January 2018 – Franchising POC

Franchising Industry To The Growth Of The Philippine Economy

Posted on January 31, 2018 by blogger

What made franchising a popular trend in the Philippines? Franchise businesses, such as food-cart and food-stall businesses, had gained a lot of popularity and demand in the Philippines. The reason why is because of the opportunity for Filipinos to start a successful business, while it also serves as a popular solution to poverty by the government.

Franchising Industry in the Philippines
According to the PFA, or the Philippine Franchise Association, the franchising industry of the Philippines had grown immensely since the start of small Franchising business Philippines, such as food-cart and food-stall businesses.

In a report by the PFA, the number of franchises in the country had grown from only over 50 in the 1990s, to over a thousand since 2009, and it kept growing even today.

Its growth was a major milestone in the franchise industry of the Philippines, and the government had also seen its potential as a solution to the growing problem of poverty in the Philippines. A popular application of franchise business by the government is when OFWs from Libya had fled the country to return home.

Because most of them doesn”t have any work in the Philippines, the government had gave them a free business management course on how to manage a small business, particularly managing a franchise business such as a food-cart or food-stall business.

In addition to that, another contribution that the franchise industry of the Philippines had given to its economic growth is by providing Filipinos with more jobs. According to the PFA, the growth of the franchise industry of the Philippines had created thousands of enterprises which generated hundreds of thousands of jobs, making franchising an important tool in the country”s economic growth.

Accomplishments for the Philippines
The growth of the franchise industry of the Philippines had also garnered a number of recognition for the Philippines in the world market.

According to the PFA, the growth of franchise business in the Philippines had recognized the Philippines as the “franchise hub of Asia” when it comes to the development of franchise concepts. This had also allowed entry into the international market of Filipino brands and concepts.

These and other achievements have made franchising the preferred business method for more and more entrepreneurs “” both aspiring and established.

Franchise Opportunities In India

Posted on January 26, 2018 by blogger

Franchised operations in India are increasing by the day. Being geographically vast and culturally diverse, India offers the most favorable franchising environment. While companies benefit by having many profit making outlets in different parts of the country, franchisees in India benefit by being able to generate good returns with little investment and risk involved. Entrepreneurs are making the most of India’s franchising market and growing economy by becoming successful franchisees. Indian franchisees can now choose from a plethora of international as well as domestic franchising companies. There are numerous attractive franchising options available in various sectors.

Ever since the franchising boom in the nineties, there have been many success stories. Franchisees in India helped many businesses grow and establish, while also gaining immensely from their business ventures. Examples of international franchises that have been successful in India include food and beverages giants such as Subway, Mc Donald’s and Kentucky Fried Chicken among others. Indian companies that have benefited from franchising include names such as Barista, MRF, NIIT and Apollo hospitals among others. It’s not just the bigger companies; smaller international and domestic companies also look for franchisees in India. The capital required for such ventures would be smaller when compared to highly reputed companies. The downside however, is that the risks are more, since you cannot ride on the popularity wave generated by the reputed companies.

Depending on your choice of business, you can either work from home or from an outside location. The initial capital you may require to start a franchising venture will depend on the type of business and the franchisor’s requirements. Most home-based franchise options are suited for work-at-home women. Cosmetics, healthcare products, services, home business household products and e-commerce ventures, make for convenient yet rewarding franchising options. Franchisors provide training and support and your business can gain from the image and professionalism of the franchising company.

Franchising allows entrepreneurs to have their own business, without many of the risks associated with a start-up business. Franchising also offers you great income and a flexible work style. But, as a potential franchise purchaser, you need to carefully consider the finances and risks associated, prior to starting your business. Read Franchise Plus to learn about the benefits, profits and risks associated with franchising in India. We help you make an informed franchising decision for a successful franchising venture in India.

Financing A Franchise Business Purchase Loan In An Economic Downturn Canadian Franchising Loans Ex

Posted on January 22, 2018 by blogger

The right approach. That’s definitely what it takes to finance a franchise business purchase in somewhat challenging economic times.

The majority of aspiring franchisees in Canada look to banks and specialized finance firms when investigating the purchase of a new or existing franchise business. Let’s investigate successful criteria and methods for completing the purchase of such a business.

Do Canadian banks finance a franchise? That naturally is the instinctive first ‘ go to ‘ when it comes to the entrepreneur’s choice of completing a business purchase in the franchise industry. Broadly speaking they don’t specifically finance franchises outside of specialized government or franchisor programs.

If you have a stellar personal net worth and credit rating we suppose that many banks would consider some sort of term loan based on collateralizing your personal assets… that naturally is not our recommended strategy, as we hav always felt its important to separate your business and persoanl life when it comes to finances.

Jut how important is your personal credit history as well as your overall financial profile… what the finance folks call you personal net worth – simply speaking ‘ what you have ‘ and ‘ what you owe’! We assure clients that a strong emphasis is placed on your personal credit and business background – typically you would want a ‘ beacon score ‘ at the credit bureau to be in excess of 650.

If you do choose to secure a franchise with personal assets you’ll be asked to provide collateral such as a home mortgage, etc. Again, as we said that’s not our recommended strategy.

So if the banks don’t finance franchises in Canada who does. Are you ready? Banks! What do we mean by that seeming contradiction? Simply that the majority of franchises in Canada are financed by the banks, but via vehicle known as the BIL/CSBF loan. It’s a program run by the federal government which many banks have adopted as a solid vehicle to finance franchises in Canada.

The basics of the program lend themselves pretty perfectly to financing a franchise business purchase, and the structure of these loans fits what you are trying to achieve. Why? Simply because terms of the loan are from 5-7 years, rates are commensurate with many other types of business financing, with the ‘ kicker’ being that you only are required to guarantee 25% of the loan.

