how to franchise 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

Why franchising in the Philippines is the best business model?

This business works especially well in the Philippines as, on average, the public trusts certain brands. As an added benefit, franchising in the Philippines allows business owners to scale their businesses quicker and more effectively.

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 start a business in the Philippines?

The best way to start your business and make it successful is to comply with all the crucial requirements mandated by the government of the Philippines. Before that, it is significant that you identify first the kind of business that you want to venture in terms of ownership and business structure.

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 Franchising?

Franchising, as defined by the International Franchise Association 2, is a method of distributing products or services through an agreement between two parties, the franchisor, and the franchisee. The franchisor is the owner of the original concept, with its corresponding products, services, trademark, or business system.

What Are the Different Types of Franchise Businesses?

Not every franchise model is the same. These are the ones you can find locally:

The Pros & Cons of Franchising

You might be asking, “Why do people pay for a franchise?” Franchising, as a business model, has its benefits that many would be glad to pay for. But it also has its own disadvantages.

Franchising Versus Putting Up Your Own Business

Putting up an independent business of your own has its own pros and cons when compared to franchising. These include:

How To Start a Franchise Business in the Philippines: 9 Steps

Franchising is not an easy undertaking, and you should do some self-examination to check if it’s really for you.

History of Franchising in the Philippines

Franchising has a long history, possibly dating back to the Middle ages 4, but it’s believed to have been popularized in the United States of America during the Industrial Revolution. Manufacturing companies, like General Motors and Coca-Cola, wanted to solve the problem of the high cost of distributing their products.

Common Misconceptions About Franchising

Before you start franchising, make sure that you have the right expectations. There’s a lot of misinformation out there, including:

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.

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.

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.”

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 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.

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.

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.

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