how to start a franchise 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 the best franchise business in the Philippines?

List of the Best Franchise Business in the Philippines (with their cost) 1 1. Jollibee. The Bubbly red bee who makes all children and adults happy. Parang walang tao sa Pilipinas na hindi kilala ang bubuyog na ito. Proudly ... 2 2. McDonald’s. 3 3. 7-Eleven. 4 4. Andok’s. 5 5. Belgian Waffles. More items

How much does it cost to start a franchise?

Here are the main financial elements of starting a franchise: Franchise purchase fee: This can cost anywhere from $20,000 to $50,000, depending on the license. Minimum liquid capital: A generally good idea is to have $50,000 to $60,000 for a service-based business, and $75,000 to $100,000 of liquid capital for a facilities-based business.

What are the legal requirements of franchising a business in Philippines?

Yes, part of the legal requirements of Philippine businesses is to register your employees with the SSS, PhilHealth, and PagIBIG. You also need to prepare BIR’s withholding tax form for your employees’ income taxes. Note that you need to file this whether you have employees or not. 4. I am a novice in franchising a business.

How to put up a business in the Philippines?

Here are a few basic steps that might help you on how to put up a business in the Philippines: 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.

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.

How do you start a franchise for beginners?

Let's go over each one in a little more detail.Do your research. ... Choose a franchise. ... Attend discovery day. ... Review the franchise agreement. ... Get the funding you need. ... Choose a location. ... Take the provided training. ... Prepare for opening day.

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 much money is needed to start a 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.

How do franchise owners get paid?

How do franchise owners get paid? 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 do I make my own 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.

What are the documents needed to franchise business?

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

What are the requirements to apply for a Jollibee franchise?

What are the Requirements to Franchise Jollibee in the Philippines?Application Form.Investment of P35 Million to P55 Million.Letter of Intent.Vicinity Map of the location.Resume or CV.Attend Basic Operations Training Program.

How does franchising work Philippines?

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 the right to do business using their trademarks, products, services, and even business model and operating systems.

What franchise makes the most money?

What is the most profitable franchise to own? According to the Franchise 500 list of 2021, Taco Bell is the most profitable franchise to own. The food chain has been franchising for nearly 6 decades and is still seeking franchises worldwide. As of 2021, they have 7,567 open units.

Is a franchise a good investment?

If you're a fledgling entrepreneur or a seasoned business person wanting to diversify your holdings, you've probably wondered, “Are franchises a good investment?” The simple answer is yes, especially if a great opportunity presents itself. There is an obvious appeal to starting a business via buying a franchise.

What is Starbucks franchise fee?

What are the Financial requirements for a Starbucks licensed store? You need to pay the licensing fee of between $50,000 – $315,000 and you must have over $1,000,000 in liquid assets to be considered for a licensed store by Starbucks.

What are the 4 ways to become a franchisee?

4 ways to become a franchiseeFigure out your passion and skill set. Buying a franchise business shouldn't just be about facts and figures. ... Prepare to buy-in. ... Investigate franchise brands. ... Speak to experts and existing franchisees.

What is the most profitable franchise?

Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•

How do you become a franchise owner?

What does it Take to Become a Franchise Owner?Establish your budget. Determine how much money you are able to pay upfront, and look into funding opportunities as well.Consider your goals. ... Do your research. ... Reach out to the Franchisor. ... Go through the application process. ... Sign the franchise agreement.

How do I sell my first franchise?

Here are some effective ways to sell your first franchise:Talk to Customers.Get Signage and Physical Presentations.Focus on Social media.Offer incentives to your employees.Sell Opportunity by Being Early.

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.

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 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.

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 letter of intent?

Letter of intent. A letter that includes your contact information and details of your franchise proposal

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!

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 courier service?

As the name suggests, courier services provide fast and reliable logistical solutions for big and small to medium enterprises.

What are the different types of couriers in the Philippines?

In the Philippines, some of the common couriers such as LBC, J&T, JRS Express, 2Go Express, DHL, Ninja Van, and FedEx offer varied services such as the following: Door-to-door delivery.

Why is balikbayan important?

It helps businesses function properly and continue daily operations, especially for local businesses and e-commerce shops. It makes other forms of correspondence and delivery of personal packages possible, just in the case of company documents, checks, and balikbayan boxes.

Why is time important in courier services?

You need to ensure that you put great emphasis on the time element because this is one great way to satisfy your customers. Aside from this, here are other tips and best practices to consider when operating a courier company.

How to start a courier business?

1. Get the Right Vehicle . As a courier company, you need to have the right kind of vehicle to start a business. This part plays a big role in the company’s overall operations, so it is crucial to get this right in one go. When choosing the vehicle, it is best to check a reliable provider.

What is logistics company?

In a nutshell, a logistics company moves packages from one location to another for a certain fee.

Why is it important to estimate monthly expenses?

So, you have operational expenses, and estimating your monthly expenses can help you ensure that the business can continue.

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