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Franchising Trend In The Philippines

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A popular business trend in the Philippines today is franchising. And the reason why it gained a lot of popularity is when a number of franchising companies had introduced a new form of franchise business, which is the popular food-cart or food-stall business.

Franchising Trend in the Philippines

History

Franchising business Philippines had only gained a lot of popularity and recognition a few years ago, this unique business process was already practiced in the past, mostly by large companies and corporations as well as wealthy companies.

The reason why the business wasnt as popular or as widely recognized all over the Philippines is because of the kinds of businesses available for franchising in the most. According to many business experts, most franchise businesses in the past are large establishments such as fast-food restaurants, convenient stores, bakeries, grocery stores, and many more.

Eventually, new forms of franchise business were introduced in the country, and part of what made these franchise businesses popular is because of its affordability. This is when food-cart or food-stall businesses were introduced in the Philippine market.

Franchising of Today
Because of the introduction of new franchising concepts, which is not only simple but also affordable, many Filipinos were able to get the same opportunity that many wealthier Filipinos have had with franchising, such as the opportunity of starting a business based on an already established brand name, allowing its owners (or franchisees) to gain more income compared to start-up businesses.

Because of its affordability compared to other forms of franchise businesses in the past, food-cart franchise business Philippines quickly became popular in the market. And because of the growing competition between different food-cart businesses, its costs had continuously dropped in which many of todays popular franchise businesses can now be acquired for less than P30,000 Pesos.

Eventually, food-cart franchise business Philippines have quickly spread all over the Philippines, not only in Metro Manila but also in many provinces as well as in the rest of the country.

Contribution of Franchise Businesses for the Economic Growth of the Philippines
Because of the continuous growth of franchising in the Philippines, the industry had created thousands of enterprises which generated hundreds of thousands of jobs, making franchising an important tool in the countrys economic growth.

The Advantages And Disadvantages Of Franchising

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Putting up our very own company or business requires so much time and effort. Building your own company from scratch is hard; so many people go for franchising instead. Franchising a business has its own benefits and drawbacks.

Benefits of a Franchise

Less Start-Up Problem.
A franchise is defined to be a turn-key business. When you franchise a business, the owner will be responsible for all of your marketing strategies and logo. Your products and suppliers are already defined, with pricing already in place. Franchises normally have a software package for product sales and data processing.

Training and Support.
Most franchises require you to fly to their corporate headquarters for a few weeks of training on all aspects of the company. Youll learn about everything from product preparation to bookkeeping practices. If youre a novice to the business world or lack a business record, a franchise is actually a good fit.

Brand recognition.
Whenever you join a franchise, youre registering with a business that is already firmly established in the market. Youll reduce costs time and expense convincing customers that your product is great-they undoubtedly recognize the brand.

Fast Turnaround.
If youre chomping at the bit to start your brand-new store, a franchise could be the solution. Because franchises offer you all the tools you may need for your organization, you can open far more quickly than if you had to figure it all out on your own.

Disadvantages of a Franchise

Numerous rules.
Firms that offer franchises set up typical practices for their business, and they expect you to closely follow a strict set of guidelines. If you dont like the thought of somebody else dictating the way your company runs, a franchise is not for you.

Price.
Fees vary extensively, but you should intend on investing in the brand recognition and groundwork that youre getting when you buy into a franchise. Most franchises call for an initial start-up fee. Soon after, youll assume responsibility to pay the franchise a percentage of your sales. If youre ready to pay fees and royalties for the convenience, a franchise is a great move. However, if you wish to start your business on a shoestring, franchises arent for you.

The franchise determines the culture.
Each and every business has a certain personality-and a particular set of company ideals. Before signing on with a franchise, be sure that your values and personality get in line with the companys-otherwise you may find yourself feeling stifled or upset.

Their very own status is your standing.
This can work either way. You will get brand recognition with a franchise, but this can actually turn towards you if the business makes national statements for shady business procedures. Even when you might not be directly involved, their brand is on your own door.

Franchising Business Commercial Franchise Lawyers

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Franchising Business Commercial Franchise Lawyers – We have all heard of the term, and most of us know people involved in it. After all, it now contributes more than 10 billion to the UK economy, across numerous business sectors. But what is it really all about, and how are some businesses so successful at it, whilst for others it brings disaster?
The concept is fairly simple. In a franchise, an established business (the franchisor) grants someone (the franchisee) the right to trade under the franchisors trade mark or trade name.
Most franchising is actually business format franchising. This means that the franchisor develops a business concept, including a trade name and operating methods, and they train the franchisee in how to run their business using this concept. The franchisee operates his/her own business under the franchisors name and under some fairly tight controls and guidance. These are set out in a franchise agreement, and usually an operations manual as well.
At heart, a franchise agreement is essentially a trade mark licence, with a number of operational instructions and controls placed on the franchisee.
In many cases, the franchisee is given an exclusive territory in which to operate during the term of the franchise agreement.
For franchisors, franchising can therefore be an exceptionally quick route to business growth, with low overheads and low risk. We will look at this in more detail later on in this article. For franchisees, franchising can provide an attractive opportunity to own and operate their own business, but one which has a proven business concept and which provides training and support. Franchising can in some cases also provide a very rare opportunity for genuine work/life balance.
Sadly however, as with everything in life, it is not always that simple. Although survival rates for franchisee businesses are much higher than for other business start-ups, franchisees all too often fail. Some lose substantial amounts of money, often through no fault of their own. Below are some of the perils to avoid:
Peril No. 1 – Not doing enough homework before handing over your cash
Most franchisors can talk a good talk. It is their job to convince you that their franchise offering will bring you wealth and success. However, whilst many franchisors are scrupulously honest and professional in their dealings with prospective franchisees, some of them are unfortunately not.
Remember when you take on a franchise this is a business to business agreement. There is no consumer law to protect you, so your legal remedies may be very limited. It is your responsibility to check out what you are being told, and never to take promises and forecasts on face value.
It pays to remember the age-old saying: If it sounds too good to be true, it probably is!
Membership of the British Franchise Association – requiring the signing of a charter for ethical franchising – is a good indicator of an opportunity worthy of consideration, although there is no substitute for properly checking out and researching a franchise.
Peril No. 2 Taking on a franchise which does not play to your personal strengths
You need to think long and hard about whether taking on a franchise will suit your personality and skills. You may imagine, for example, during a frustrating day at the office, that nothing would be lovelier than leaving the rat-race and running your own cafe. But beware of the grass is greener over the fence philosophy. No matter what franchise you take on, it is likely to involve hard work, and this will never be satisfying unless it is something that you are passionate about.

