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Wednesday , 10 August 2022

4 Great reasons to franchise a business in the Philippines

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Starting a business is one way to become your own boss, give up your 9-5 day job at some point, and be in control of your time and livelihood. Some people are not cut out to develop new business concepts, however. Are you one of them?

This MANAGING YOUR MONEY series is sponsored by Western UnionIf so, franchising could be the best solution for you. It is defined as an arrangement where the franchiser gives a franchisee authority to use its trademark or trade-name and the entire business system.

In the Philippines, business franchise is a booming venture, what with more companies making themselves available for franchising, including popular fast food chains. If you are living abroad and want to do business in the Philippines, getting a franchise can be a viable option. Endorsing the start up to family members or relatives is made easier than when having them to build the business from ground up.

So why take the plunge on Philippine franchising opportunities?

  1. The concept already exists
    With franchising, you can skip this complex part of starting a venture and just go right on to opening up shop and managing it. No brainstorming necessary. What is even better is that the best franchises are tried and tested, so risk of failure or loss is minimal.
  2. Guidance and support are provided
    Most franchisers provide a franchisee everything necessary to run a business – a team trained in planning, marketing, customer relation and business operation.You are also given guidelines on how to use the franchisor’s business model to ensure that standards are met. By simply following the guidelines and observing the team provided, you can learn many things about running a business.
  3. Stronger brand recognition
    With a business franchise, you don’t need to define your market as it is already there. If you franchise a popular and successful business, brand recognition is instantaneous. The brand would probably have a loyal customer base already and you just need to build on it.
  4. Safer business option
    With a business system already in place, a franchise would definitely have a complement of business model, structure, operations and processes that has already been tested and proven effective and efficient. The brand owner or franchisor took the fall many times over already so you don’t have to suffer the same business debacles. Risk is therefore minimised.
Flickr_Brian Evans_franchising_1080
This hamburger stand is one of the fast-rising franchise businesses available to entrepreneurs in the Philippines. Disclaimer: This publication does not endorse nor have any connection to this particular franchise. This image has been included in this article for illustration purposes only. (Photo by: Brian Evans | Flickr)

Are you ready to franchise a business in the Philippines? You will need to prepare the required paperwork: application form, site location proposal, Letter of Intent to Franchise, and other documents the franchisor requires. The good news is there are franchising organisations in the Philippines that can help in your venture.

  • Association of Filipino Franchisors Inc. or AFFI (affi.com.ph) is the prime trade organisation in the Philippines that is committed to promote micro small and medium enterprises through franchising.
  • Philippine Franchise Association or PFA (www.pfa.org.ph) is the pioneer in the Philippine franchise organisation, and focuses on expanding Philippine franchises in and outside the country by creating programs for business opportunities.

Both organisations have legitimate franchisor-members and extend consultation and mentoring for aspiring franchisees.

While getting a franchise facilitates owning a business and minimises the difficulties of setting up your own venture, keep in mind that the stability of the franchised brand is no guarantee of business success.

You still need to put in the hours of hard work, including hands-on store supervision, financial management, management of a dynamic team, building a customer base and compliance with franchise business imperatives. After all, you traded the cost of time and effort for a start up with a franchise fee, and that is not cheap.

Did you find this article useful? Do you have some ideas of your own that you can share to our readers? Share your experience by leaving a comment below.

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