26 Best Franchise Business Opportunities in the Philippines (2024)

In the Philippines, there are two main types of franchising:

1. Business Format Franchise

This is the most common type – where the franchisor gives the rights to things like trademarks, trade names, business processes, as well as the system order, which allows the franchisee to operate the business for a fee.

The franchisors provide a detailed plan, procedures, and guidelines concerning almost every aspect of the business. They also provide initial and ongoing training and support, which is essential to the success of a franchisee.

As you well know, some of the biggest brands in the world offer this type of franchising, with Jollibee, 7-Eleven, and Starbucks among the more popular ones in the Philippines.

2. Product Distribution Franchise

This type of franchising is very similar to the relationship of a supplier and distributor. Simply put, the franchisor is responsible for providing the product, which the distributor is then authorized to sell.

A notable difference between product distribution and business format is that in the former, the franchisor is only responsible for the product, whereas in the latter, there is also training, support, and access to business processes included in the agreement.

But because of the absence of those things, the franchisee has more liberty in terms of how to run the business.

It’s important to note, though, that while franchisees may enjoy more freedom, they still need to adhere to guidelines such as selling the products on either an exclusive or semi-exclusive basis.

In exchange for these rights, franchisees pay a fee to the trademarks of the products they will be selling.

This type is often used for larger products like vehicles and heavy equipment.

Is franchising the right type of business for you? Or are you better off starting a business from scratch and running it on your own?

While it offers plenty of benefits, a franchise business also carries some risks. Weigh carefully the pros and cons of franchising before you decide whether to go for it or not.

Franchising Advantages

1. Recognized and established brand

When you buy a franchise, you have the right to use the franchisor’s trade name and trademark or company logo.

This gives you access to the well-known brand’s customer base, so attracting and finding your first customers won’t be that difficult.

2. Tried-and-tested business model

The business operating systems of franchising brands have been tested in various markets in the Philippines and have already been proven to be effective.

The policies, procedures, and control systems for running the business are laid out in the operating manual—all you have to do is to follow it.

Thus, franchising suits you if you have no background or experience in business management.

3. Easier to get a great location

Having the backing of a large corporation or popular brand makes it easy to get a lease for your franchise business site.

If your target site is a mall, you can easily get approved for a lease because the established franchise brand can draw in more customers.

If you’re planning to start a food cart or kiosk business, location won’t be much of an issue because franchisors typically require just a small space of at least 4 square meters.

4. Training support

Starting a franchise business is a great way to learn how a successful company operates.

Franchisors provide training to help franchisees understand their business model and learn the day-to-day operations, customer service, and use of trade secrets such as proprietary recipes for food franchises.

Franchise packages may also include employee screening and training.

5. Pre-opening assistance

Franchisors help in the pre-opening needs of their franchisees such as site design, evaluation, and construction. Some franchise packages also include assistance for the grand opening.

6. Marketing support

Franchise brands in the Philippines have solid marketing and advertising campaigns in place, and their effects trickle down on their franchisees.

For example, if you get a shawarma food cart franchise, the package might include marketing materials such as a standee of a famous celebrity endorser like Daniel Padilla or Piolo Pascual. You won’t get such a crowd-drawer when you start a similar business on your own.

7. Continuous research and development

No need to worry about spending time and money for product development and innovation because the franchisor will take care of that. You can just focus on operations instead.

8. Faster ROI

Compared to starting your own business, you can expect a quicker return on investment with a franchise business.

The access to an established brand name, customer base, operating system, and all sorts of opening support cuts down the time it takes to recover your investment.

9. Higher chances of success

Running a franchise business has a success rate of 90%, based on a study by the United States Agency for International Development (USAID).

This fact is hardly surprising because all the franchising pros listed above contribute to raising the chances of success.

Franchising Disadvantages

1. Expensive startup costs

The capital needed to start a franchise business is its biggest drawback. Usually, the initial investment is twice as (or even higher) that for opening a business from scratch.

The following are the typical startup expenses when starting a franchise business.

• Franchise fee – This one-time, upfront fee is what you pay to gain the license to use the franchise brand’s proprietary information legally, such as its trademark, logo, and trade secrets. The more popular the brand is, the higher this fee is charged.
• Royalty fees – The royalty payments for franchise businesses in the Philippines typically range from 3% to 10% of the monthly gross sales. It’s paid every month, so this can reduce your net income. Not all franchisors charge this fee, though.
• Advertisem*nt and marketing fees – These are a small percentage of the gross monthly sales, which are used to fund the franchisor’s marketing support.
• Cost of supplies – Although some franchisors provide the initial supplies as part of the franchise package, franchisees have to keep buying the next batches either directly from the franchisor or its accredited suppliers. This can cost you higher compared to sourcing your own suppliers.

2. Limited flexibility and autonomy

Franchising doesn’t offer much to franchisees in terms of creativity and innovation. You’re bound to follow the rules in the operating manual and franchise agreement.

When you want to do something differently, like switching to a cheaper and more accessible supplier, you’ll have to seek the franchisor’s approval first. If the company doesn’t agree to it, you have no choice but to comply.

