Business Franchising in The Philippines

Many western people especially the Americans have the so called “American dream.” The American dream is somewhat achieving all your goals and aspirations, it can be associated to success in your career, business, owning an expensive apartment, being in the high society and more.

However, we Filipinos also have our dreams. Let me simply call it as the “Filipino dream”.

Let’s face the reality, a lot of Filipinos wanted to work abroad so that they can find a better life, to earn more than enough that they can buy their wants aside from their needs.

Owning your own business will really turn the tables if it goes well, for people who don’t have a large sum of money they tend to start a small business in food, clothing and various services.

However, for people who are financially stable, they invest in franchising.

Franchising is a business method wherein you get a license that allows you to have access on the existing business’s trademarks, processes and other important information for you to do so.

The advantage of investing in franchising is you don’t have to start from scratch, meaning you have the edge, you have the existing trademark, you have the reputation, all you have to do is work your way up and build up your strategy.

Meanwhile, there are 2 main types of franchising. First is the business format franchising and the product distribution franchising.

When we talk about business format franchising, it is more complex simply because you have to study all the details of the existing business that you are franchising.

However, for the product distribution franchising, it’s a simple dealer-supplier system where franchisees are allowed to access the franchisor’s trademarks but they also have to pay certain fees.

Like any other thing in this world, there are also pros and cons.

The advantage of investing in franchising as mentioned above, your brand is now established and your investment will return to you faster than making your own brand from scratch. The system, stock and other logistics are also in place you just simply have to follow it. Lastly, you always have the franchisor’s support incase you run into some trouble with your business.

On the other hand, the cons and risks of franchising includes limited control, expensive fees and the effects of brand reputation.

For people who wanted to invest in franchising it is not an easy game, first you need to study the brand that you wanted to franchise. You must consider the budget, location, the competition and of course good management. (MLC)