Tag: Philippines

The success of franchising business in the Philippines didnt only contribute to the growth of the sector, but also the growth of the Philippine economy due to its demand among the wealthy as well as the average Filipino.

Franchise Businesses Today
Unlike in the past in which most franchise business in the Philippines were large businesses such as convenient stores and fast-food restaurants, most franchise businesses in todays market are small businesses such as food-carts and food-stall businesses.

Other than its relatively smaller size compared to convenient stores and restaurants, food-cart and food-stall businesses can also offer a relatively lesser expensive franchising cost, in which according to many business experts in the Philippines today, can go as low as 20,000 Philippine Pesos a franchise.

Because of its affordability, food-cart and food-stall businesses quickly became popular and in-demand in the Philippine market, in which many business experts have said, had largely contributed to the growth and success of the franchise industry in the Philippines.

Contribution to the Economic Growth of the Philippines
The growth of the franchise industry had also contributed to the growth of the Philippine economy, according to the PFA or the Philippine Franchise Association which is the pioneer and biggest franchise association in the Philippines. It is the voluntary self-regulating governing body for franchising in the country with 180 franchisors and allied members nationwide.

According to the PFA, due to the popularity of food-cart and food-stall businesses, the number of Franchising business Philippines in the country had significantly grown from 50 in the 1990s to over a thousand today.

This growth had also reflected on the growth of the Philippine economy. According to them, the massive growth of the franchise industry had created thousands of enterprises and generation of hundreds of thousands of jobs, making franchising an important tool in the countrys economic growth.

Other contribution include the entry into the international market of Filipino brands and concepts, development of the Fair Franchising Standards, which ensures just and mutually beneficial business dealings between franchisor and franchisee, and the growth of the Philippines as the franchise hub of Asia when it comes to the development of franchise concepts.

Franchise businesses, according to many business experts, had also become a popular solution to poverty, in which many Filipinos had invested in acquiring a franchise of a small food-cart business so as to secure their future and the future of their family.

The government had also used franchise businesses as their solution for OFWs or Overseas Filipino Workers who chose to stay in the Philippines with their family rather than to work abroad.

Franchising is a popular trend in the Philippines today, particularly now that many Filipinos have started their own businesses through acquiring a franchise. A popular example of a franchise business today is food-cart or food-stall business.

Franchising Trend in the Philippines
Although it was only a few years ago in which franchising gained a lot of popularity in the Philippines, this specific business process has been in the Philippines for decades. It was because of this unique business process that many foreign businesses were established in the country, such as 7eleven and McDonalds.

Today, because of new Franchising business Philippines that requires lesser costs and maintenance, such as the popular food-cart or food-stall business, many Filipinos were able to acquire a franchise business for themselves. And it was because of this that franchise businesses became a popular trend in the Philippine market.

Why Food-Cart Businesses?
Like many other popular types of franchising businesses, food carts started as individual businesses owned by individuals. However, a number of franchising companies in the Philippines foresaw its success as a franchising business and started to acquire the rights of these businesses from their owners, while other food-cart business owners had also started their own franchising.

Since then, a new concept of franchising business was introduced in the Philippine market which aims to accommodate the needs of the average Filipino. This is the food-cart franchise business which is now considered as one of the most popular and in-demand franchise business Philippines. So what are its advantages?

Affordability One reason why these types of franchise businesses became popular is because of its affordability, in which many of todays food-cart franchise businesses can be acquired for no more than P25,000 Philippine Pesos.

Simplicity Another reason why these franchise businesses became popular is because of its simplicity which requires lesser maintenance costs and effort. And because of its relatively small size, these businesses can also be easily manned by one or two personnel, which make these businesses even more popular in the country.

Success of the Franchising Industry
According to the PFA, or the Philippine Franchising Association, the franchising industry had grown immensely since the start of food-cart or food-stall franchise businesses in the Philippines. Because of its affordability, many Filipinos were able to start their own successful and profitable business through franchising.

Franchise businesses had become a popular trend in the Philippines, according to many business experts. The reason why is because of todays available franchise businesses which aims to offer the same opportunities that wealthier Filipinos have had with franchise businesses. This is when food-cart and food-stall Franchising business Philippines became popular in the country.

Success of Small Franchise Businesses
According to many business experts, franchising had long been practiced in the Philippines though it was only recently that type of business process became popular. The reason why is because most franchise businesses available in the past were large businesses such as convenient stores and fast-food restaurants, in which only the wealthy, as well as companies and corporations, can only afford.

Because of this, franchise businesses were only available for those who can afford one. However, this was until food-cart and food-stall businesses became popular in the Philippines, according to many experts, which had also brought success to the franchise industry of the Philippines.

So what made these small franchise businesses successful?

Inexpensive Franchise Cost
One of the many reasons why small franchise business Philippines such as food-cart and food-stall businesses became popular and in-demand in the market is because of its far lesser expensive franchise cost.

Although still expensive, in which a successful food-cart franchise business today can cost around 250,000 Philippine Pesos, this is far cheaper compared to the franchise of a large successful business such as convenient stores and fast-food restaurant.

