Philippine Franchising 101 – the name of the game
| Posted by Carina Roncesvalles in Business Tips,Franchise Opportunities on 31st January 2007 |
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He noted that franchising provides opportunities for both the franchisor and the franchisee. “For a franchisor, the advantage of franchising is enhancing the brand equity. As more franchisees establish his/her brand in different locations the more value the brand becomes. In fact, it may even reach a point of becoming a household name connected with a product or service,” Bartolome said.
“For a person wanting to go into business, getting a franchise presents a much better advantage. He/she is getting into a business with a name, identified products and services, and the concept has been proven and acceptable. The last is getting guidance from the franchisor who has been to different trial and error. Franchising therefore presents a much more advantage than a start-up,” he added.
Chadwick Ragas, president of Ice Monster that offers iced dessert in different flavors, noted that franchising cuts short the learning process in the business. He added that this allows the franchisee to focus on strengthening the product in a specific location.
“There is a concept already, business model, and brand. You do not have to experience the mistake of the franchisor,” Ragas said.
Carson Tan, Chief Executive Officer of Aquabest noted that would-be franchisees should “know the business he is entering into and know the company he is partnering with.”
Patrick John G. Ricafort, Assitant Vice President for Business Development and Franchise of Netopia said location is very important in putting up a franchise, thus choosing the right location for the franchise should be given utmost attention and careful study.
The DTI noted that the preferred locations are inside a mall, particularly those near cinemas, food courts, main entrances, and entrances of main parking lots. It added that outside the mall, the preferred locations for franchises are near churches; public markets; pedicab, tricycle or jeepney stops; schools; municipal halls; commercial areas; loading and unloading area for public transport; and entrance of populated residential community
Julie’s Bakeshop, for its part, said aside from good location, “personal presence and hands-on management is essential.”
“Franchisees should also value the importance of their people since they are the life-blood of the business. They should not only be proud of giving them employment opportunities, but also make them feel contented and dignified with the job they are into. It is also a key that one should have financial discipline in running whatever business. Being conscious to cost effectiveness is one key in the success of the business in the speedy return of investment,” the company said.
Lee Perez, Franchise Marketing Manager of Philippine Seven Corporation, meanwhile, said product viabilty is important in the franchise business. “The product must sell in order for it to be marketed and inviting for franchisees to invest in it. Most successful franchise program also has accountability from both sides of the coin – headquarters and franchisee. A lot of fly by night franchise programs just position themselves as your supplier, resulting in poor or no support at all. By co-investing in the product, you assure your franchisee that you will be there regardless of what transpires in the business,” Perez said.
Bartolome further said the franchising industry offers a lot of promises to the budding entreprenuers as it continues to fluorish as an industry in the Philippines.
“I certainly believe franchising has made a mark in the business community. There are companies which before never even thought of using franchising as a scheme for expansion and now they are into the stream,” he said.
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About Carina Roncesvalles: Carina Roncesvalles is a Journalism graduate from the University of the Philippines in Diliman. Carina has worked as a Reporter for BusinessWorld. She is nowworking as a full-time writer for a Makati-based public relations company.
8 Responses to “Philippine Franchising 101 – the name of the game”
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give more idea regarding franchise thanks
I spend most of my free time online for pleasure. I know all websites, and this is the one about real events that really took place in the world.
i’m a retired ofw. pls. help me iwant to have a business of my own.
Thinking of residing here in a small town of Zambales and would like to open a franchise that dont cost too much since people dont have much money to spend here.
i want to have more knowledge about franchising its advantages and disadvantages. i am working here abroad and i want to have business and i am interested in franchising business but im still confused on this matter, i hope you can provide me more info regarding this matter. thanks and more power.
hi..i want to have my own business, since i have 3 choices can you help me coz i dont know the things like where, who should i talk to when it comes to franchasing a netopia, siomai or hongkong style noodles? i want to know everything coz i have a good maybe site at mrt munoz that we know its still on going construction..can you help me with this..thank you..
Hello! At the moment I’m here working in abroad and I’m planning to put up a water refilling station in our subdivision. Hope i could find a company that would need a capital of 100K-150K for a franchise. Please advice. Thank you and more power!
I am interested on the Tacomio franchise in Janiuay, Iloilo that I would like to fund for my sister that lives in there. Can you e-mail me all about Tacomio & requirements to open this franchise. You are the first franchise I am interested so please reply “asap”.
Thanks,
Maria Celina Y. Stowe
Macon, Ga USA
7/11/10