Unique At Home Franchises

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Have you ever considered running a business from your home, but maybe wanted something a little more solid with a long standing reputation behind it? There are many franchises that offer just that- your own business, from your home, with very little overhead and quite alot of freedom to be the success you know that you can be. Here, we will explore just a handful of the frontrunners in the at home franchise world.

Mars Venus Coaching
Yes, you know the name. Made popular by the books by John Gray, this franchise is a hot one to follow. In this franchise you are given a wide range of products that are not available to the general public to give your at home relationship coaching business a boost. Relationship coaching is a fast growing industry and one that is a vital and needed service, so this is definitely worth your time to check out.

Beautiful Vending
The personal care and salon industry is booming now more than ever. You can cash in on this trend and run your own vending service, selling a proven product that is known world wide. This unique concept allows women to style there hair in restrooms anywhere they are, so it is certainly a winning idea for those who prefer a more laid back way of doing things.

Filtafry
A frontrunner in the environmentally friendly franchises, Filtafry also became a leader in at home franchising with its low start up, high level of support and the best part is, you can keep all of your equipment in a very small space. Filtafry has such acclaim and long term reputation for excellence and is certainly a stable choice for anyone looking to open a business dealing with the hospitality industry and more.

The Back Rubber
Another unique idea that is growing in popularity is the Back Rubber. Massage chairs are a relaxing and quick break for anyone out on the go- certainly many men can attest to finding relief from a long day at the mall in one of these. Best of all, the Back Rubber offers not only support, but a locater service to help you succeed in running your very own massage chair station.

Housewarmers
With wonderful support and an easy to follow, proven business system, Housewarmers is not only a great franchise to buy, but a fun, flexible way to enjoy your at home career. This valuable service welcomes newcomers to your neck of the woods while at the same time, enabling them to find the goods and services they might need, connecting them with advertisers of your choosing.

There are a wealth of at home franchises that can certainly not only suit your lifestyle, but your budget as well. Very low start ups, unique ideas and great support make these companies a great idea for anyone who would like to run their own business, with a level of support that you just can’t find in other at home independent options. Check around and for whatever interests you, you are sure to find the at home franchising options that suits your needs, your budget and your ideas for how you’d like to build your own career.

Why Business Franchising Is A More Popular Investment Choice For Banks

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Critical to starting a business is having the appropriate finance in place, and money alone is the number one reason most as much as 90% – of business ventures fail during the early start-up period. While management failure does also play a part, it is money that makes any business worthwhile and gets it off the ground. At the same time, business franchising is a popular way of starting a business and becoming your own boss, and for a variety of reasons business franchising start-ups tend to be viewed more favourably by banks and investors. There are numerous key business reasons for this bias.

Firstly and most importantly of all, business franchising is a proven and tested business model. By virtue of being a business franchise, any opportunity of this nature requiring money has already been proven to work in another geographical area. Someone else has already demonstrated that the business model has the ability to work and generate revenues, and as such it has been franchised out to other business people. As such, banks tend to consider the business model less of a risk, allowing them to base their decisions on the faith they have in the individual in front of them rather than the specific intricacies of the business model.

Secondly business franchising is given more priority in funding because there is support available from the parties that have already made a success of the business. Because help is on hand and usually some form of training is provided, theres no trial and error with a franchise. The franchisees know exactly what to do and how to do when it comes to making a success of the business, which translates into a lower risk proposition and makes them instantly more creditworthy. The only consideration running through a bank managers mind is whether or not the business will be able to repay the loan they are offering, and with a business franchising opportunity and the support inherent in that, they find their answer more readily.

Another key reason business franchising received funding preference from banks and other lending institutions is that there is already a degree of goodwill associated with the franchise name. This means that the business franchising opportunity will benefit from the branding and marketing previously invested in by the franchisor, which will give the new business a lift when it opens. Simply because a business has a recognisable identity and has previous goodwill, it is less of a risk and less likely to struggle to find those all important initial paying customers and lenient suppliers.

Business franchising as a business model makes sense, and everybody on all sides of the table are kept happy. For the banks and money lenders, business franchising provides a much lower risk way of investing in businesses, and a much more guaranteed way of earning money on the finance offered. As such, banks are much more willing to invest in franchising opportunities than in other business ventures, making it far easier to raise the necessary capital to start up and survive the initial few years.

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