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
What are the most profitable business in the Philippines?
What is the most profitable business in Philippines? 20 Profitable Home-Based Business Ideas in the Philippines Baking Business. Online Tutoring. Graphic Design Business. Bills Payment Business. Tailoring Services. Digital Marketing Agency. Homemade Products Business. Starting Capital: PHP 3,000 to PHP 5,000. Rice Retailing or Bigasan.
Should you buy a franchise business?
Others also have their unique reasons on why they buy a franchise business. One of the few good reasons of buying a franchise business is that it lets you avoid all those potential risks experienced by other start ups. This is also a one way of being smart.
Which is the most profitable and cheapest franchise business?
- Stratus Building Solutions is a successful franchises with low startup costs. ...
- Floor Hero is a low cost franchise with high profit. ...
- Amazing Athletes is a low cost franchise with high profit. ...
- Dream Vacations is a low cost franchise with high profit. ...
- Maid Simple House Cleaning is a high profit franchise with low startup costs. ...
Which is the best bank in the Philippines?
Top 10 Banks in the Philippines
- BDO Unibank INC. It is the largest banks in the Philippine in terms of assets found in Jan 1968. ...
- Metropolitan Bank & Tco. It also is known as Metrobank and second largest bank in the Philippines with a total of 1,788,686.32 Million Pesos founded in 1962.
- Land Bank of the Philippines. ...
- Bank of the Philippine Islands. ...
- Philippine National Bank. ...
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.
What is a Franchise Business?
A franchise business is a partnership between a franchisor (original business) and a franchisee (investor that seeks to buy the right to sell and use the original business’ name, trademark, concept, process, goods, and services).
Why is franchise business important?
Starting a franchise business is a great way to learn how a successful company operates.
What is franchising similar to?
This type of franchising is very similar to the relationship of a supplier and distributor. Simply put, the franchisor is responsible for providing the product, which the distributor is then authorized to sell.
What does a franchisor do?
The franchisor also provides the franchisee with an operating system, brand and support. Simply put, in a business franchise an established brand/company will allow you to sell its products/services by selling the license to you.
How has technology made business easier?
Technology has certainly made a lot of things easier for humans (especially with the inevitable rise of cashless payment systems ). And now, even in the franchising space, technology has made business operations far less complex, as some of these business ideas don’t heavily rely on human resources (except for maintenance and marketing).
What is the success rate of a franchise?
9. Higher chances of success. Running a franchise business has a success rate of 90% , based on a study by the United States Agency for International Development (USAID). This fact is hardly surprising because all the franchising pros listed above contribute to raising the chances of success.
Why is franchisee more liberty?
But because of the absence of those things , the franchisee has more liberty in terms of how to run the business. It’s important to note, though, that while franchisees may enjoy more freedoms, they still need to adhere to guidelines such as selling the products on either an exclusive or semi-exclusive basis.
What is a business franchise?
A business that has the allowance to use the rights of a brand company, and its products and services is known as a Business Franchise. The owner functions a business under the specific guidelines and specifications provided by… more»
What is franchising in business?
Franchising is a business strategy where a company makes use of the business model that another company uses. A company sells the rights to use his business model to another company to use. In franchising, the company that sold… more»
What is the licensing arrangement in a business where distribution of product or services can be done through registered dealers?
The licensing arrangement in a business where distribution of product or services can be done through registered dealers is known as “franchising”, the owner of the franchise is known as a “franchisor”, whereas a dealer… more»
What does it mean to get involved in a franchise?
Getting involved in a business of franchise means that the owner accepts the agreement of promoting and selling the merchandises or services of the company that are provided by the franchisor. The brand name or the company’s… more»
How long has franchising been around?
The concept of franchising has been prevailing in the market for over 50 years, and is new and very successful. It allows the franchise owners to generate more revenues by reaching out and catering more customers as compared to… more»
What is the most popular breakfast in the Philippines?
In the Philippines, lugaw or rice porridge is one of the most popular and cheap breakfasts for everyone. It is very easy to cook and the ingredients cost very cheap. You can sell this in front of your house placed on a table;… more»
Which country has the fastest growing economy?