3. Lock-in period

Franchise contract terms range from two to five years or longer. Within that period, you’ll be stuck with the company regardless if it’s performing well financially or not.

Renewing the contract depends on the franchisor’s evaluation of your business relationship and your franchise business’ performance throughout the contract term.

4. Business risk

Just like any kind of business, franchising is also a risky venture. Your success will depend on the franchisor’s success. If the company fails, the reputation and performance of its franchisees will suffer as well.

Filipinos love grilled food. Grilling is also a cheaper way of cooking, so this is certainly a business for people with a limited budget.

One of the common takeout businesses seen in the Philippines is the “Turo-turo,” where you sell seafood, pork, beef, and chicken skewers. You may also choose a franchise model that does not follow the “turo-turo” style.

Another very lucrative food business is bakery and pastry shops. This business is very popular among Filipinos because we simply love eating sweet things.

Since Filipinos love eating sweet baked treats, you can almost set up a bakery anywhere you go. You can sell panaderia favorites such as pan de sal, pan de coco, ensaymada, and spanish bread.

Meat is a staple food in the Philippines. Considering this, having a meat shop is a great business. You can sell beef, pork, and chicken in the meat shop.

You can also sell sausages, hotdogs, and other processed meat. If you want to expand, you may even offer imported cold cuts and cheeses.

Fast food is ingrained in Filipino culture. This is why there are tons of fast food franchises in the Philippines such as McDonald’s, Jollibee, Chowking, Greenwich, and Mang Inasal.

Having a restaurant business is considered to be the most practical business franchise to operate and it is definitely one of the most profitable franchises in the country.

Two franchise businesses Filipinos love include the spa and salon. Filipinos are known to pamper and spoil themselves. If you have a spa or salon, you can surely make a lot of money.

You may offer haircuts, hair color, hair treatments, as well as body scrubs, massages, waxing, and many more.

The perfume industry in the Philippines isn’t immensely saturated yet so this is a great opportunity for you. You can sell colognes, oil-based perfumes, solid perfumes, and other types of fragrances. One popular perfume chain in the country is Aficionado.

The Philippines is one of the biggest consumers of beauty products in the world. For example, social media (especially TikTok) is filled with beauty content.

You may franchise a company that offers cosmetics products such as makeup, skincare, and nail care. Just make sure the company has a great USP. For example, it must be cruelty-free, or vegan.

These qualities are important since many Filipinos, especially the youth, are becoming more conscious of the brands they buy.

More people are shifting from old furniture to new and trendy ones. For this franchise business, you may offer portable tables, chairs, and other furniture.

Cleaning services thrive in the Philippines, especially after COVID-19 hit the country. For this business, you may offer residential and commercial cleaning, as well as carpet and furniture deep-cleaning.

Everybody needs to wash their clothes, but not everyone has the time to do it. For this franchise business, you may offer drop off, pick up, and delivery.

Filipinos are quite thrifty and would prefer to restore old and broken shoes instead of buying new ones.

This is why this type of business is one of the most promising franchises in the Philippines right now. If you set up your shoe repair store in malls, it can bring you big bucks.

The Philippines has a large remittance sector, especially when it comes to money sent back by OFWs all around the world.

With that said, there are a lot of opportunities to open a remittance shop anywhere in the country, even in far-flung areas. And if you give your customers an additional service in the form of bill payments, this can become a very profitable business.

This is one of the most popular businesses you can offer in the Philippines because a lot of Filipinos love sports. You may open a sports academy for running, boxing, swimming, and martial arts. The key is to offer both group and personal training sessions.

Daycare centers and kids care centers are good businesses especially if you have the right resources to do this. You may cater to kids of different ages, and also offer services to children with special needs.

Training centers, particularly those that offer medical and technical training, are very much in demand.

This can be a very effective business, especially if you offer opportunities for internships (abroad or local). Some cooking school programs that are popular in the country include baking, pizza making, healthy cooking, vegan cooking, and many more.

Franchise businesses in the tutorial services sector offer a proven business model and established brand recognition, which can significantly reduce the risks associated with starting a new venture.

Additionally, these franchises often provide comprehensive support and resources, including training and marketing strategies, enabling franchisees to focus on delivering quality educational services.

A lot of young people are choosing this mode of transportation so entrepreneurs like you can open a business catering to this industry.

You may sell bikes, e-bikes, and motorcycles, and you may also offer services such as repair, quality control inspection, and other motor replacement services.

The Philippines has a very competitive mobile phone market so there is a lot of opportunity to create a business for prepaid load, and even RFID.

Ink refilling stations are a very profitable business opportunity in the Philippines, especially if you cater to huge corporations and businesses.

The business can thrive due to the increase in the number of internet users, especially near schools.

Internet connection is also very affordable in the Philippines so this is a low-cost franchise business. You just have to charge customers according to time.

Printing is also another lucrative franchise opportunity in the Philippines. You may offer printing for tarpaulins, t-shirts, brochures, and flyers, among others.

