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Franchising as a concept


By Teodoro P. Estacio

Teodoro P. Estacio

Teodoro P. Estacio

Believe it or not, Filipino brands are now in the global market. Thanks to franchising. It is undeniably a strong vehicle to draw in more inward remittances for the economy and at the same time draw attention to the ingenuity of the Filipino entrepreneur.

Franchising is a multi-peso business in the country covering a wide range of products from – flavored French fries, convenient store, hamburger chain, gas and oil distribution, pharmacy and toiletries, pizza making, Filipino bibingka, water stations, chicken house, bakeshops and donuts, and other known brands.

Why is franchising so popular nowadays? It is not exactly the franchise fees – no! Some franchise fees are actually priced for the big boys only!  But what makes it popular is that the all the products have emotional tie up with the consumers so selling and market development does not pose a challenge.  Some franchises require a lot in terms of fees and royalties but the payback period and return on investments(ROI)  is definitely a winner from the Investors point of view.

Franchising is also popular because most of the franchisor provides excellent training and development program that allows the franchisee to understand very well the processes and effective execution of the franchise. In addition, logistical support is not only efficient but effective as well.

As we visit the countryside, we see the success of the bakery and bakeshop franchise replacing the traditional “pan de sal” selling of many sari-sari stores. Convenient store chains are now slowly replacing the “sari-sari” store while in many malls and entertainment places, coffee has become affordable to the Filipino masses thru franchised local coffee shops.

Anyone who wishes to establish a franchised business may see the Philippine Franchising Association (PFA) or the Association of Filipino Franchisees Inc. ( AFFI ). These two leading associations ensure not only the growth of franchising in the country but the development of the Philippine market. And if you are serious on how to go about franchising your product or services, an independent corporation specializing on conceptualizing and manualizing them to be ready for franchise can be tapped for a reasonable professional fee.

So next time you want to share your invention, your products or services, or profit from your creativity, think about franchising. It is not far fetched that we shall see in the years to come that practically all aspects of our activities during our waking hours are franchised i.e. from beauty salons, to gyms, to coffee shops , super markets, fast foods and the like are easy to be franchised. And who knows, mortuaries are now actively advertising? Franchising is next? We do not know.

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