The Things You Must Know About Franchising in the Philippines

Filipinos do want to have their own business. But it is a daunting task to do because of various factors such as the capital, requirements, and amount of effort require making the business successful.


However, the risks of building your own business are worth it if you play your cards right. Since a successful business can help you get out of debt and eventually lead you to financial freedom, it will never be easy.


The Easiest Way to Conduct Business

One way of having a business right now, the easiest way possible is by franchising. This type of business model is getting popular with Filipinos because it is plug and play. Or in other words, the business is already set up; you just have to take care of it.


In this article, we will tackle the ins and outs of the franchising business in the Philippines, to help you start. It is a pursuit that never ends because it requires knowledge on the current trends of franchising


How does franchising works?

It is when a company has a business model that is already put up. Franchising right now is more common in the food industry because food is a basic need. So there is no stoppage in the demand for foods.


So the owner of that business will decide if they want to sell their food franchise in Philippines. If so, they will be called the franchisor. They will be the ones who will sell you the right to use their business name and provide you with the equipment to open up your business as a franchisee.


In short, it is just the same as any other business. You will put the business, spend time and money on it. But the only difference is you will use the brand name of the franchise that you availed. The equipment is provided as well most of the time. 


So what is left is for you to do is to market your business a bit. Although the name of the business itself will market itself for you, if you want to get things faster you must do the work too.

As the number of franchisee increases, the growth of the company is expected. Mostly, the company with the most number of franchisees is the ones that have products that really sell.


What are the different types of franchises?

In this industry, you will encounter two types of franchises. In this subchapter, we will tackle that.

  • Product distribution. This is all about availing a franchise in order to have permission to sell the products of the company.


  • Business format. This is where you have to put up a physical store with the name of the company. The best example of this is the food industry. You can avail of a franchise and then put up the products on your stall.


The Advantages and Disadvantages of Franchising

This kind of business is a mutual relationship between two entities. One is the franchising company and the other one is the franchisee. 


The franchising company could give the franchisees the following benefits:


  • They provide training. They will give you the necessary tools needed for you to be successful with your newly-purchased franchise.


  • Lessens time required for marketing. Since you already have the brand name integrated into your business, people already know what you are selling. 


  • Easy permits approval. Since your business is tagged with an existing company, getting approval for a business permit becomes easier.


  • The marketing team of the company will be the one responsible for product innovation. So it means that you will not experience any stress at all thinking of the next product that you should sell.


  • Ongoing support. In case you need help regarding something then you can just contact them and they will help you with that.



  • Costly. Availing a franchise from a well-known company will cost you a lot of money. You must be ready for it because premium quality never comes cheap.


  • Your control has boundaries. Since you only get rights to use the name and the concept of a particular franchise once you bought it, you are still bounded by the rules of the company. It only means that you are not allowed to modify any of the services without the permission from your franchisor.


  • Domino effect. If something negative happens on one franchise, the reputation of other franchises will be affected. This is because you are tied with the same name that is why anything happens to a separate franchise, yours could get affected too.


Being a franchisee: Knowhow 

Wellbeing a franchisee comes with great responsibilities. Just like with other kinds of business, you should be ready. Here are the steps that you need to do and know in availing of a franchise.


  • Select a franchise. First, you must know what kind of business you want to enter. It is better if you will go for a business that you have some knowledge. 


  • Know your budget. It is important that you have the idea of how much budget you want to put in on the business. By doing so, you can select the right company that you will invest your money in to.


  • The reputation of the franchising company. Know if the company is legit and has a good reputation for its respective industry. This will give you assurance that your money will not be wasted.


  • Check the saturation of the industry. This involves looking for the possible competition that the particular industry has. As a result, you’ll be able to know if it is still worthy of buying a franchise that is catered to that specific industry.


  • Apply for the franchise along with the documents needed. You must follow the guidelines in applying a franchise. This is shown on the terms of the franchisor which will be provided to you. Submit the right documents and fill-up the form completely.


Now you know the essentials when you buy a franchise in Philippines. You’ll have higher chances of succeeding. Just make sure that you are dedicated to making that business successful no matter what.

Stay updated with the latest franchises