how to franchise 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 does franchising work in the Philippines?

Part of how franchising works in the Philippines is understanding what franchising is. In a brief description. A franchise business is a business in which the owners, or “franchisors,” sell the rights to their business. This also includes their logo, name, and model.

What are the cheapest franchise opportunities in the Philippines?

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 Food kiosks are ideal for people who are just starting in business because they’re affordable. The minimum would only cost you Php 20,000.

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 do I need to know before franchising in the Philippines?

Franchising is an enticing industry....Business Legal Requirements and FeesRegister your business. ... Secure a Mayor's business permit. ... Register with the Bureau of Internal Revenue (BIR) ... Register with the SSS, PhilHealth and Pag-Ibig Fund. ... Special or other requirements.

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.

How do I own my own franchise?

How to buy a franchise, step by stepBe sure about your reasoning. ... Research which franchises you may want to own. ... Begin the application process. ... Set up your “discovery day” meeting. ... Apply for financing. ... Review and return your franchise paperwork very carefully. ... Buy or rent a location. ... Get training and support.

How do I start my first franchise?

Steps to Start a FranchiseStep 1: Research your options. ... Step 2: Select a franchise that aligns with your business goals. ... Step 3: Create an LLC or a corporation. ... Step 4: Arrange financing. ... Step 5: Talk to the franchisors and franchisees. ... Step 6: Talk to members of your community. ... Step 7: Create a business plan.More items...•

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

What are the best franchise 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.

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 qualifications do you need to own a franchise?

Some franchise requirements to take into consideration may include:Credit score. Minimum credit scores vary by franchisor, but most consider a grade of 680 or higher as ideal.Net worth. ... Available cash. ... Previous industry experience. ... Management experience. ... Total investment required. ... Ongoing costs. ... Training and support.

What is the most profitable franchise?

Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•

How much money do I need to start a franchise?

Franchise startup costs can be as low as $10,000 or as high as $5 million, with the majority falling somewhere between $100,000 and $300,000. The price all depends on the industry, location and type of franchise.

Do franchise owners have to work?

Owning a franchise unit can be demanding, requiring work of 60 to 70 hours a week, but owners have the satisfaction of knowing that their business's success is a result of their own hard work. Some people look for franchise opportunities that are less demanding and may only require a part-time commitment.

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...

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, ...

What Is Franchising In The Philippines?

In a brief description. A franchise business is a business in which the owners, or “franchisors,” sell the rights to their business. This also includes their logo, name, and model. All this goes to a third-party retail outlet, owned by the independent, third-party operator, called “franchisee.”

What Companies Can I Franchise In The Philippines?

These range from food carts to laundry stores to big chain restaurants. However, here is a small list of the most common franchising companies you will find in the Philippines.

What Are The Pros To Franchising?

A proven business model is an excellent asset to any entrepreneur that is looking to franchise a company in the Philippines. Why? Because the franchising business that you choose will have a valuable understanding of the customer’s needs, desires, and expectations. In other words, this business plan will help you massively on your path to success.

What are the most common franchising companies in the Philippines?

However, here is a small list of the most common franchising companies you will find in the Philippines. Dunkin’ Donuts. Jollibee.

Is franchising in the Philippines transparent?

Most well-known brands that are franchising corporations in the Philippines are very transparent in regards to their fees and royalties. The fees and royalties you will need to pay will depend on the franchising company you have chosen.

Is franchising a passive income?

It’s also important to understand not all franchising businesses are successful. But if you have an entrepreneurial vision then this will allow you to greater increase your chances of your franchise business being successful. Someone asked me recently if franchising is a great passive income. The answer is no.

How to franchise 711 in the Philippines?

First, any entrepreneur will need to visit their official website ( www.7-eleven.com.ph ). Once here, click on “corporate” then “franchising.”

How Much Profit Can I Make From Franchising 711 In The Philippines?

Gross profit is split fixed. 66% will go to the franchisee, and 34% will go to 7/11. All amounts showed are all VAT exclusive. PCS reserves the right to change the amount from time to time without prior notice.

What Is The Next Step In Franchising 711 In The Philippines?

After looking at how to franchise 711 in the Philippines, the next step is to speak directly with 711. As mentioned, we found 711 to be extraordinarily transparent, and they are more than willing to give you details about prices and the steps you need to take to become a 711 franchisee in the Philippines.

How long is a franchising term?

In addition to these requirements, there are also other conditions such as terms of service. Each franchising term is 3 years which can be renewed.

What are the operating expenses of a franchisee?

The operating expenses will shoulder by the franchisee, including renting, store supplies, and inventory variation. Electricity is 50% by the franchisee and 50% by the company.

Do you need backup capital for 7/11?

If you start a 7/11 franchising store having some backup capital for an emergency is essential. If you are taking out a loan to start this business, then perhaps speak to your loan provider and see if you can increase your limit for unforeseen circumstances.

Is franchising a good idea in the Philippines?

We believe the 7/11 franchising business to be a good opportunity for any entrepreneurs as there is still a lot of growth to be had in the Philippines. As I’m writing this, certain cities within the Philippines are currently being developed, which is great for an entrepreneur as prices for real estate and other essential assets are considerably lower than in the Metropolitan areas.

At a Glance: The 9 Best Franchise Business Opportunities in the Philippines for Post-COVID Era (and Beyond)

According to the PFA, it’s a great opportunity now to invest in a franchising business and ride the wave of the industry’s recovery. They are predicting a franchising golden age by 2025 3, but only for businesses that can adapt to the new normal. Consider the following franchise businesses:

The Ultimate List of Franchise Business Opportunities in the Philippines

Food and beverage carts have a limited menu that serves only their specialties. The same can be said for food and beverage kiosks, which is a slightly larger version of the cart.

Who Should Start a Franchise Business?

Not everyone should go into franchising. If you don’t understand the risks and responsibilities involved, you may just be wasting your time and money. Listed below are the kinds of people who might find success in franchising:

Tips and Warnings

Don’t expect overnight success. Just like most businesses – franchising is a marathon, not a sprint. You have to accept that it might take several months or years to get your money back and start bringing in profits. You need to consistently promote and deliver quality services to achieve this.

Frequently Asked Questions

No. If a franchisor is guaranteeing the success of your franchise, then it’s probably a scam. The success of a franchise, just like any other business, hinges on many different factors that franchisors typically don’t get involved in.

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!

What does it take to be a franchisee?

You have what it takes to be a franchisee. You possess the attitude, behavior, and personality needed to succeed as an owner of a franchise business. You understand the risks and requirements of the busiess and are willing to invest time, money, and effort in order to succeed.

How long is franchise training?

Training Program: 2-4 week training program for all new franchisees covering management training, in-store operations, standard operating procedures for beverage preparation, report analysis and measurement of flavors, customer service, and social media marketing

Where is the search box on a franchise?

Type the name of the franchise you’re looking for in the “Search” box located at the top of the table; or

Do franchises get added to the list?

We regularly add franchises to the list. If you want us to research on franchises you’re interested in but are not yet included in the database, like and contact us on our Facebook page to let us know!

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.

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.

How long is a franchise contract?

Franchise contract terms range from two to five years or longer . Within that period, you’ll be stuck with the company regardless if it’s performing well financially or not.