Registration
- Log in at www.bnrs.dti.gov.ph . ...
- Click the “ New Application ” which you can find on the left-hand side of the webpage. ...
- Fill out the application form providing accurate information.
- Select “ Download ” for your business name certification and click “ Submit ”.
- Your certification will be sent to your email. ...
- Reach 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.
How do I become a franchisee in the Philippines?
The chosen franchisor must be a legal member of any or all accredited franchise associations in the Philippines; Every franchise must sign a Franchise Agreement between two or more parties through which the Franchisor grants the Franchisee the right to conduct the business under a proposed marketing plan;
What are the different types of franchising in the Philippines?
These are the ones you can find locally: Business Format Franchising is probably the most common here in the Philippines. In this setup, the franchisor provides the franchisee a whole system of doing business, aside from the use of their products, services, and trademark.
Do I need to register my business with the franchisee?
Note that you might need to register both your franchise’s head office and physical store’s location if they are different. 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.
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 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 do I register my franchise to DTI?
Registering a business name and paying the fee can be done online at bnrs.dti.gov.ph. You may find a step-by-step registration guide at bnrs.dti.gov.ph/resources/registration-guide. You may also register at your nearest DTI Regional or Provincial office.
What are the legal requirements for a franchise?
Generally, the offer and sale of franchises find legal basis in laws such as:The Indian Contract Act, 1872.The Foreign Exchange Management Act, 1999 (FEMA).The Competition Act, 2002.The Trademarks Act, 1999.The Copyright Act, 1957.The Patents Act, 1970.The Design Act, 2000.The Income Tax Act, 1961.More items...
How can a small business franchise 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.
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.
How much is BIR Certificate of Registration?
Php 500Registration fee is Php 500 and Php 30 for loose DST or Proof of Payment of Annual Registration Fee (ARF). You can pay the registration fee in BIR accredited banks. Accredited banks will provide you a BIR payment form.
How do I apply for a franchise?
Franchise requirements vary from company to company. You might first submit a basic application and be called to meet with representatives for a formal presentation or interview. Other establishments require a complete application, business plan and financials to be submitted at the same time in hard copy.
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.
What are the documents needed in franchising?
Below are some of the more common pertinent documents a franchisor needs in order to keep the ball rolling.Letter of Intent to Franchise. ... Application Form. ... Site Location Proposal. ... Business Name Registration (Department of Trade and Industry) ... Barangay Clearance. ... Business or Mayor's Permit.
What happens if a franchisee fails?
Often the best answer to a franchise that is not succeeding is for the franchisee to sell the business to a third party who becomes the new franchisee for that territory. This allows the failing franchisee to terminate its obligations under the franchise agreement and under any lease.
Which two primary documents are required for franchise business?
Franchise Agreement and the Franchise Disclosure Document (FDD) are the two primary documents that one needs to draft to set up a franchise business in India.
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.
Is DTI required for small business?
Entrepreneurs who wish to open a business through a sole proprietorship business entity must register with the Department of Trade and Industry (DTI). When starting a business in the Philippines, complying with appropriate government agencies is important in order to lawfully operate.
Which office will you go to register your single owned business?
Register your business with the Bureau of Internal Revenue (BIR) All sole proprietor are required to register with the Bureau of Internal Revenue (BIR).
Is DTI required for corporation?
This is the only type of business that is required to be registered at the DTI. There are a few other types of business ownership such as a corporation, partnerships, limited partnership, cooperatives, etc. whose names must be registered to other different departments of the government.
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 long does it take to get a food cart franchise?
Expect the application process to take a long time, at least a month for a food cart franchise. Although the actual process varies from one franchisor to another, a franchise business application in ...
What is franchise business application?
This can help you decide whether or not to pursue a business partnership with a particular company. A franchise business application is no different from applying for a job, or even dating. The whole process involves doing background checks and assessing each other’s compatibility.
How successful is franchising in the Philippines?
Franchise businesses in the Philippines enjoy a higher success rate of 90% versus the general retail industry’s 25%, according to the Philippine Franchise Association (PFA). And with ROIs coming in as quick as less than a year, franchising is an ideal business option for first-time entrepreneurs.
What is a franchise expo?
Franchise expos are a one-stop shop for any aspiring franchisee. Companies all over the Philippines (and even abroad) gather in one place to offer franchising opportunities. Make the most of your franchise expo participation, so you can pick the companies that are worth investing in.
How to review a franchise agreement?
Pay close attention to these details when reviewing a Franchise Agreement: 1 Length of effectivity of the agreement 2 Renewal period, terms, and fee 3 Total franchise investment costs, including the franchise fee, royalty fee, etc. 4 Franchise package inclusions 5 Franchise territory [3] (The exclusive territory granted to a franchisee) 6 Franchisor-approved suppliers of products and supplies for the franchise business 7 Grounds for termination of the agreement
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.
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.
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.
Going to the Proper Government Agency
The first step in getting a certificate of registration for your business name is going to the proper agency. There are different government agencies where you can register your business depending on its structure.
Business Name Approval
There are certain rules that should be observed in providing a business name. It is the owner’s responsibility to make sure that the proposed business name is NOT:
Registration
There are two ways to apply and register. It’s either online or over-the-counter.
What are some examples of franchising in the Philippines?
Examples: Car dealerships, service stations.
Why Franchise?
Franchising allows an entrepreneur to practice and use an existing perfected business concept. For an entrepreneur who is new in the Filipino market and aims to start a risk-free venture, franchise is the best business vehicle to opt for.
Registration with Department of Trade and Industry (DTI)
For a single proprietor or sole owner, you first have to check the list of business names in the Philippine Business Registry website so you’ll know if your preferred business name (s) is still available.
Registration with Bureau of Internal Revenue (BIR)
Of course, your business should be registered with BIR as well for tax purposes. Here are the steps on how you can comply with BIR:
What is a guest speaker?
The guest speakers are successful franchisees who have no reservations in sharing their experiences with their audience. At the end of the presentation, there will be an open forum where you can direct questions to any of the guest speakers. The seminars also provide an avenue to network.
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.
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.
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.
