As the economy begins to rebound, now is the perfect time for interested entrepreneurs to explore the world of franchising.
Philippine Franchise Association (PFA) president Chris Lim said there is a lot of pent-up demand when it comes to finding opportunities for business.
Franchising, according to Lim, can be a great option for those looking to get their feet wet in the world of business ownership.
“Before there were some people who were fearful (to get into business because of the pandemic), but we have seen them opening up,” said Lim on the sidelines of Franchise Negosyo Para Sa Cebu franchise expo at the SM Seaside City Cebu.
READ MORE: PFA Holds Franchise Expo in SM Seaside
Over 80 brands have participated in this year’s Cebu expo, bigger from the previous years and said to be the first face-to-face franchise expo since the COVID lockdowns. The expo will be running from July 28 to 30, 2022.
Over 80 brands have participated in this year’s Cebu expo | Photo by: Maria Jeandie Galolo
Lim, who is also president of Francorp Philippines – the franchise developer behind franchise mega brands like Jollibee, Potato Corner, TGP, and many more, believes that franchising is a good avenue to invest because investors won’t have to start from scratch. With franchising, they are simply replicating a successful business model.
This is certainly good news for those looking to get into the franchising business.
For many would-be entrepreneurs, the biggest hurdle is knowing where to start. Franchising, according to Lim, can be a great option for those looking to get their feet wet in the world of business ownership. With franchising, investors don’t have to start from scratch – they can replicate a successful business model that’s already been proven to work.
This gives them a lower risk and a higher chance of success. Plus, they can benefit from the experience and expertise of the franchisor.
How to know if franchising is for you?
While starting a franchise can be a great way to get your business off the ground quickly and with relatively little risk, not everyone is suited to franchising.
If you’re thinking about franchising, Lim recommends that you ask yourself these three questions first:
Do you have enough capital?
Franchises typically require a minimum investment of at least P100,000. If you don’t have that kind of money to invest, franchising might not be for you.
Do you have a sense of customer service?
Franchises are all about providing a consistently high level of customer service, after all, the success of a franchise depends on repeat business from satisfied customers.
Can you follow systems?
A key part of being a successful franchisee is following the systems and procedures that have been proven to work. For instance, franchises have specific systems in place for things like marketing and operations, and it’s important that you’re able to follow those systems closely. If you’re the type of person who likes to do things your own way, franchising might not be a good fit.
However, if you can meet all of these three basic requirements, franchising may be a good option.
Meanwhile, for business owners who want to franchise their own business, Lim advised that the business must already be profitable, teachable, and transferable.
PFA is organizing on Friday, July 29, a ‘How to Franchise Your Business’ seminar at the Max’s Restaurant in Banilad Town Center in Cebu City.
“To the businessowners, don’t look at just scaling nationwide but also scaling internationally. Let’s have more Filipino franchise brands abroad,” said Lim.
Cebu brands that have participated in the franchise expo include Animal Wellness, Blue Egg (Sinangag Station), Chicky’Oink, Chris Pharmacy, Coolers Delight, Julie’s Bakeshop, Mr. Potato, New York Buffalo Brads, The Lemon Co., and Wingers Unlimited Flavored Wings.
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