1. How is franchising as a business?
Franchising is a business method that makes things easier for the entrepreneur and minimizes his risks.
A new entrepreneur, for example, can start a business with lesser risk and lesser capital if he gets a franchise. A franchise comes with an operating manual that serves as a blueprint to success for the franchisee. Aside from this, a franchisee gets support from his franchisor in terms of training, marketing and etc. Furthermore, since he will invest on a brand that has already been on the market for quite some time, he won’t have a hard time breaking into the market compared with starting a business on his own.
For a franchisor, franchising allows his to expand his business faster and easier through the resources and network of the franchisee.
In the Philippines, how popular is franchising for business owners to venture on it as a way to expand their business?
Back in the 80s, there were probably only about 50 franchises in the country. Most of these were large businesses. In the mid-90s, at the time PFA was founded, there were only about 100 franchises; and most were still large companies. Seeing that franchising can be a powerful tool for economic development, the PFA promoted franchising to businessmen and entrepreneurs as a means to expand ones business. Today there are about 1000 franchises creating about 100,000 businesses, with a good mix of large, medium, small and even micro enterprises.
2. How’s the Philippine franchise industry doing today? Is it affected by the ensuing global economic downturn?
The Philippine franchising sector continues to grow despite the global financial slowdown. In fact, many franchise companies are still pushing through with their expansion program despite the times.
To fully grasp the reason why franchising continues to grow despite the bad economy, we should revisit the meaning of franchising.
Franchising is replicating a successful business. A successful business means it excels in all areas – branding, products, systematization and most importantly, business ethics. All these will make a business tide through any storm. And all these make it an ideal business investment.
That is why, when the economy goes south, a franchise can still afford to expand because it will continue to attract franchisees. These are people who have either lost their jobs or can’t find a good job. There are also those who have realized that going into business is the best way to invest their hard-earned money.
Furthermore, the global economic downturn offers a valuable lesson for all of us – that is, we must learn to reorient our investment priorities.
The global financial meltdown happened because investors put priority on hifalutin, get rich quick schemes, when money should rather be channeled to endeavors that create enterprises and generate employment. I hope that banks will now prioritize lending to brick and mortar businesses – especially franchises, which has a high success rate.
3. What do you think are the pros and cons of franchising?
The advantages and disadvantages of franchising stems from the unique feature of franchising, which puts prime concern on the partnership between the franchisor and the franchisee.
The franchisor-franchisee relationship is an evolving relationship which starts as a sort of parent-child relationship and which culminates to a bond comparable to that of marriage.
It is important, therefore, for both parties to play their part. A franchisor must guide, mentor and take care of its franchisee, especially during the early years. Similarly, the franchisee must allow itself to be guided by its franchisor. He cannot just implement his own plans but rather follow the rules laid down by his franchisor.
For this reason, perhaps, franchising can be quite constricting and limiting for some individuals.
4. Would you know how many franchise industry players—both foreign- and Filipino-owned—in the country today?
According to a study commissioned by the PFA, there are about 680 Filipino franchises and 320 foreign concepts in the country today.
The Philippine Franchise Association (PFA) is an internationally recognized association of franchisors. It is the voluntary self-regulating governing body for franchising in the country and is the country’s pioneer and largest franchise association with members ranging from micro to
large – homegrown and international – involved in food, retail, service and other types of business.
PFA members – numbering presently at 196 – are bound by the Fair Franchising Standards (FFS). By adhering to this Code of Ethics, the PFA members commit themselves to respect and to apply fair set of provisions in the conduct of the sale of their franchises.
5. As a self-regulating body for franchising in the country, how do you help professionalize and standardize the Philippine franchise sector?
Fra
PFA members are bound by the Fair Franchising Standards (FFS). By adhering to this Code of Ethics, the PFA members commit themselves to respect and to apply fair set of provisions in the conduct of the sale of their franchises.
