The Advantages of Franchising
By Valerie Tort
Franchising is a way to maximize profits in less time. Franchising is the growing trend in the Philippine business industry. Fast food chains, bakeshops, and even clothing lines are part of the rising franchise business popularity in the country.
Franchise business is another option for those who would like to convert and expand their small-scale business into a large-scale industry. Franchise system may be hard on the budget at first due to the franchise fee and the percentage of royalties the company gets but as the business continues, the entrepreneur would understand why franchising is more profitable and successful than establishing his own business. Here are some reasons why:
1. Mistakes will be avoided in the operation and management of the business because the franchisor’s formula is tested through years of experience.
2. The company the entrepreneur wants to join provides a detailed and hands-on training of managing, operating, and marketing your business. The idea in franchising (franchise fee) is buying the idea and management style of the large-scale company and using the tried and tested management in your own business venture.
You are likely to succeed in your business provided that the businessman takes small steps and huge amounts of time in learning the operation of the business.
3. Since you are under one roof, the incentive of advertising and development of the product is also the franchisee’s benefit. This is another support system in franchising. Less problems and hassle in promoting your business from the time you have acquired your franchise. The mother company will be the one to take care of it.
4. In franchising, the risk of losing big is lessened. Supplies and equipment to be used in the business is purchased at a lower cost since the company orders it in bulk to trusted suppliers and manufacturers. The franchising company can also negotiate better rates in terms of the materials needed for the sustenance of the franchise business branches.
5. The benefit does not only include the monetary gains but also extends to the reputation and trust it built to its customers. The customer will likely to purchase your product more than its counterparts since the customers already know what kinds of products are offered, the quality of the product, the service of the crewmen, and the instant recall it generates in the minds of the clients.
The clients are more likely to deal with a business they know and which expands rapidly rather that create transactions with the company they are not sure of and heard not even once.
6. If problems arise with the franchise, the company is there to assist and rescue from time to time. The assistance will always be available because the whole company would be affected if small problems will eventually lead to greater dilemmas.
7. Secured locations and defined territories are guaranteed in the franchising industry to lessen the competition of the same company and to enjoy maximum profits. This is another surefire way to dominate a specific location and optimize later on for expansion.
8. Trade secrets, ingredients, recipes, etc. are shared with the franchisees together with its established brand name. This ensures that every branch complies with the specific standards of the company.
These are only some of the advantages of franchising a business. Remember that the success of the business also depends of the entrepreneur because he is the one who will be working for the future success of his business venture.
Tags: Franchising Tips, Philippine Franchise, Philippine Business
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14 Responses to “The Advantages of Franchising”
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hi..i’m planning to franchise mister donut..ask ko lang magkano pag nagfranchise ka…thanks
just want to share,… may disadvantage din ang franchising, like,- sometimes kc may mga franchisor na they are requiring their franchisee to pay them yearly a percentage of sales of the franchisee’s business. For instance, the franchisor would be getting 5% of your gross sales or whatever rate written in the contract.
Grabe, sa iyo na nga ung business e, parang kumukupit pa ung franchisor sa yearly income mo.
So, whenever we do something, we should not only focus to the advantages, but also consider the disadvantages.
hello, im planning to have a business, i want to franchise red ribbon bakeshop in our place, may i ask how much the franchise fee.thank you very much
Good morning. Balak ko mag franchise ng red ribbon bakeshop. May i know how how much is the franchise fee and how to apply for it. Thanks
Hello, I am still learning the steps in franchising business and I think I landed on the right track. I hope you wouldn’t mind me asking questions. My questions are:
1. At what level will you be when you also receive a royalty commission/bonus? (is that what you call it?)
2. Is franchising has some MLM style/approach?
3. Does franchising business ask for the franchsingfee upfront or they also give you at least 3months to operate etc.
Thank you.
Hi…I’m an overseas worker wish to start a business around the vicinity of Los Banos, Pila and even in Calamba, Laguna. What do you think the best product or franchise business viable on this location? How much it would cost me to join franchising business? Pls advice.
Thank you.
i am looking for a good product that suites my place here in ormoc city. can you help me.
Hi! Im planning to franchise a pharmacy can you help me to find one. My proposed location is in Tanay, Rizal with 32 sq.meter floor area beside SM Tanay.
Please help me!
Thank you! and God bless!
Good day everyone…
I’d be glad if someone would tell me on how am I going to franchise “Mr.Softee”?
Hi, I am planning to franchise a pharmacy here in our place in Imus, cavite. Can you give me an idea on how much is the franchising fee and the requirements that I need to comply..Thanks…
hi im john christopher and im an ofw…im planning to franchise something in tagbilaran city, bohol but im stil confused coz theres no sm yet here…i think its an advantage but i stil have no idea wat product or establishment to franchise…i earn 80k to 120k a month…
please help me…
Good day!! May I know how much would it be if i plan to franchise a gasoline station, say for example ” flying V”? Would my 5M be enough?
Hi Chariz, P5M is too short for a gasoline station. My hunch is you’ll need P25M to get started. Lots of govt regulations on a gasoline station business. But the upside is, everybody needs gasoline. Just pick a great location!
sana lang yung mga nagpapa franchise, they should give a site assistance to the first timers. may pera ka nga, hindi mo naman mapasok basta ang mga malls dahil palakasan pa din. ang sarap sana mag business kung hindi lang ganito sa atin parati. I’m still trying to get one now, so im working on it. paging site locators sa marikina i want a space for lease in ngi parang, marikina city. email me.