchising Seminars This step should always be your starting point. ...
• 2. Conduct Comprehensive Research Armed with information from PFA seminars, you should now have an idea on how to approach your research on the specific industry from which you plan to get a franchise. ...
• 3. Incorporate Your Business ...
• 4. Identify the Franchises to which You Are Interested ...

Full Answer

How much does it cost to start a franchise in Philippines?

10 Best Franchise Business Opportunities in the Philippines Under P500,000. If you’re on board with starting a franchise business, here are the 10 cheapest franchise business opportunities you can get into in the Philippines. 1. Food Cart Franchise. Franchise capital: Php 20,000 – Php 30,000

How to check the legitimacy of a Filipino Franchise?

Another way to verify the legitimacy of a franchise brand is to check its membership with reputable franchise groups in the Philippines. You may check the member directory of the Philippine Franchise Association, Association of Filipino Franchisers, Inc., or Filipino International Franchise Association. 7. Franchisor’s business operations system

What is the history of franchising in the Philippines?

The franchising model would then boom in the 1950s-1960s as the concept expands to include branded goods and service franchises. Fast forward to the 1990s, Samie Lim, widely considered the father of Philippine franchising 5, would learn of franchising from the conferences he attended in the USA and Europe.

How to put up a business in the Philippines?

Here are a few basic steps that might help you on how to put up a business in the Philippines: 1. Allocate ample time for brainstorming for business ideas. It is very important to note that brainstorming for business ideas is very crucial for any business aspirants who wish to start on their entrepreneurial journey.

What are the franchising requirements in the Philippines?

Required Documents to Be Submitted to the FranchisorLetter of Intent to Franchise. A Letter of Intent is used in most business transactions like franchising. ... Application Form. ... Site Location Proposal. ... Business Name Registration (Department of Trade and Industry) ... Barangay Clearance. ... Business or Mayor's Permit.

How much is a 7 11 franchise?

- Initial Store Supplies (Php 170,000.00), Initial Merchandise (Php 800,000.00), Construction Cost (approximately 2.03 Million Pesos), Advance Rent and Deposit (Depending on the lease terms) are settled before opening the store - Total Cash Outlay will range from 3.5 Million Pesos to 5 Million Pesos.

Is franchise business good in Philippines?

Proven business model and strategy: Franchises in the Philippines have reached 90% success rates in comparison to retail businesses, which fair at only 25%. Literally, you only need to run your business with the same procedures, policies, practices, and systems laid out by the franchisor.

Can I franchise my business myself?

You may need to register your franchise according to the state you live in. Some states require registration and a franchise fee, while others require that you file your franchise disclosure document with the state or simply obtain a registered trademark for it.

How much is a Petron franchise?

To start your Petron franchise, you need to have your own lot to build your gas station on, as well as a total investment cost of P1 million to P2. 5 million, exclusive of a cash bond of P100,000. Once you're done, expect your fortune to trickle like black gold.

How much is Inasal franchise?

INVESTMENT DETAILSItemsDetailsRoyalty Fee5%Advertising Fee3%System Enrollment FeePhp 1,200,000.00Estimated Capital InvestmentPhp 15 to 22 Million2 more rows

How much is a Jollibee franchise?

Upon receipt of application, this will take 1 month of processing. However, submission of an application form does not obligate you or Jollibee in any way. It is just the first step in the application process, which is an evaluation of your proposed location. Jollibee franchise ranges from Php 25-35 Million.

What are the top 5 franchises in the Philippines?

Some of the best franchises in the Philippines include Jollibee, McDonald's, Phoenix Petroleum, TGP, 7-11, and Bayad Center. These businesses offer high-quality products and services (some with affordable prices), making them popular with consumers.

What business can start with 50K?

What Are the Best Businesses Under ₹50000?Tiffin or food delivery services. Tiffin and food delivery is a profitable business under ₹50,000. ... Food Stalls or Food Trucks. ... Tutoring. ... Jam and Pickle Making. ... Wedding Planners or Event Managers. ... Photography. ... Hand-Made Clothes and Accessories. ... YouTube.More items...•

How do franchise owners get paid?

How do franchise owners get paid? Franchise owners can pay themselves a salary or depending on their business entity, they may be able to take a draw from their accumulated equity.

What are the 4 ways to become a franchisee?

4 ways to become a franchiseeFigure out your passion and skill set. Buying a franchise business shouldn't just be about facts and figures. ... Prepare to buy-in. ... Investigate franchise brands. ... Speak to experts and existing franchisees.

What are the seven benefits of franchising?

Starting a Business: 7 Benefits of Franchising Your BrandCreates Capital. Franchisees use their own capital. ... Limited Liability. The franchisor avoids a lot of responsibility. ... Access to the Best Talent. ... Speeds up Expansion. ... Motivation to Succeed. ... Brand Building. ... International Expansion.

How much does a 711 owner make a year?

The estimated total pay for a Franchise Owner at 7-Eleven is $140,208 per year.

How much does a 7-Eleven owner make a year?

Is owning a 7-Eleven profitable? In terms of profit, 7-Eleven franchise owners can average $50,000 – $75,000 for their salary.

How much money do 7/11 franchise owners make?

How much does a 7-Eleven store owner make? Well a lot depends on what you are selling as some items have much higher margins, but a very approximate estimate is 5% of store sales so a store doing $1,000,000 in sales would generate about $50,000 for the owner.

How much does 711 make a year?

Average 7-Eleven hourly pay ranges from approximately $10.50 per hour for County Clerk to $19.54 per hour for Store Manager. The average 7-Eleven salary ranges from approximately $15,000 per year for Order Administrator to $73,485 per year for District Manager.

What is franchising?

