how to franchise my business in 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

How to run a successful franchise business?

Operating a franchise business is very different from a job that requires you to work from 8-to-5. You might have to work during weekends, holidays, even early mornings and midnights just to make your franchise business will succeed. 3. Accept the fact that although you yourself will manage the business, you still are not the boss 100% of the time.

How to invest in a franchise?

What is franchising?

What is product franchising?

Why do franchisors charge fees?

Why is franchising business format so complicated?

What to do once approved for franchising?

Why is it important to check the legitimacy of franchisors?

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How do I turn my business into a franchise?

How to Franchise a BusinessMake sure your business is ready to franchise.Protect your business's intellectual property.Prepare a financial disclosure document (FDD)Draft a franchise agreement.Compile an operational manual for franchisees.File or register your FDD.Set a strategy to achieve your sales goals.

What are the legal requirements for franchise in the Philippines?

There are no specific laws governing franchising in the Philippines. Franchise agreements are regulated by the applicable provisions of the: Intellectual Property Code (IPC). Civil Code.

Does franchisee need to register in DTI?

EO 169 sets out the terms and conditions of franchise agreements with MSME franchisees and requires franchise holders to register with the Department of Trade and Industry (DTI) – if they have a franchise agreement with an MSME franchisee.

How much does it cost to franchise a small business?

How much does it cost to start your own 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.

What are the two main types of franchising in the Philippines?

There are two main forms of franchising — product distribution franchising and business format franchising.

What documents are needed to open a franchise?

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.

What are the requirements to apply for a Jollibee franchise?

What are the Requirements to Franchise Jollibee in the Philippines?Application Form.Investment of P35 Million to P55 Million.Letter of Intent.Vicinity Map of the location.Resume or CV.Attend Basic Operations Training Program.

Do I need mayor's permit for online business?

All businesses, whatever the legal form, are required to secure a mayor's permit or municipal license from the city or municipality where they are located.

Who needs a DTI permit?

Anyone can apply for business registration as long as they meet the following criteria set by DTI:Individuals of at least 18 years of age. ... Filipino Citizen.Non-citizens with a certificate of sole proprietorship or Certificate of authority to engage in business in the Philippines.Stateless person.

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.

Is a franchise fee a one time payment?

FYI: Monthly royalties are where the profits are for franchisors-not the upfront franchise fee, which is a one-time payment. As shown above, franchise fees are a necessary part of franchising.

What does a KFC franchise cost?

For non-traditional KFC outlets, KFC charges an initial license fee of $22,500. For traditional KFC franchise agreements, the franchise (or initial license) fee is $45,000 split into the deposit fee and the option fee.

What are the legal requirements to start a business?

One of the most important of these obligations is to get the business legally registered....Documents required for starting a business in IndiaDigital Signature Certificate (DSC)Director Identification Number (DIN)Registration on the MCA Portal.Certificate of Incorporation.Commencement of Business Certificate.

What are the requirements to apply for a Jollibee franchise?

What are the Requirements to Franchise Jollibee in the Philippines?Application Form.Investment of P35 Million to P55 Million.Letter of Intent.Vicinity Map of the location.Resume or CV.Attend Basic Operations Training Program.

How can I legalize my business in the Philippines?

Register your business in the Bureau of Internal Revenue (BIR)Prepare the requirements. ... Fill up the BIR Form 1901. ... Go to your respective Revenue District Office (RDO). ... Pay the Registration Fee. ... Claim your Certificate of Registration (COR). ... Purchase and register your books of account. ... Secure an Authority to Print (ATP).

What is involved in a franchise agreement?

A franchise agreement is a contract under which the franchisor grants the franchisee the right to operate a business, or offer, sell, or distribute goods or services identified or associated with the franchisor's trademark.

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...

Best Franchise Business Philippines 2022 | Top Food, Service, Retail ...

Discover how to franchise the top recommended food, service and retail franchise businesses in the Philippines. Whether you're looking for food, milk tea, shawarma, dialysis, gym, pharmacy, grocery and other franchise brands, U-Franchise has a shortlist of the best franchise opportunities.

List of Food Franchise Businesses in the Philippines 2022 - Moneymax

Looking for a food franchise in the Philippines for less than ₱1 million? Here's a list of profitable yet affordable ones to consider.

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 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 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»

Who can own a franchise?

A single person or a group of people who enjoy investing in businesses can own a franchise. It can be operated by a corporation or investors themselves. Among the many kinds of entrepreneur franchises, there in one known as the… 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»

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 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 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.

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 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 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!

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.

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