This is one of the easiest businesses in the Philippines. You may offer office supplies such as ID cards, business cards, personalized pens and stationery, toners, and printers, among many others.

The Philippine travel and tourism industry is very much in demand now that COVID-19 is not a major concern anymore.

With a lot of tourists coming to the country, you can franchise a successful travel agency that offers tour packages. You may also cater to Filipinos who want to travel abroad.

Jewelry is also one of the most popular products you can sell in the Philippines. The market is big, and you may also offer services such as jewelry cleaning.

1. Head over to http://www.jollibee.com.ph/investors.
2. Download and fill out the application form.
3. Send a letter of intent to Jollibee, including your proposal address and contact details.
4. Send a location of the map of your proposed store site.
5. Show a legal document that proves that site is under your name.
6. Send your detailed resume to Jollibee.
7. Wait for your application to be processed. This usually takes 3-4 months.

Contact details:

• Jollibee Foods Corporation, Franchising & Events Department, 9th Floor Jollibee Plaza, #10 F. Ortigas Jr. Road, Ortigas Center, Pasig City 1605
• https://www.jollibee.com.ph/Philippines/
• (632) 8634-1111 (telephone)
• (632) 8633-9504 (fax)

1. Submit a letter of intent with a comprehensive resume to franchising@ph.mcd.com.
2. Undergo the interview process.

Contact details:

• 17th Floor Citibank Center Bldg., 8741 Paseo de Roxas St., Makati City, Philippines
• 888-500 loc. 5000

1. Contact 7-11 Philippines head office.
2. Prepare your site and go through a three-level interview process.
3. Sign the documents.
4. Attend a one-month training.

Contact details:

• 7-11, 7/F Columbia Tower, Ortigas Avenue, Mandaluyong City
• 726-9968
• franchising@7-eleven.com.ph

1. Visit the Shell Philippines website to download the application form.
2. Email your application form to newbusiness-ph@shell.com, with your details and proposed location.
3. Be ready to answer the application form questions.

Contact details:

• (02) 8789-3516
• newbusiness-ph@shell.com
• http://shell.com.ph/joinshelltoday

1. Submit a letter of intent with your details, lot plan, vicinity map, and Transfer Certificate of Title.
2. If approved, undergo a 4-week dealer management course

Contact details:

• (02) 884-9251
• Talk2Us@petron.com

For Luzon Applicants

• Fax: (02) 884-0950 or (02) 884-0940
• Tel. No.: #PETRON (#738766)
• Ground Floor, San Miguel Corp. (SMC) Head Office Complex, 40 San Miguel Avenue, Mandaluyong City

For Visayas and Mindanao:

• Petron Corp. Mandaue Terminal, Looc, Mandaue City
• Fax: (032) 345-5616
• Tel. No.: #PETRON (#738766)

1. Fill out the application form.
2. Submit a letter of intent, a vicinity map of the site, and photos of the site.
3. Submit the application here.

Contact details:

• 60 Cordillera Street, corner E. Rodriguez Sr. Avenue, Brgy. Doña Josefa, 1113, Quezon City
• +63.2.8330.2889 (Nationwide)
• +63.939.101.0101 (Luzon)
• +63.947.101 (Visayas and Mindanao)

1. Submit a letter of intent.
2. and application form with 1 valid ID.
3. Fill out your marketing study.
4. Submit a location offer sheet.

Contact details:

Luzon

• 869 Katarungan Street, Barangay Plainview, Mandaluyong City
• (02) 531-9891 loc. 112

Visayas: Bacolod

• 36 Block 6, Barangay Montevista, Bacolod City
• (034) 435-0712; (034) 707-9691

Visayas: Cebu

• Master Franchisee: Porfin Trading Corporation 386-C Tres Borces Extension, Mabolo, Cebu City
• (032) 231-6040

Mindanao

• 505 Ayala Compound, Aguho Street, Juna Subdivision, Davao City
• (082) 285-7355

1. Fill out the initial questionnaire form here.
2. Go through an interview process.
3. Submit your proposed location.

Contact details:

• 52 West Capitol Drive, Bo. Kapitolyo Pasig City, Philippines
• 0918 – 8889248 (SMART)
• 0917- 8098043 (GLOBE)
• 0923-4563586 (SUN)

1. Download the application form here.
2. Look for a location.
3. Schedule a site evaluation with Master Siomai.
4. Hire your crew, and select the ones who will attend the orientation and training.
5. Sign the agreement.
6. Wait for your food cart to be delivered.

Contact details:

• inquiry@mastersiomai.ph
• (02) 8-281-3635
• (02) 8-709-5288
• (02) 8-709-0901
• 09234419958

1. Apply here.
2. Wait for a salesperson to contact you.
3. If approved, start your training.

Contact details:

• 02 888-1200 (Metro Manila)
• 1-800-1-888-1200 (toll-free nationwide for PLDT Lines)
• 1-800-9-888-1200 (toll-free nationwide for Globe Lines)
• +632 888-1200 (Overseas)

1. Submit a letter of intent with your location map, and photos for the site.
2. Wait for PCSO’s approval. Then, start the construction of your lotto booth.
3. Sign the contract.