Franchising is a business method that makes things easier for the entrepreneur and minimizes his risks.
A new entrepreneur, for example, can start a business with lesser risk and lesser capital if he gets a franchise. A franchise comes with an operating manual that serves as a blueprint to success for the franchisee. Aside from this, a franchisee gets support from his franchisor in terms of training, marketing and etc. Furthermore, since he will invest on a brand that has already been on the market for quite some time, he won’t have a hard time breaking into the market compared with starting a business on his own.
For a franchisor, franchising allows his to expand his business faster and easier through the resources and network of the franchisee.
In the Philippines, how popular is franchising for business owners to venture on it as a way to expand their business?
Back in the 80s, there were probably only about 50 franchises in the country. Most of these were large businesses. In the mid-90s, at the time PFA was founded, there were only about 100 franchises; and most were still large companies. Seeing that franchising can be a powerful tool for economic development, the PFA promoted franchising to businessmen and entrepreneurs as a means to expand ones business. Today there are about 1000 franchises creating about 100,000 businesses, with a good mix of large, medium, small and even micro enterprises.
2. How’s the Philippine franchise industry doing today? Is it affected by the ensuing global economic downturn?
The Philippine franchising sector continues to grow despite the global financial slowdown. In fact, many franchise companies are still pushing through with their expansion program despite the times.
To fully grasp the reason why franchising continues to grow despite the bad economy, we should revisit the meaning of franchising.
Franchising is replicating a successful business. A successful business means it excels in all areas – branding, products, systematization and most importantly, business ethics. All these will make a business tide through any storm. And all these make it an ideal business investment.
That is why, when the economy goes south, a franchise can still afford to expand because it will continue to attract franchisees. These are people who have either lost their jobs or can’t find a good job. There are also those who have realized that going into business is the best way to invest their hard-earned money.
Furthermore, the global economic downturn offers a valuable lesson for all of us – that is, we must learn to reorient our investment priorities.
The global financial meltdown happened because investors put priority on hifalutin, get rich quick schemes, when money should rather be channeled to endeavors that create enterprises and generate employment. I hope that banks will now prioritize lending to brick and mortar businesses – especially franchises, which has a high success rate.
3. What do you think are the pros and cons of franchising?
The advantages and disadvantages of franchising stems from the unique feature of franchising, which puts prime concern on the partnership between the franchisor and the franchisee.
The franchisor-franchisee relationship is an evolving relationship which starts as a sort of parent-child relationship and which culminates to a bond comparable to that of marriage.
It is important, therefore, for both parties to play their part. A franchisor must guide, mentor and take care of its franchisee, especially during the early years. Similarly, the franchisee must allow itself to be guided by its franchisor. He cannot just implement his own plans but rather follow the rules laid down by his franchisor.
For this reason, perhaps, franchising can be quite constricting and limiting for some individuals.
4. Would you know how many franchise industry players—both foreign- and Filipino-owned—in the country today?
According to a study commissioned by the PFA, there are about 680 Filipino franchises and 320 foreign concepts in the country today.
The Philippine Franchise Association (PFA) is an internationally recognized association of franchisors. It is the voluntary self-regulating governing body for franchising in the country and is the country’s pioneer and largest franchise association with members ranging from micro to
large – homegrown and international – involved in food, retail, service and other types of business.PFA members – numbering presently at 196 – are bound by the Fair Franchising Standards (FFS). By adhering to this Code of Ethics, the PFA members commit themselves to respect and to apply fair set of provisions in the conduct of the sale of their franchises.
5. As a self-regulating body for franchising in the country, how do you help professionalize and standardize the Philippine franchise sector?
Fra
PFA members are bound by the Fair Franchising Standards (FFS). By adhering to this Code of Ethics, the PFA members commit themselves to respect and to apply fair set of provisions in the conduct of the sale of their franchises.
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ReplyDeletewhat are the advantages of franchising
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ReplyDeletepros and cons of franchising