Will a franchisor step in to help you finance your business? That’s a question we get a lot, and the answer generally is ‘ NO ‘. In a number of cases though franchisors have worked out packages that can more easily facilitate the bank completing a financing. This tends to work with larger brands and larger business acquisitions in franchising. The bottom lone, don’t expect internal financing from your franchisor.

Other key aspects of successfully finance a franchise in a downturn are common sense business elements – a solid business plan, locating a banker of financial advisor that is experienced in franchise loans, and aligning yourself with a successful franchisor based on your own personal and business background .

Speak to a trusted credible and experienced Canadian business financing advisor on how you to can finance a business purchase in challenging times.

Business Franchise Loan The Before And After Of Franchising Finance In Canada

Posted on January 17, 2018 by blogger

Business franchise loan challenges. When it comes to financing a franchise in Canada there’s some critical ‘ before and after ‘ issues that need to be address. When they aren’t addressed properly the situations becomes… shall we say ‘ gut wrenching’! We’ll examine some of those key points. Let’s dig in!

Your initial decision to purchase a franchise should always be tempered with the amount of funds that you can personally invest in the business. These day’s those funds come from savings, equity lines of credit, and in some cases corporate severances.

Knowing the amount that you can comfortably commit to the business will play a key role in both the size of franchise you buy, as well as the financing you can arrange in this somewhat specialized field. Frankly, in Canada franchise funding comes from the smallest handful of resources – a specialized franchise finance firm, a bank loan, and some ancillary financing services such as equipment finance, leasehold finance, and merchant advances when it comes to working capital needs.

We reference banks, but by far the amount of financing that the Canadian banks deliver is through a vehicle known as the BIL/CSBF loan program. It’s the government program that over time has become the de facto vehicle to finance many of the franchises in Canada. Challenge arise when you are purchasing a service franchise as the BIL program is tailored more specifically to assets and leaseholds and real estate on some occasions.

Can the size and quality of the franchisor you are working with affect your business franchise financing success? To a certain degree the jury is always out on that one – suffice to say that some franchises are viewed as a bit more risk or somewhat more or less successful than others .

Also, as a point, when a franchising loan is under consideration in Canada it in fact does not make a real difference if your franchisor is Canadian, U.S. based, or in some cases you might simply be working with a Master Franchisee who has purchased the rights to your overall territory.

Your business plan and cash flow document are critical to finance success. In fact while the business plan is needed before you start your franchising process it can become a key valuable document in benchmarking your success down the road as compared to your original aspirations /projections.

Personal finances are a key part of the overall franchise finance process. You will need good reasonable credit history for your borrowing , and you will want to ensure that in your financial due diligence you assess the fact that your business will generate cash flow and profits that will allow you to draw a decent income based upon your needs .

When it comes to the franchising loan you want to ensure that your finance package addresses both the needs of the lender (i.e. repayment of your loan) as well as your ongoing working capital needs. Financial projections we see from clients are often not realistic, which can create some serious ‘ start up ‘ problems when it comes to financing on going operations.

At the end of the day the whole business franchise loan process requires both a ‘ before and after ‘ approach. Careful planning and utilizing guidance from your franchisors experience will get you to the goal line.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with franchising finance needs in the Canadian marketplace.

Small Business Vs. Franchising Part 1- Which Do You Want

Posted on January 11, 2018 by blogger

Franchises: Finding the Perfect Fit
Every franchise is an opportunity but every franchise is not the right opportunity for you. A successful franchise has to be the perfect fit. The business has to suit its owners. When potential investors discover a few basic facts about franchises, they can find the most suitable business for them.
Finding the Best Franchise: 5 Fool-Proof Tips
1. Getting Acquainted
Potential investors must spend time with the franchisor. Have several conversations with the franchisor. This person knows the business (its methodologies and processes) and the franchisor has developed a winning business model. The industry knowledge, expertise, and support of a franchiser helps every business get off to the right start.
Yet getting acquainted is a two-way street. The franchisor must also gain an understanding of the investor. The franchisor needs to be aware of the franchisees position and skills.
2. Ask Questions
Ask questions about the business. An experienced entrepreneur can ask informed questions but never let lack of experience keep you from asking anything and everything about the venture. The franchisor did not know everything about the business at the beginning.
Franchisors welcome inquiries. They want every business to be a booming enterprise. Do not forget to ask the most important question. Am I suited for this business? With their expertise, as well as their knowledgeable observations about investors suitability, they can give a direct answer to that question.
3. Inquire About Success
Ask about the successful franchises. Inquire about the top five businesses. Discovering the reasons behind their success can point other franchisees in the right direction. Potential owners should look at themselves and their circumstances in a realistic manner. Think about the characteristics and mindset, as well as the effort and determination, needed to run a thriving franchise.
4. Inquire About Failure
It is important to know about failed businesses as well as successful ventures. While franchisees can emulate successful businesses, they can avoid the pitfalls of failed enterprises. Potential owners gain power from knowledge. New investors need the facts; what is holding the failed franchises back from experiencing business success?
5. Get Feedback
Look for honest feedback from family, friends, and former colleagues. This trusted group can give you objective input about your strengths and weaknesses. Franchisees have to be strong in some areas but they do not have to excel in every business skill.
Willingness to put in effort and determination to deal with any challenge is a perquisite for every franchisee. While certain skills can be critical to business success, other jobs can be hired out to professionals. If you lack bookkeeping skills, do not give up on your franchise dream. Hire a bookkeeper.
Know yourself! Introverts will not thrive in a people business. If a franchisee fears dogs, they should not try to groom their way to success. The bottom line and the success of your business revolves around finding the best franchise for you. Find your franchise – the perfect fit for you!