Contact details:

• ncr_odmpcso@yahoo.com
• PCSO Main Office, PICC Secretariat Bldg, CCP Complex, 1307 Roxas Blvd., Pasay City

1. Submit your application to Dunkin Donuts, together with your proposed location, photos, and vicinity map.
2. Submit a letter of intent and your contact details.

Contact details:

• Reliance Corner Sheridan Streets, Mandaluyong City, Metro Manila, Philippines
• http://www.dunkindonuts.ph/
• +63(2)9887288

• Contact Bayad Center directly.

Contact details:

• inquiry@cis.com.ph
• msroa@cis.com.ph
• riramos@cis.com.ph
• CIS Bayad Center Inc., Business Solutions Center Meralco Complex, Ortigas Avenue, Pasig City, Philippines
• 1622-6015

1. Submit a letter of intent to a Toyota distributor.
2. Propose your terms of the agreement.

Contact details:

• Toyota Special Economic Zone, Santa Rosa-Tagaytay Highway, Sta Rosa City, Laguna 402
• 31/F GT Tower International, 6813 Ayala Ave.,Salcedo Village
• (02) 8819-2912
• customerassistance@toyota.com.ph

1. Submit a letter of intent addressed to Shakey’s Franchising Department.
2. Submit an application form.
3. Undergo the screening, validation, and review processes.

Contact details:

• franchising@shakeys.biz

• Contact Bench directly.

Contact details:

• 777-7888
• franchise@benchtm.com
• Bench Tower 30 Street, Corner Rizal Drive, Crescent Park West 5, Bonifacio Global City, Taguig City

1. Attend the MB101 and MB102.
2. Submit a letter of intent, as well as an application form.
3. Go through a series of interviews.

Contact details:

• 02776-7740
• info@minuteburger.com
• 4 Dama de Noche St. UPS 4, Paranaque City, Philippines

1. Submit your letter of intent and location map of the proposed site.
2. Wait for your site to be validated within 3 weeks.
3. Undergo the screening process.
4. Wait for the approval.

Contact details:

• franchising@tokyotokyo.ph

1. Submit a letter of intent, with your proposed site location, area development plan, and site map.
2. Wait for the application form to be issued by Yellow Cab.
3. Go through an interview process.

Contact details:

• 784-9000
• franchise@maxsgroupinc.com
• 11/F Ecoplaza Building,2305 Chino Roces Ave. Ext., Makati City

1. Submit a letter of intent, with your proposed site location, area development plan, and site map.
2. Wait for the application form to be issued by Max’s.
3. Go through an interview process.

Contact details:

• 02784-9000
• info@maxsgroupinc.com
• 11th Floor EcoPlaza Building, 2305 Chino Roces Avenue Extension, Makati City 1231 Metro Manila, Philippines

• Contact Tong Yang directly.

Contact details:

• 373-8621/23
• 1498 Quezon Avenue, Quezon City

1. Fill out the ML Express inquiry form.
2. Remit the investment.
3. Renovate your location.

Contact details:

• mlx.luzon@mlhuillier.com (Luzon)
• mlx.vismin@mlhuillier.com (Visayas)
• 0947-999-9353 (Smart – Luzon)
• 0917-800-3056 (Globe – Luzon)
• (02) 712-3449 (Landline/Fax – Luzon)
• 0947-999-9352 (Smart – Visayas)
• 0917-821-5045 / 0917-811-6304 (Globe – Visayas)
• (032) 416-3957 (Landline/Fax – Visayas)

• Contact SM Investments directly.

Contact details:

• https://www.sminvestments.com/contact-us
• (02) 857-0100
• 10th Floor, One E-Com Center Harbor Drive, Mall of Asia Complex Pasay City 1300, Philippines

• Contact Baliwag Lechon Manok directly.

Contact details:

• inquiry@baliwaglechonmanok.com
• (02)654-2929, (02)654-9001, (02)654-9002
• Head Office, # 1 Mercedes Avenue, Pasig City, Philippines

• Contact TNC on Gmail, and request a copy of their questionnaire.

Contact details:

• tncfranchising@gmail.com
• +63 (02) 7120089 | +63 (02) 7310179
• CVJ Bldg, 11 A Nicanor Roxas ST., La Loma, Quezon City, 1114 Metro Manila

1. Fill out the franchise form here, and submit your proposed location.
2. If approved, attend the training sessions.

Contact details:

• 02737-94274
• 4/F Unit 2C, One E-Com Building, Ocean Drive, Mall Of Asia Complex, Pasay City, 1300

A franchise directory is a tool that you can use to help you find the best franchises in your area. When using a franchise directory, you can narrow down your search by industry, budget, and other criteria.

Most directories are also equipped with other helpful filters to help you pick the ultimate business to serve your goals. Some directories you can check out include:

• Franchise Manila
• Franchise Market
• Philippine Franchise Association
• Top Franchise
• FRPH
• U Franchise
• Franchise Asia
• Pinoy Listing

Franchise expos are another great way to find franchise business opportunities in the Philippines. These expos bring together a variety of franchisors and potential franchisees in one location.