In the simplest term, franchising means acquiring a right from the business franchisor to market the same product or services of the owner, includi...

What is the future of franchising?

The economic changes play a part in the franchising landscape. For as long as the thriving economy is there and businesses are doing well, franchis...

Why is franchising important?

Franchising allows businesses to expand the business in a way that they do not use their resources. This system also gives opportunities to aspirin...

How does franchising work?

Typically, a business decides first whether to go franchising or not. If it is a viable option, they will seek a franchise developer’s help to comp...

How to invest in a franchise?

1. Identify what franchise is suitable for you. It’s not necessarily about knowing what specific brand you want to invest in, but you should understand how much you are willing to spend and what type of business you want to manage. While planning, you should consider three things. First is the budget.

What is franchising?

Franchising means buying the rights to sell or distribute the products and services of an established business. The fees and royalties paid include the use of logos, trademarks, business models, and operating systems.

What is product franchising?

A product franchising arrangement is similar to a supplier-dealer relationship. Franchisees can use the trademarks and sell the products, but it comes with the necessary fees. They are also required to buy a minimum number of products to get franchising rights.

Why do franchisors charge fees?

Fees come with franchising as they are inherent to buying the rights to the brand and of course the processing. Depending on the value of the business, the summary of fees could soar up from thousands to millions. The bigger the business name, the more expensive the fees you need to pay.

Why is franchising business format so complicated?

Business format franchising is much more complicated than the previous arrangements because it involves a sharing of methodologies, support, and operating systems. Aside from selling the products/services, it also entails access to business models and a variety of support such as location search, quality control, training of personnel, and marketing efforts.

What to do once approved for franchising?

Once approved, the next big thing to do is manage the business well .

Why is it important to check the legitimacy of franchisors?

Checking the legitimacy of these franchisors will ensure you don’t sink your money into a shady deal, also it will ensure that you are operating within the law.

How to handle a franchise business?

You must choose a business concept that is well-established and tested over time. You cannot handle a business franchise just by downloading necessary manuals; you need thorough hands and minds as your back-up. Therefore, make sure you understand how your team prepared the overall business franchise program.

What is business format franchise?

In a business format franchise, the franchisor does not only allow the distribution of the products but also gives franchisees the right to the franchisor’s business concept or model. Here, the franchisor gives the franchisee access to its overall business methodology.

What is franchising?

In simple terms, franchising means getting the right to operate a business from the franchisor for a fixed price, which includes the usage of the trademark and the business model. The interested party is the franchisee and the owner of the business is the franchisor.

What is a trade name franchise?

Also known as the trade name franchise, this type of franchise grants to the franchisor the power to give rights to every franchisee in terms of selling its products and the use of trademarks for a fee.

What is a franchise agreement?

The Franchise Agreement (FA) document is the paper that specifies all the duties of the franchisor and the franchisee, duration, and the provisions.

Why do franchisors collect financial information?

Franchisors continuously collect financial information from their franchisees in order to improve its business model, and to audit the royalty payments ( if there is).

Why is franchising important?

Any aspiring entrepreneurs who want to venture into franchising are possible because it lets them start a business without the risk of debt or the cost of equity.

Why You Need To Register Your Business When Franchising

When franchising a business, there are three parties that need your complete business registrations. These are:

Things To Do Before Registering a Franchise Business in the Philippines

You don’t have to rush the registration of your franchise business. In fact, there are a few things that you have to do first before you even think about registering. These are:

How To Register Your Franchise Business: 4 Steps

When it comes to business registration, franchises aren’t that different from other kinds of businesses. There are no additional government requirements, just some things you may need to consider.

Additional Requirements

If you have employees, you need to register as well with the Department of Labor and Employment (DOLE), Social Security System (SSS), PhilHealth, and Pag-IBIG. This can be done easily in Philippine Business Registry (PBR) kiosks .

Tips & Warnings

The timing of your registration is important so don’t register too early. As a beginner franchisee, it might be tempting to get the time-consuming business registrations out of the way. However, if you register too early, you might be taking on a burden that you don’t even need yet.

Frequently Asked Questions

Yes, but it is not recommended. After registering your business, you will need to start complying with the monthly, quarterly, and annual requirements. This is a burden you don’t need to tackle until you have firmly decided to open a franchise.

1. Allocate ample time for brainstorming for business ideas

It is very important to note that brainstorming for business ideas is very crucial for any business aspirants who wish to start on their entrepreneurial journey.

2. Layout the business plan

Cliché as it may sound, but this holds true until today: “Failing to plan is planning to fail.” When starting a new business venture, a business plan is needed to be developed to guide you on the steps to be done.

3. Prepare your initial investment

The initial investment is a prerequisite before starting any business. To get a rough amount to prepare, it is best to determine the possible costs that you may need to pay. This may include licenses, permits, legal fees, insurance, branding, marketing, trademarking, inventory, property leases among others.

4. Identify your business structure

In the Philippines, there are three common business structures - sole proprietorships, partnerships, and corporations .

5. Follow necessary legalities imposed by the government

As mentioned, licenses, permits, legal fees, insurance, branding, marketing, trademarking, inventory, property leases are among the costs that need to be covered once you plan to start your business.

6. Choose your team

Prepare job descriptions and specifications that will be crucial in choosing the members of your team. Take time in thinking and outlining the positions needed to be filled.

7. Advertise your business

The business industry has been highly competitive. Standing out above from the competitors can be a challenge. You need to attract clients and customers.

Table of Contents

Why You Need to Register Your Business When Franchising

Things to Do Before Registering A Franchise Business in The Philippines

How to Register Your Franchise Business: 4 Steps

Additional Requirements

How Much Does Registering A Franchise Business Cost?

Tips & Warnings

Frequently Asked Questions

References