There are four ways to do it. First, check the list of franchisors from local franchise associations. These are the Association of Filipino Franchisers, Inc. (AFFI), Filipino International Franchise Association (FIFA), and Philippine Franchise Association (PFA). Second, contact the franchisors directly.
Full Answer
How do you manage a franchise business?
So if you're thinking of franchising a business or just starting out, keep these universal key steps in mind.Be Passionate About Your Product Or Service. ... Find Out Whether Your Community Needs This Franchise. ... Make Sure You Have Plenty Of Capital. ... Hire The Right Team. ... Pay Attention To Your Customer Service And Reputation.More items...•
What are the steps for franchising business in the Philippines?
How to Start a Franchise Business in the PhilippinesReach Out to Your Target Franchisors. Contact various companies that offer a franchise in your preferred industry. ... Prepare and Submit Franchise Requirements. ... Meet the Franchisor. ... Review the Franchise Agreement Carefully.
Is franchise business good in Philippines?
Proven business model and strategy: Franchises in the Philippines have reached 90% success rates in comparison to retail businesses, which fair at only 25%. Literally, you only need to run your business with the same procedures, policies, practices, and systems laid out by the franchisor.
How do I become a good franchise manager?
11 Franchising Tips for Managing Your Franchise BusinessFollow the proven system. ... Hire the best people and treat them right. ... Delegate to your employees. ... Use what your franchisor gives you. ... Manage your time efficiently. ... Acknowledge the fact that you will likely need franchise mentoring and assistance.More items...•
What are the 4 types of franchise arrangement?
Below are four types of agreements franchised businesses commonly form.Single-Unit Franchise Agreement. In a single-unit agreement, the arrangement grants the franchisee the right to open and operate a single franchise unit. ... Multi-Unit Franchise Agreement. ... Area Development Franchise Agreement. ... Master Franchise Agreement.
What are the five principles of franchising?
Franchising Fundamentals – Basic principles to knowIt's a methodology, not an industry. Franchising is a methodology. ... The franchisor owns the brand. ... Franchisees are licensees. ... Franchisees must qualify. ... Franchisors disclose information upfront. ... It's a three-way proposition.
Is it better to license or franchise?
A license arrangement is generally easier and cheaper to set up than a franchise concept. Ongoing management is also less demanding. However, you are giving up a lot of control over the quality of the products and services the licensee will provide, and this could damage your reputation.
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.
How long before franchise is profitable?
One common misconception when it comes to operating a franchise is that once you sign on the dotted line and open for business, the customers and revenue will start flowing. This is typically not the case. It normally takes a year or two to become profitable.
Who controls a franchise business?
Assuming you will be the majority shareholder and will take day-to-day responsibility for the operation of the business then you will be most definitely in control. However, remember that the purpose of that business will be to operate, under licence, an outlet of the franchisor's system.
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.
How can I make my franchise successful?
Below, we've listed 10 keys for franchise success.Make sure you have enough money.Follow the system.Don't neglect your family and friends.Be an enthusiastic franchisee.Recruit the best and treat them with respect.Teach your employees.Give customers great service.Get involved with the community.More items...
What is the process for becoming a franchise?
What are the Steps to Take to Franchise a Business?Determine if franchising is right for your business.Issue your franchise disclosure document.Prepare your operations manual.Register your trademarks.Establish your franchise company.Register and file your FDD.Create your franchise sales strategy and budget.
What are the steps necessary in developing a franchise system?
Some steps to create an effective franchise system are discussed below.Create a Business Plan. ... Protect Intellectual Property. ... Identify Franchisees. ... Establish Operational Standards. ... Identify Training and Support Opportunities. ... Identify Franchise Fees and Provisions. ... Seek Legal Assistance.
What are steps to select a franchise?
She highlighted the following qualities you should look for in your prospective franchisees.Do they have a passion for the business? ... Do they have the necessary financial means and business acumen? ... Will they maintain your standards? ... Is your franchise a good fit for them?
What are the six steps in investigating a franchise?
How to Investigate a FranchiseStep 1 – General Information. ... Step 2 – The Franchise Disclosure Document. ... Step 3 – Franchisee Calls and Visits. ... Step 4 – Review the System Documentation. ... Step 5 – Meet the Franchisor. ... Step 6 – Make a Decision.
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...
How to manage a franchise business?
Even with existing guidelines, always strive to continuously improve the business and how you manage it in ways that you can. Enhance your marketing skills. Improve the quality and speed of your service. Keep track of any market or industry trends.
What is franchising in business?
Franchising is a “ method for expanding a business and distributing goods and services through a licensing relationship,” as stated by the International Franchise Association. Simply put, franchising is when a person or company (the franchisee) pays another person or company (the franchisor) a set of fees and royalties for ...
What does a franchisor do?
Depending on the agreement, franchisors could provide the franchisees a wide range of pre-opening and ongoing support on things like site-selection, crew training, and marketing. Being backed by a reputable franchisor also helps with loan approvals and negotiation with vendors.
What are the two types of franchising?
Types of Franchises. There are two main forms of franchising — product distribution franchising and business format franchising. In product distribution franchising, the relationship between the franchisees and franchisors is very much like a standard dealer-supplier relationship. Franchisees are allowed to use the franchisors’ trademarks ...
What to do if you are short on capital?
If you find yourself being short on capital, you could consider getting a franchise business loan.
What to expect after submitting a franchisor?
After submitting your documents, the franchisor will reach out to you to schedule a meeting and/or site inspection. In these meetings, expect to be interviewed and oriented on the details of the franchise. You can also take this chance to ask them any important questions that you might have.
Is it possible to start a franchise business without starting from scratch?
Franchising could be the answer. It’s a way for people to go into business without starting from scratch (and arguably with higher success rates). If you’re interested in starting a franchise business but have no idea where to start, here’s our basic guide on what it is, its pros and cons, and how to start one.
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:
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.
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 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»
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»
9. Get Your Business Plan Moving!
Once all the paperwork is out of the time, your focus should now shift to making your franchise business a reality. Your life will go from 0 to 120 mph without warning. Previously, the business plan was purely theoretical. Now, you have to make it work.
10. Initiate Marketing and Promotional Activities
This is where we made our biggest mistake. The mistake had nothing to do with our marketing program at the time. The problem was we did not invest in any marketing program at all. When we were about to start the franchise business, we did not have any marketing plan in the pipeline.
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!
Why do you need a business plan when taking a loan?
This is exactly why you need a business plan. This plan helps lenders in assessing the borrower and the business if it is profitable in the future or not.
Is a business plan intended to get funding?
Yes, the plan is not intended only to get the funding. Instead, it forces you to take the investment seriously and to anticipate the challenges that may happen during the business opening. In other words, it sets your expectations right.
