how to franchise your small 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

What is franchising?

What is business format franchise?

What is a trade name franchise?

What is a franchise agreement?

Why do franchisors collect financial information?

Why is franchising important?

How to handle a franchise business?

See 2 more

How do I turn my small 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.

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.

What is the lowest franchise in the Philippines?

food cart franchiseWhat is the cheapest franchise to open in the Philippines? There are many options for a low-cost franchise business in the Philippines in 2022. The cheapest you can get is a food cart franchise worth ₱20,000.

What is the cheapest most profitable franchise to own?

What are the cheapest franchises to buy?Cruise Planners. Franchise fee: $10,995. ... Jazzercise. Franchise fee: $1,250. ... Help-U-Sell Real Estate. Franchise fee: $15,000. ... United Country Real Estate. Franchise fee: $8,000 to $20,000. ... Stratus Building Solutions. ... Anago Cleaning Systems. ... JAN-PRO. ... Dream Vacations.

How do I register my Bir franchise?

How To Register Your Franchise Business: 4 StepsDecide on Your Business Structure. ... Register Your Business Name. ... Register With the BIR. ... Apply for a Business Permit for Your Office and Store Location. ... For DTI Registration.For SEC Registration. ... For BIR Registration. ... For Business/Mayor's Permit.More items...•

What documents are needed to open a franchise?

There are two ​legally required documents you should become very familiar with before ​franchising your business: the Franchise Disclosure Document, and the Franchise Agreement.

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.

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 much is LBC franchise?

Each branch costs about P700,000 to P1 million to set up.

Can you buy a franchise with no experience?

Most people don't realize that they can have all of this and more through their own franchise. The best part is that there is no experience or education necessary to owning your own franchise. The only thing that is required is a drive for success.

What franchise can I open for 10K?

There are many franchise opportunities to invest in that don't require a huge initial investment....18 Affordable Franchises Under 10K in the U.S.Krispy Krunchy Chicken. ... Java Dave's Coffee House. ... Capriotti's Sandwich Shop. ... MOMLETA / Baby Boot Camp. ... Fit4Mom. ... Jazzercise. ... Social Owl. ... Fastest Feedback.More items...

What business can I start with 25000?

Top 15 Ideas to Start Online Business in India Under Rs 25,000Digital Marketing Agency.Content Writing.Graphic Designing.E-commerce Website.Tour and Travel Agency.Online Education and Coaching.Online Food Delivery / Tiffin Service.Online Repairing Business.More items...

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 I register a franchise 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.

Is a franchise a sole proprietorship?

Sole Proprietorship: If you choose not to form an entity to operate the Franchise Business, then you will be considered a sole proprietorship (if the franchise is owned by a single individual). A sole proprietorship exists when a single individual operates a business and owns all of the assets.

Why do you need to register your business when franchising?

It is a common practice that protects the franchisee and can be done in a way that keeps the franchisor's trademark intact. Registration guidelines vary from state to state, so it's important to understand your individual requirements based on location.

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?

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 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 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.

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.

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 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.

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, ...

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 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»

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 a me and u?

Me & U is an independent business venture that conceptualizes in direct selling exclusive brands to the consumers. It is a collaboration of 2… 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 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).

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.

Why is franchise business important?

Starting a franchise business is a great way to learn how a successful company operates.

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 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 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 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.

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.

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