This allows you to speak with representatives and get a better understanding of the franchise business model, investment requirements, and the support and training that comes with the franchise.

In the Philippines, Franchise Asia or FAPHL is the biggest and longest-running annual franchise show. Here are the other franchise expos in the Asia Pacific region:

• Japan International Franchise Show
• International Franchise Expo Shanghai
• Vietnam International Retailtech & Franchise Show
• Philippine Franchise Association Events

Aside from franchise directories and expos, another avenue to explore for franchise business opportunities in the Philippines is franchise associations.

These associations provide a wealth of information and resources for entrepreneurs looking to invest in a franchise.

The Philippine Franchise Association (PFA) is the country’s voluntary self-regulating body for franchising. They offer various resources including a directory of franchises.

Some government agencies can also help you find a legitimate franchise business such as the Bureau of Trade Regulation and Consumer Protection, Bureau of Small and Medium Enterprise Development, Bureau of Domestic Trade, Philippine Trade Training Center, and Securities and Exchange Commission.

These professionals are experts in helping individuals buy and sell businesses, including franchises. They can help you find a franchise business opportunity that fits your goals and budget.

Business brokers have access to a wide range of franchise listings and can provide valuable advice and guidance throughout the buying process.

Franchise consultants are experienced professionals who assist potential franchisees in making informed decisions about franchise business opportunities.

They can provide expert guidance on franchise selection, investment requirements, and franchise agreements. Franchise consultants can also help you understand the risks and rewards of owning a franchise business.

More than that, they can help you assess your skills and resources, determine the best franchise business to invest in, and provide guidance throughout the process of buying and setting up your franchise.

There are banks in the Philippines that offer franchise opportunities to interested investors who need a loan. This can be a great option for individuals who are interested in having a business but do not have the capital to do so.

Blend PH

Blend PH is an online platform that connects borrowers who want to grow their wealth through investing. You can borrow P50,000 to P2 million, and choose a payment term of up to 36 months. Interest rate starts at 2%, and processing only takes one to three days.

Here are some of the franchise partners of Blend PH:

• 1740 Coffee Genesis
• Adobo Factory
• Tea Life
• The Siomai Republic
• Papa Pares
• Manny’s Grill
• Urbanitea

Know more about it here.

Robinson’s Bank Franchise Loan

Robinson’s Bank has partnered with businesses to make franchising easier for individuals. Take a look at its Potato Corner franchising options below:

• Giga outdoor package:
  • Price: P550,000
  • Franchise term: 5 years
  • Initial supplies: worth P5,000
  • Tenure: 12 months, 24 months, 36 months

• Tera package
  • Price: 325,000
  • Franchise term: 5 years
  • Initial supplies: P5,000
  • Tenure: 12 months, 24 months, 36 months

• Mega package
  • Price: P450,000
  • Franchise term: 5 years
  • Initial supplies: 5 years
  • Tenure: 12 months, 24 months, 36 months

Check out this page for more information.

Established franchising holding companies are another option for finding franchise business opportunities in the Philippines. These companies already have a portfolio of successful franchise brands, and they offer their franchises to interested investors.

Investing in an established franchising holding company can provide you with a proven business model and a recognizable brand name, which can help your franchise business succeed. Here are some franchising companies you should consider, including the brands they have:

Fruitas Holding, Inc.

This company’s goal is to make fresh and affordable products accessible to the masses. Most of their products are freshly made at their commissary to ensure their quality. Its list of brands includes the following:

• Fruitas
• Jamaican Pattie Shop and Juice Bar
• Buko by Fruitas
• Johnn Lemon
• Fruitas House of Desserts
• Buko Loco
• Black Pearl
• ·Juice Avenue
• Facie
• The Mango Farm
• Tea Rex
• Cindy’s Candy Cloud
• Shou La Mien
• Fruitas Ice Candy
• Uno Cinquenta
• Friends Fries
• Le Village
• Coco Delivery
• 7,107 Halo Halo Islands
• Munifico Pizzeria
• Babot’s Farm
• Soy & Bean
• Porto’s Peri Peri
• Babot’s Mart
• Empanada Mexicana
• Balai Pandesal

Max’s Group

Max’s Group is the largest casual dining restaurant company in the country. It started with Max’s Restaurant and welcomed other brands as its success grew. Its brands include:

• Max’s Restaurant
• Pancake House
• Krispy Kreme
• Jamba Juice
• Yellow Cab
• Teriyaki Boy
• Dencio’s
• Max’s Bakery
• Maple
• Kabisera
• All About Chicken
• Singkit
• Sizzlin’ Steak
• Coeur de France

Jollibee Group

This list would not be complete without Jollibee Group, which is responsible for the most popular fast food chain in the country. Jollibee Group also has other fast food chains in its roster that have amazing potential for returns. Here are the brands under this company:

• Jollibee
• Greenwich
• Coffee Bean and Tea Leaf
• Mang Inasal
• Smash Burger
• Hong Zhuang Yuan
• Yonghe King
• Burger King
• Highlands Cofee
• Panda Express
• Red Ribbon
• Rick Bayless Tortazo
• Chowking
• Tim HoWan
• Yoshinoya
• Milksha

Fab Suffrage, Inc.

