how to make your own 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 much does a Jollibee franchise cost in the Philippines?

We provide estimated franchise costs for some countries: - In Philippines, the total investment to start the Jollibee Restaurant is around Php 35 million to Php 55 million.

What are the franchising requirements 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.

How much does it cost to start your own franchise?

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 is the best franchise in the Philippines?

Top 10 Best Franchise in the PhilippinesJollibee Foods Corp (JFC) Jollibee Foods Corp (JFC) is a fast food restaurant chain that specializes in Filipino fast-food dishes. ... McDonald's. ... A Gasoline / Petrol Stations. ... Convenient Stores. ... Bayad Center. ... Pharmacy / Drugstore. ... KFC. ... PCSO Lotto.More items...

What is the lowest franchise in the Philippines?

2. What 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.

How much is franchise tax in Philippines?

Franchise Taxes in the Philippines In general, franchises follow the usual income and business taxes scheme, plus a 20% final withholding tax on royalty fees charged by the franchisor. Also, any annual gross revenue that exceeds P3 million will be automatically subjected to a 12% Value Added Tax (VAT).

Do franchise owners take a salary?

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 a monthly fee?

Franchise royalties are usually collected by your franchisor on a monthly basis. Like marketing fees, these fees are based on a percentage of your revenue.

Do franchise owners make money?

Franchise Business Review found that the average annual pre-tax income of franchise owners in America is $80,000. Only 7% of franchise owners make more than $250,000 annually, and 51% earn less than $50,000. Legally, franchisors cannot give income amounts or forecasts of future income.

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.

Which franchise is the richest?

The 25 Highest-Grossing Media Franchises of All TimePokémon – $92.121 billion.Hello Kitty – $80.026 billion.Winnie the Pooh – $75.034 billion.Mickey Mouse & Friends – $70.587 billion.Star Wars – $65.631 billion.Anpanman – $60.285 billion.Disney Princess – $45.187 billion.Mario – $36.143 billion.More items...

What is the most profit making franchise in the Philippines?

In the Philippines, 7-Eleven remains to be the biggest and most popular franchises approved by entrepreneurs. As a globally-recognized brand name, acquiring a 7-Eleven branch may require a lot of time, money, and effort.

Can foreigners franchise in the Philippines?

In reality, foreigners are allowed to own and manage a business in the Philippines. However, they have more requirements to fulfill compared with Filipino business owners. Also, there are certain business activities or industries that are restricted to Filipino owners only.

What are the basic requirements of the franchise Rule?

The Rule requires franchisors to provide all potential franchisees with a disclosure document containing 23 specific items of information about the offered franchise, its officers, and other franchisees.

What are the 5 basic requirements to start business in the Philippines?

Here are some of the legalities of a business in the Philippines:Register 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.

Can a foreigner own a franchise in the Philippines?

The Philippines has amended its Foreign Investment Act. The amendments allow foreign investors to set up and fully own local enterprises.

How many franchises are there in the Philippines?

The industry has only been in the Philippines for about 11 years but to date, there are now about 900 franchises all over the country according to the Association of Filipino Franchisers, Inc. (AFFI). Franchising refers to the method of practicing and using another’s perfected business concept.

Why is it important to have a proven franchise?

This reason permits one to open a franchise business with little or no previous experience in a given industry. 2. High success rate. A franchise is a business model based on proven ideas and implementation, and comes with a reduced calculated risk. 3.

What are the challenges of franchising?

Here are some common challenges that a franchisee may face: 1. Working within the system. As franchising involves the use of a proven business system, the franchisee is required to follow the same. A franchisee cannot divert from this and loses the control that most business owners normally enjoy. 2.

What is a franchisor?

Franchisors discover and perfect operating and management efficiencies that they pass on to their franchisees. Franchisors often provide ongoing advise, research and development. Thus, new products and services will be brought to the attention of the franchisee as they become available.

What are the advantages of franchise?

These advantages of a franchise business will help you in achieving success in your business: 1. The experience of the franchisor. When an individual buys a franchise, he purchases the years of experience and the proven methods of the franchise system, also known as the franchisor.

What is the success rate of franchising?

Statistics indicate that the success rate in franchising is 90% . Traditional businesses, on the other hand, will give you a 25% chance of survival. So, if you’re the franchisee, you just need to follow the franchise’s exact system and you’ve got a significant leeway to acquire success, significantly cutting your risks in the process.

What is franchise relationship?

In a franchise relationship, the owner of the business (franchisor) gives the independent operator (franchisee) the right to distribute his products, implement his business techniques and use his brand and/or trademark in exchange for a fixed franchise fee and in most cases a portion of the gross income ( royalty fee, advertising fee, etc.).

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 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.

What is the Philippine Franchise Association?

PFA is a voluntary self-regulating organization that oversees the franchising industry. The majority, if not all, of the successful franchises in the Philippines are members of PFA.

How to get franchising information?

1. Attend Franchising Seminars. This step should always be your starting point. Seminars about franchising are a great way to get valuable information on the business. They present historical data in the franchising industry, including the latest statistics and figures.

What franchises were there in the 1990s?

Most of them were fast food, and Subway, El Polo Loco, Auntie Anne’s Pretzels, and Kenny Rogers Roasters were the popular ones . There were also nonfood franchises, such as Roto-Rooter and Mail Boxes Etc.

Does PFA have franchises?

Today, organizations such as the PFA have many franchises in their directory. Even banks that offer small business loans, such as Bank of the Philippine Islands, have franchises in their programs. They can connect you with the franchises to which you are interested. Pages: 1 2 3.