For the past years, the Philippines have emerged as one of the fastest growing economies in the world, impressively rivaling the growth rates of fellow Asian countries. From being referred to as the “sick man of Asia” in… more»
What is the most common type of franchise in the Philippines?
Here in the Philippines, the most common type of franchise is the business format franchise. Notable examples are fast food chains such as McDonalds and Jollibee. It is estimated that around 55% of franchises are food-related businesses while 45% are in retail. While there are no laws that specifically cover franchising in the country, franchising agreements are considered contracts and governed by the Civil Code. Franchising arrangements could also be considered as technology transfer arrangements and covered by the pertinent provisions in the Intellectual Property Code.
How do I get a franchise?
Once you have decided on the franchise you want, talk to the franchisor directly by contacting them. Their contact details can usually be found in their website. If they don’t have a website, you can go to their nearest office branch and inquire there.
What is business format franchise?
Lastly, a business format franchise not only allows the distribution of the franchised product but also gives the franchisee the right to the franchisor’s business concept or model. In this arrangement, the franchisor gives the franchisee access to its business methodology and could also provide the training, marketing, ...
What are the different types of franchising?
There are three common types of franchising arrangements: product franchising, manufacturing franchise, and business format franchising. In product franchising, the franchisor allows the franchisee to distribute the former’s products and use its trademark and name for a fee. The franchisor could also require the franchisee to purchase ...
What is franchising in business?
What is franchising? Franchising is an arrangement wherein a person (the franchisee) is allowed by another (the franchisor) to market the latter’s product or service including its trademark, logo, or name and to utilize its business formula for a fixed fee.
What is the term for a franchise agreement?
This contract is called the Franchise Agreement (FA) and it contains the terms and conditions of the franchise arrangement such as length of effectivity, renewal, grounds for termination and other provisions.
What is the failure rate of a startup?
With an estimated failure rate of 80 to 90 percent, the startup life is not for the faint of heart. Launching your own startup requires a lot of patience, dedication, and willingness to take risks. But not everyone wants high risk businesses. If you are one of those people who prefer to start small with sure and steady gains, ...
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.
What is a franchise in the Philippines?
In a franchise, the franchisor (original owner) gives the franchisee (the buyer of the franchise) the right to sell the products of the franchisor, the name or brand is included and so are equipment used. They are taught special recipes or how to sell products too.
How long does a salon franchise last in the Philippines?
You will not start from scratch by promoting your salon, but enjoy customers come it as it is already popular. Franchise Term: 8 years.
What is the most popular drink in the Philippines?
Zagu is one of the most popular drinks in the Philippines. Every time there is a sporting event or when people are under the hot sun, a Zagu stall would be perfect. This is also a known brand and people would line just to have a sip!
What do Filipinos eat for breakfast?
Filipinos love bread; they eat it for breakfast, snack or at midnight when hungry. Julie’s Bakeshop is a known bakeshop in the Philippines. Not only will you get customers because of the brand, but also get to eat tasty bread every day.#N#Franchise Term: 5 years
How long is the Greenwich franchise in the Philippines?
This is a big Italian-Filipino food franchise in the Philippines. Franchise Term: 10 years.
How long is the Bon Appetea franchise?
As Bon Appetea is a known brand, you don’t have to market your product by yourself and wait for customers to come in. Franchise Term: 5 years.
When did McDo open in the Philippines?
McDo is a US fast-food chain that has successfully opened in the Philippines since 1985. Check out the details on franchising at McDo, you can truly say Love Ko To!
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
- If you have employees, you need to register with the Department of Labor and Employment (DOLE), Social Security System (SSS), PhilHealth, and Pag-IBIG. This can be done easily in Philippine Busines...
- Franchises related to financial services, like money transfersand pawnshops, may need to register with the BSP or Bangko Sentral ng Pilipinas.
- If you have employees, you need to register with the Department of Labor and Employment (DOLE), Social Security System (SSS), PhilHealth, and Pag-IBIG. This can be done easily in Philippine Busines...
- Franchises related to financial services, like money transfersand pawnshops, may need to register with the BSP or Bangko Sentral ng Pilipinas.
- Educational franchises must work with the Department of Education (DepEd) and comply with their requirements.
How Much Does Registering A Franchise Business Cost?
Tips & Warnings
Frequently Asked Questions
References