Fab Suffrage, Inc. was established to help people build their businesses. It already has a proven business system in place that contributes to its high probability of success. Its food carts start at P99,000. Its list of brands includes:

• Star Frappe
• Gulaman Corner
• Heaven’s Burger
• Buko Fresh and Ice Scramble
• Chow Meals
• Pinoy Hot Balls and Fries
• Pizza Delite
• Dimsum Temple
• Sizzle Sisig
• Sip Fries
• Snacku House
• Rice Atbp.
• Cuisina Meals
• Food Treat

TCF Franchising

With single-cart franchise fees starting at P35,000, TCF Franchising is one of the best budget franchise providers in the country for those who want to start a food cart business without breaking the bank. Its list of brands includes:

• Lemon Co
• Amigo Mango
• Splash n’ Fries
• Siomai Fast Bites
• Waffle Craze
• Austine’s Frappe Delight
• Buko Freshco
• Taco Tuesdays
• Stan Wings and Bowls
• El Dinamita
• Greeks Shawarma Ave.
• Master Chef’s Takoyaki

Before you choose a franchise, you must first know your personal goals. This will help you narrow down your choices.

Will you be content with just a part-time business, or are you aiming for a brick-and-mortar franchise? Do a self-assessment and think about your strengths and weaknesses.

You must be honest with yourself if you will be able to handle the operations of the business. You may be a good salesperson, but will you be a good manager?

If you are a good manager, will you have time to do the actual work?

If you want to know if a franchise is a viable business opportunity for you, don’t rush into things. Take your time to weigh its pros and cons carefully.

We know it can be extremely exciting to set up your store immediately, but researching will ensure that you won’t end up wasting your time, effort, and money. To ensure you research well, do the following steps:

1. Join franchising events

You can visit almost any event that is hosted by franchising companies. There, you will meet entrepreneurs who can help you make the right decision.

You may also meet some franchisees who can give you valuable information on what you will experience once you become a franchisee.

2. Join franchising groups

Joining groups and interacting with other franchisees and current franchisers will give you more insights into the industry.

You may also get recommendations about the best franchises to invest in. Online groups and in-person clubs may also enable you to find valuable information on store locations, rent, and franchising requirements.

3. Read the fine print carefully

Compare companies not just based on cost but also the inclusions and requirements. Some franchising companies offer a more comprehensive training program than others.

For example, staff training and store equipment in particular are important factors because these will determine how well you can maximize your franchise’s potential.

The third step is to look at the type of business that matches your interest and strength. Are you good at management?

If so, you may focus on computer technology and retail. Are you good at customer service? Then you may go into restaurants or hotels, among others.

Before choosing a franchise business, take a look at your budget. If you can release a large capital, you may invest in a well-known chain such as Jollibee.

On the other hand, if you are a first-time entrepreneur, you may want to choose a low-cost franchise business.

Keep in mind that you don’t need to spend a lot of money to get a profitable business. There are now micro franchisees that you can invest in for as little as P100,000 to P500,000.

If your available capital isn’t enough to start your target franchise business, consider getting a bank loan to fill in the gap. Banks like BPI and Security Bank offerfranchise business loansto franchisees of their partner merchants.

Related: 10 Ways to Raise Funds for your Business Idea

With the information you have gathered, it is now time to create your shortlist. Pick around 10 to 15 franchises to start with.

Do not rush this process and allow your emotions to be in control. If you are too excited about your business and choose a franchise without evaluating the market, you may end up with a business that has a limited market share and low demand. Before deciding on a franchise, take a step back and let your head rule your heart.

From your shortlist, eliminate those businesses that don’t fit your criteria. Then narrow down your choices based on the price, your financial capacity, and your business skills.

After narrowing down your choices, it is time to crunch the numbers. Determine how much money you will need to start the business. This does not only include the franchise fee, but also your wages, rent, and other monthly expenses.

Then, try to assess how much time you must wait before getting your capital back.

If you don’t know how to do this yourself, seek professional help. After analyzing the figures, do you still want to proceed with the plan?

What if you do not see yourself earning enough to cover your monthly expenses? Then it’s time to reconsider your options.

Related:How to Buy a Business in the Philippines

Due diligence is a key stage in your entrepreneurship journey. If the company processes its franchisees poorly, they may not be receptive to the support you need. This can lead to failure.

But what does due diligence mean? Take a look at the things you should do below.

1. Research about the inclusions of the franchise

After you have received information from the company, it’s time to dig deeper. Research the cost of equipment, how much franchise fee you need to pay, and how much capital you will need for your first year.

Also, try to see what is included in the franchise fee. Does it include rent or the building? What about marketing and staff training?

2. Research the support system of franchises for entrepreneurs like you

Make sure that the franchise you will buy into has a good support system for entrepreneurs.

Look for franchises that offer business management classes and workshops to help you become more efficient. This will help you run the business better.