Unlike larger businesses, which require larger commercial space and construction, most food-cart and food-stall businesses seldom require any construction, though it will still require a high foot-traffic location, though not as large as what requires of a fast-food restaurant.

Simplicity
In addition to its affordability, franchise businesses are also known for its simplicity in terms of requirements.

Most franchise businesses, particularly larger businesses, normally require credentials of the franchisees capability in handling a business, such as years of experience in a managerial position, or have attained an MBA.

Small franchise businesses, however, doesnt usually require such credentials, which is also the reason why it made it easier for more Filipinos to acquire a food-cart and food-stall franchise business.

Because of its affordability and simplicity, these types of franchise businesses quickly became successful in the Philippines, particularly now that food-cart and food-stall businesses had widely spread all over the Philippines.

What are the advantages of franchise businesses? According to many business experts, franchise businesses had gained a lot of popularity in the Philippines today. The reason why is because of a number of new franchise businesses available today which aims to give the same opportunity that wealthier Filipinos have had with franchise businesses to the less wealthy Filipinos.

Small Franchise Businesses
The growth of food-cart and food-stall businesses is not only because of its affordability, but also because of the many franchising enterprises in the Philippines that offer lesser expensive Franchising business Philippines deals to Filipinos. So what are the differences between starting ones own small business from acquiring a franchise?

Less Effort in Marketing and in Profiteering
One reason that makes franchise businesses more popular compared to starting a business from scratch is that franchises allow its franchisees to use their successful business-model for their own gain. This makes it easier for franchisees to gain as much income as other businesses have had in years, which would normally take a lot of time and effort for a start-up business.

Simpler Business to Handle
Another advantage of franchising is that it allows people to start their business with everything they needed, from the marketing paraphernalia they needed to make their business known, to the equipment, uniform, and stock to be used for their business. This is much simpler compared to starting a business from the ground which will require their owners to look for a reliable supplier which will give them the stock they needed as well as their equipment.

Benefits of Smaller Franchise Businesses
The popularity of franchise business in the Philippines was due to the rapid growth of food-cart and food-stall businesses. This is because of the kinds of benefits that these businesses can offer to its residents that made these types of housings even more popular and in-demand in the market.

Lesser Expensive Franchise Cost
One reason why franchise business had gained a lot of popularity and demand in the market is because of its lesser expensive franchise cost. Compared to larger franchise businesses, such as convenient stores and fast-food restaurants, food-cart and food-stall businesses are far more affordable, in terms of franchise cost as well as the cost for its construction.

Far Simpler Business
Unlike larger franchise businesses, food-cart and food-stall businesses dont require any experience to manage and to make it grow. Unlike larger franchise businesses, these small businesses normally dont require their franchisees to have worked in a managerial position for years, or have acquired an MBA to acquire a franchise deal.

Over the past years, franchising has become one of the fastest routes to business success in the Philippines. Both local and foreign brand names find themselves in a tight competition to gain a sizeable margin of the Philippine market. The franchising industry has also contributed significantly to the growth of the economy in the Philippines.

Franchising can be viewed from two perspectives: the franchisee and the franchisor. For the franchisee, a franchise is like a business wrapped in a package, with all the goods, services and operating manual in it, ready for roll out and operation. Counting on the elements of a well-established brand name and a tried-and-tested system of running the business, the franchisee receives many benefits, including access to information and technology that comes with the business, training and tech support of all aspects of the system, and the fact that a name that has already built its reputation for a number of years is a lesser risk than building a name from ground zero.

Franchising, from the franchisor’s point of view, has a different meaning. It presents an opportunity for business expansion; something that would have been difficult is done by them. Franchising for them is convincing the buyer (the franchisee), that their business is a good buy and worth investing in. Having a franchisee ran an outlet of their business means they can extend their products and services to more people in a wider coverage.

Buying and selling a franchise business in the Philippines is governed by the Philippine Franchise Association. This body gives guidelines and policies to regulate and promote fair practices on franchise activities by both local and foreign brand names. It is also tasked at providing assistance to franchise holders and buyers like financial programs, seminar workshops and information dissemination.

So much does a franchise cost in the Philippines? That would depend on a number of things, like the type of product or services offered, the size and location of the intended franchise outlet, layout / design of the outlet, beginning stock inventory, facilities and equipments needed along with its operating and maintenance cost, insurance and other pertinent expenses. Other equally important matters to consider include the franchise fee, training programs that the franchisor would be providing, royalty fees, feasibility studies to be conducted, marketing campaigns and advertisements.

Franchise for food cart businesses are generally cheaper to acquire, and prospective buyers can start owning these for as low as fifteen thousand pesos to an average cost of one hundred thousand pesos, depending on the type of food being sold and the size of the cart. A water refilling systems cost around two hundred to five hundred thousand pesos to operate. Other bigger franchise, like gasoline stations and food manufacturing and retail business, can go as high as five to ten million pesos, but the returns are well worth the investment.