Top 20 Franchise Business In The Philippines – Being an entrepreneur and starting your own business is a common aspiration for many Filipinos. It is dangerous, which is why this goal is rarely achieved.
On the other hand, if you already have capital but are not sure what business to start, franchising can be a good option.
Top 20 Franchise Business In The Philippines
This guide covers everything you need to know about franchising and the top franchising opportunities in the Philippines.
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Get started. What is a franchise? Franchising is the process of developing and distributing a franchisee’s brand and structure. A franchise gives you the trademark, ongoing franchisor support, and legal rights to operate using the brand’s resources in return for your investment.
When it comes to running a business, the cost is usually the owner’s effort, time, and higher income.
Furthermore, even after a company is established, running the day-to-day operations and ensuring profitability are additional challenges that every entrepreneur must overcome. But even then, success is not guaranteed.
The solution may lie in franchising: in this model, business owners can avoid starting from scratch and mitigate some of the difficulties that all new businesses face in the early stages of operations. There are two components to a franchise:
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Technically, the term “franchise” refers to a contract that binds two parties, but it is generally used to describe operations managed by franchisees.
Franchising is a safer bet for first-time business owners and hobbyists because it eliminates the need to build a brand or audience.
Depending on the type of franchise, the benefits of a franchising strategy can greatly reduce the chances of business failure. The two-year success rate is approximately 8% higher than that of private businesses. Advantages and Disadvantages of Franchising A franchise license can be a profitable investment in your future. This is why it is so important to understand what franchise systems offer before making a decision or signing an agreement. While there are many benefits to becoming a franchisee, there are also a few risks that you should consider. The following list of pros and cons will help you decide whether or not franchising is the right choice for you: Franchising Pros:
In terms of support from franchisors, some help with pre-opening requirements such as site design, evaluation, construction, and in some cases grand openings, employee screening and consulting. The franchising cons
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By the way, in terms of capital and initial investment, the franchise fee is a one-time upfront fee, which allows you to access the brand’s trademark, logo and other secrets as long as you comply with the terms and conditions outlined in Your agreement.
Royalty payments in the Philippines range from 3% to 10% of monthly gross sales. This means that your net income can be significantly affected by this monthly fee (although not all franchisors charge royalties, but instead allocate a similar fixed income ratio to the market).
Another issue is renewal — based on their evaluation of your relationship and performance during the contract, they may decide to stop working with you. Types of Franchises in the Philippines The two most common franchises in the Philippines are:
In business format franchising, the franchisor provides ongoing support and training, which is critical to the franchisee’s success. Jollibee, Starbucks 7-Eleven are few internationally recognized brands that offer business format franchising in the Philippines. The difference between these two franchises is the lack of access to training, support and merchandising in product distribution agreements. Due to the lack of these restrictions, franchisees have more freedom to run their business. Despite the autonomy, franchisees still have to follow the rules, such as whether they sell the products on an exclusive or semi-exclusive basis. Vehicles and heavy machinery are examples of products that use product distribution franchising. How to Choose the Right Franchise for You Entrepreneurs in the Philippines have many options for starting a franchise business. However, this makes finding a franchise that suits your needs a daunting task.
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As for checking the legitimacy of a franchise, you can check its membership in local franchise groups. These include popular directories such as the Philippine Franchise Association and the International Franchise Association of the Philippines. Now, before you close the deal, always contact the franchisor before you make a decision: get in touch with them and ask for more information. Although most franchisors have information about such deals on their sites, you’ll want to know more about working with them. Getting to know your franchisor will help you determine if you are both a good fit. Convincing people is easy if you truly believe in the product and business you are franchising. Top 27 Franchise Opportunities in the Philippines After considering all the factors above, if you are considering starting a franchise in the Philippines, below is a list of 27 opportunities. Our list contains many budget friendly and internationally recognized franchises to help you start your business. We have divided them into categories for your easy viewing: Food Kiosks or Carts Food carts and kiosks are ideal for amateur entrepreneurs because they are affordable, with some franchises starting as low as 20,000. Filipinos like fast and cheap. Food that doesn’t compromise on taste or quality, that’s why food kiosks are so popular. Finding a place with lots of people, such as a shopping mall or station, can help you strategize. Here are some of the most profitable and popular food cart franchises in the Philippines: 1. Potato Corner Founded by Joe Magsaysay, Potato Corner started its first food cart in the early 90s, inspired by the trendy flavor of popcorn. A year later, he began franchising — opening 74 successful locations within a year. Cinco Corporation, the company behind Potato Corner, currently offers several franchise packages depending on the type and location of your franchise.
Each package includes training for the franchisee and staff, uniforms, small appliances, pans, freezers and initial supplies. In addition, the initial investment eliminates annual franchise fees of 3 to 5 years, depending on the type of cart.
2. Hong Kong Style Fried Noodles Hong Kong style noodle stalls can be found everywhere, and you’ve probably come across them while running around in the Philippines. This popular local franchise has established itself as a leader in food carts thanks to its strong branding and reputation among Filipino consumers in malls and public spaces. Founded two decades ago by a group of young entrepreneurs, Asia Pacific & Global Franchising Corporation (AP & GD Co.) launched Hong Kong style noodle kiosks. Currently, their products include noodles with sauces that can be customized to meet even the needs of the eater.
For additional support, they provide initial equipment, uniforms and promotional banners along with operation manuals and video training. You can also make your own cart and buy all other inclusions from them for only 15,000 pesos. They have customized packages for individual kiosks and carts that can be adjusted to suit your business plans.
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3. The Famous Belgian Waffle The on-the-go waffle was created when Euclid Cesar, CEO of Innovation Food Resources, realized there was a lack of innovative snacks on the market. In the year In 2012, the famous Belgian Waffles opened its first kiosk and received a huge number of visitors in the first few weeks. Expanding to 100 locations in its first year, it was an instant hit with locals, so it’s clear that it has great potential.
A popular Belgian Waffles franchise comes with startup assistance, pre-operational training and ongoing marketing support to help you set up your business successfully. However, it is important to note that their franchise agreements are valid for three years at a time.
4. Lydia Lechon Lechon or fried pork stalls are a staple in the Philippines. But Lydia Lecon stands out as the country’s biggest retailer. Opened by couple Lydia and Benigno de Roca near the Pasay City Church, the duo wanted to further spread their love for Cebu-style chon. In the early 90’s, Lydia Lechon became popular and was served in famous fine dining hotels in the Philippines including Hyatt and Sullo. In the year In 1986, Lydia’s Lechon, the first self-serve restaurant serving whole lechon and seafood paella, was launched. Although the business was intended to remain family-owned, the corporation sold its first franchise in 2005. Now they have more than 20 successful branches nationwide and continue to cook.
Each option facilitates access to opening assistance, a loanable operation manual, use of a brand name, and their purchase program. However, it is important to note that if you decide to continue with Lydia Lecon, franchisees are responsible for acquiring, leasing and building their kiosks and stores. Additionally, they do not provide any equipment, supplies or restaurant equipment.
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5. Tapa King Advertised as a “hole in the wall”, Tapa King opened its doors in Makati in 1987. The counter is mainly used by employees who need a quick solution for lunch or breakfast before starting delivery to the surrounding buildings and areas. . Tapa King expanded to 14 branches
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