3. Assess the company’s reputation

Do not just give priority to the brand name. The company behind the brand is also very important.

• How long has the company been in business?
• How many branches do they have?
• Are they currently expanding?
• Do they have a good track record?
• Do they have a loyal customer base?

4. Look for reviews or talk to franchisees

You may also talk to the current franchisees to get their feedback. Ask them if they have been given support by the franchisor.

Are they happy with their income? What about the ease of operation? Did the franchisor help them achieve their business goals?

Reviews and testimonials from franchisees will give you a clearer picture of what your franchisee experience will be.

5. Schedule on-site visits

Before signing a franchise agreement, you must first visit the branch personally. This step will give you a feel of what the business is like.

You will also see how the employees interact with customers, how the business is run, and how the business is managed. An in-person visit will also allow you to assess if the place is conducive to your liking.

6. Research what people think about the business

To know if a franchise will be successful, you must also look at the market size and demand for the product. Looking at how people feel about the business will help you know how your potential customers will respond to your business.

To find out how people feel about a business, you may browse the Internet or read reviews or look for comments in forums. You may also ask your peers if they see themselves becoming customers of your franchise.

7. Check the competition in your area

If your franchise business has a lot of competitors, ask yourself if you have what it takes to beat them. Study the weaknesses of those businesses and capitalize on them.

If you think you have what it takes, then you may move forward with the franchise plan.

8. Check if the company is facing lawsuits

Before buying a franchise or signing a contract, check if the company is facing lawsuits and if they have any pending cases. Look if there is a history of legal issues.

If the company has a negative history, then you may want to think twice before making a decision.

Related: Common Scams in the Philippines

9. Check if the company is accredited by the government

If you are planning to invest your hard-earned money in a franchise, check if the company has the seal of approval from the government. This will ensure that the company is legitimate and that your investment is safe.

Check if the company is registered with the Securities and Exchange Commission (SEC) and with the Department of Trade and Industry (DTI), as well as with the Bureau of Internal Revenue (BIR). Also, find out if they have the necessary permits and accreditations to operate.

They must also be licensed with specific government agencies depending on their industry. For example, food franchises must be registered with the Food and Drug Administration, and money transfer franchises must be registered with the Bangko Sentral ng Pilipinas.

Another way to verify the legitimacy of a franchise brand is to check its membership with reputable franchise groups in the Philippines. You may check the member directory of thePhilippine Franchise Association,Association of Filipino Franchisers, Inc., orFilipino International Franchise Association.

10. Ask a lawyer to review the contract

The company should be able to provide you with a copy of the franchise agreement. Read them carefully and mark down your concerns and questions. Take the time to discuss these concerns and questions with the company.

Before you sign anything, take the time to ask a lawyer to review the contract. This will help you understand the terms and conditions you are signing up for. A lawyer will also be able to help you understand confusing legal jargon.

Once you buy into a franchise, you are entitled to a certain number of perks. Make sure that you have established your expectations with the company.

Communication is very important, so make sure that you will have a good relationship with your franchisor. If you and your franchisor have clear expectations, this will help your business run smoothly.

You can find the specific franchise application requirements on the franchisor’s official website. But in general, here’s the list of documents you need when applying for a franchise:

• Letter of intent (Some franchisors have a downloadable template on their website.)
• Filled out franchise application form
• Valid government-issued IDs
• Resume of the applicant
• Details about the target location (address, site description, nearby commercial establishments, etc.) plus vicinity map and photos

To give you an idea of what happens during a franchise application, here’s a quick walkthrough of the usual steps involved:

1. Submit your documents to the franchisor via email.
2. Wait for the franchisor to contact you for a meeting and/or site inspection schedule.
3. Meet with the franchisor on the scheduled date. A franchise manager or representative will interview you and orient you on the franchising details. Make sure to ask the crucial questions listed in the previous section.
4. After several meetings and evaluations, the franchisor will contact you again to inform you if you’ve been chosen as a franchisee. You’ll be given a copy of the franchise agreement or contract—review it thoroughly.
5. Sign the contract if you’re okay with all the terms and conditions.

Business owners who provide products/services that are focused on or related to their own interests or hobbies tend to do better. When choosing the franchise for you, lean toward your interests – but do keep in mind the demand for the products/services you will choose.

Recommended Reading: 100+ Profitable Small Business Ideas in the Philippines

Although franchisors will teach you their system on how to operate their business, you still need to have essential business skills of your own. You have to know accounting basics, how to read and work with financial documents, or how to hire and fire employees. If you’re new to all of these, you have to consider taking classes. Doing research is a must.

Just because you have a franchise business selling products/services that have already appealed to people in the past doesn’t always guarantee that your business will go smoothly.

You will still need a plan to grow your business. If you’re a novice who doesn’t know where to begin, you don’t have to be intimidated. You can simply start by setting goals and doing a financial projection for the next year.

Getting advice from a specialist is recommended especially for new entrepreneurs. A specialist – one who knows the ins and outs of the industry well – can also help you polish your business plan. Another specialist you should consider is an attorney.

Tax rules can become confusing for franchises, which is why having an attorney, preferably one who focuses on franchise laws, will be helpful in reviewing franchise agreement documents and potential red flags.

The location of your business is crucial to its success. Choosing a location is one of the most important decisions you’ll make as a business owner.

Consider factors like traffic patterns, parking, nearby stores, and check with the franchisor if you’ll be guaranteed protected territory – this means that no other franchise can open within a certain radius.

Even if you have a solid business plan and have chosen a strategic location, the success of your business will still rely on customer experience.

Employee-customer interactions can make or break any business, so focus on the quality of the service you provide. Hire staff that have a pleasing personality and are eager to meet the needs of your customers.

Even though you’re selling products/services by an established brand, you still have to do marketing. Think about creative marketing schemes for your business. If you need people singing outside the store to attract customers, do so.

Not a lot of people are good with sales talks or even mingling with people. This may also relate to marketing and promotion.

Or maybe you yourself are unavailable to do the hands-on selling. If you simply can’t do the selling, marketing, or promotion of your product, then just hire people who can.

Networking helps both in promoting your business and also learning from your peers. You can do this by attending seminars or expos for your product.

Once you’ve launched your business, learn as much as you can about the industry. Study the trends and what drives the demand. Consider your competitors and maybe you can learn from them as well.

This depends on the franchise agreement. Make sure to ask your franchise attorney about the terms and conditions of your franchise.

Once you have come up with your top three to five franchises, contact them and ask questions. This is your chance to get to know your potential franchisors and determine if you’re a good match professionally.

Treat it like a job interview. Although the franchisor provides franchising information on their website, you’ll want to dig deeper into the details of partnering with the company.

Here are the questions you should ask the franchisor to ensure a win-win situation for both parties:

• What are your criteria for selecting franchisees?
• How much is the total investment package?
• Are there any royalty,branding, marketing, or advertisem*nt fees? If so, how are they computed?
• Can you describe your training program in detail?
• What ongoing support do you provide after the initial training?
• Do you provide assistance for site inspection, evaluation, selection, and construction? If so, do you charge an additional fee for this?
• How do you evaluate locations?
• What are your sales, marketing, and advertising approaches?
• How long will it take until I earn a profit?
• How much liquid operating capital is needed for sustaining the franchise until I get an ROI?
• How do you assist poorly performing franchise businesses? What will happen if mine fails?
• How many franchisees renew their contracts?
• What sets your brand apart from the competition? What’s your unique selling point?
• Do you provideterritorial exclusivityto your franchisees? If so, how will my territory be protected from competing units?
• How do you handle disputes or conflicts between the franchisor and franchisee?

Most franchisors in the Philippines provide the following support:

• Sales training
• Marketing and PR
• Access to supplies
• Financial assistance
• Administrative support
• Proven business plan
• Location support
• Protocols and standards
• Ongoing communication

Franchise businesses usually have a higher success rate compared to startups. This is because they already have a proven business model that has contributed to their success.

No. As with other business ventures, your success largely depends on the market condition, and your ability to lead your team. That said, your franchisor will surely help you achieve success.

If your franchise business fails because the franchisor did not give you the support laid out in your contract, you may sue them for breach of contract.

But if your franchise business fails even if your franchisor helped you throughout your business journey, you may choose not to renew your contract after it expires. You may also request early contract termination from your franchisor.

The major initial costs associated with starting a franchise business are:

• Initial investment or franchise fee
• Lease for location
• Construction expenses
• Business registration and permits

Depending on your franchise business of choice, it can take 2 to 6 months or more, including training.

There are a few things to keep in mind when choosing the location. This includes your target market and demographics, the visibility and ease of access of the location, and the competition in the area.

In most cases, the franchisor provides the necessary support and recommendation in choosing the perfect spot for your franchise business. But before that happens, you do need to come up with your own plan that you believe would generate solid customer traffic in the long run.

And to help you with that, consider the following steps:

1. Initial site research and inspection.

To get a “feel” of your chosen location, consider these factors:

• Site visibility and accessibility
• Potential customer base
• Density of population (within the area)
• Parking and traffic situation

2. Site Evaluation.

With the help of your franchisor, determine the following:

• Competition
• Size
• Public transportation accessibility
• Layout
• Allowed operating hours
• Zoning
• Utilities

3. Franchise Concept.

You need to make sure the place and its surroundings align with the overall concept of the business.

If you’re thinking of selling cold beverages, for example, you’d want a highly-accessible spot that sees plenty of foot traffic.

If you’re selling meat or poultry products, it should ideally be near subdivisions and living areas so customers (mainly households who need it forulam) can easily drop by anytime.

4. Leverage resources and connections provided by the franchisor.

This could include anything from getting a favorable lease or a spot that would otherwise be not offered to other interested parties.

5. Search Online

You could also check out available commercial spaces through online real estate directories and marketplaces such asLamudi,DotProperty, or FranchiseMarket.ph.

Currently, there are no specific laws that govern franchising in the country. That said, franchise holders of MSMEs must have their agreements registered with DTI.