Thursday, December 17th, 2009
We have posted this topic before, but we want to add something to the advantages of franchising in the Philippines, and also give some seminars and conference programs that can assist you if you want to join the franchise in the Philippines.
The Philippines is considered the franchise center of Asia, where the franchise has experienced phenomenal growth in recent decades. Only 50 marks in the 1980s, now there are 1,000 franchise brands in the Philippines (68 percent of them homegrown concepts) in five main areas of franchise fast food, retail clothing, cafes, bakeries and bakeshops, hospitality and wellness, and food carts. Franchising sector of all, the food brands that make up the 41 percent service establishments by 32 percent, and retail outlets from 27 percent.
In the Philippines, where over 45 percent of the retail mall business franchise, franchising contributes 6.6 billion U.S. dollars or five percent of Philippine GDP and provides employment to a million Filipinos .
Joy “Bing” Sibal-Limjoco, CFE (uFranchise and Sales Mgt., Inc.), president of the Philippine Franchise Association (PFA), cites franchising as the quickest method for business expansion.
“In simple terms, franchising works because it duplicates an already successful company,” said Limjoco. “There is already a system in place, and everything a franchisee must do is follow the system – no more hit and miss.”
Franchising, a proven business model with a success rate of 90 percent, uses other people’s money, time and organization, enabling a rapid expansion. With the advantage of being the main, a franchise can penetrate and saturate the market faster, easier to reach the market-leading status.
While current trends point to the food, health and welfare, and tourism related franchises with greater potential, in Limjoco zeros in two fundamental qualities of a concept Franchised: differentiation and profitability.
“Your product or service should be emphasized, there must be something unique in the idea that franchise and should seek their niche,” said Limjoco. “And of course, the concept must be profitable – which is the bottom line of business”.
For those considering franchising, it is recommended that the business must have been running for at least a year now, to have a reference point for future franchises.
“The franchisor must have a solid business plan,” adds Limjoco. “He must know where you are and where you want to see himself in the future, and how you will do it.”
To set a franchise, the franchisor should have a potential franchise development process, defining the structure of the franchise. The franchisor can do this on your own if you are sufficiently qualified, or consult with experts from the franchise in the Philippine Franchise Association.
“While there is no registration requirement exclusively for the franchise, it is important to have a trademark for his idea in the Intellectual Property Office to claim ownership of your brand,” advises Limjoco. “All business endeavors also must be registered with the Department of Trade and Industry (DTI) for single property and the Securities and Exchange Commission (SEC) for business.”
The potential franchisee, you can set the franchise agreement to develop the franchise operations manual, and then begin marketing and sales franchise, either through a franchise broker or your own department.
The comparison of the franchise to a marriage, Limjoco emphasizes the importance of thoroughly screening potential franchisees: “The relief must be made with the right partner, but must stay in business longer.
Above all, Limjoco reveals that the most important factor for a franchise: the passion of the franchise for your business.
“The franchisor must believe in its concept and wants to grow. When to succeed in the heart and tend to do what is necessary to achieve its objective. So, the commitment of the franchise does not feel like work, but second nature, “he concludes.
Tags: Asia, Business, Fast food, franchising, Opportunities, Philippine Franchise Association, Philippines, United States dollar
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Thursday, December 10th, 2009
Selecting a Franchise
Personal observation frequently sparks interest, or awareness may begin with exposure to an advertisement in a newspaper or magazine or on the Internet. The nature of the commitment required in franchising justifies careful investigation of the situation. The evaluation process is a two way effort. Time is required for this type of analysis. You should ask yourself whether this company will provide as much attention and the same support services to its franchisees as it does to the outlets that it owns. And you need to speak with current and past franchisees. Would they do it all over again?
Since most states require registration of franchises, a prospective franchisee should not overlook state offices as a source of assistance. You should understand all the provisions in your franchise agreement and review the agreement with an attorney knowledgeable about franchise law. Read the fine print in your franchise agreement. Remember, the 10 day rule applies to the signing of any franchise agreement. If there are any problems or points of needed negotiation, communicating with your franchisor will take time.
Hiring a Franchise Lawyer
Not only will a lawyer help you to interpret the franchise agreement contract, but he or she will also ensure that you do not inadvertently make any costly mistakes. Be sure that you hire someone with expertise in franchise law. A number of resources exist that can help you locate the right lawyer. The American Bar Association hosts a forum dealing exclusively with franchising which is organized according to geographic region.
Tax and financial laws are complex, and finding a reliable Banker, CPA, or CA will be a key to your success. You can locate a financial advisor through local association websites. In most cases you will not own your business in your personal name, thus avoiding financial and legal obligations. The entity you choose can affect everything from your payment of taxes, liability, and financing options, as well as the kinds of relationships that will be fostered between you and your managers.
There are many legal forms from which you can choose, including a sole proprietorship, general or limited partnerships; a joint venture; a C or S corporation (depending upon other sources of income); a limited liability company; and a registered limited liability partnership. Choosing the right one for you will largely depend on your own goals and upon the functioning and structure of your particular business. These professionals will be able to take you through potential business scenarios to help you determine which will work best with your business.
Tags: American Bar Association, Business, Company, Corporation, franchising, Law, Opportunities, Sole proprietorship
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Wednesday, December 9th, 2009
If you’re looking at starting your own business and you should consider all the options that are available to you. Many people find that a franchise is a good way to start a business that will make money from the beginning. With the franchise you’re buying a business that has a proven name in the industry and this gives you a benefit from having to build your own name. In some cases it can cost you more money to purchase a franchise that having everything done for you and be well worth it. When you open your doors you will find that with a franchise business people will not hesitate to come in and purchase your products.
Starting your own business can be very expensive because not only do you have to create a product and a company image you also have to get people to come into your front door. With a franchise people will feel confident because they will see a brand name they recognize and will not hesitate to make a purchase. You have to remember when buying this type of business you are also buying a reputation that in many cases can be priceless.most people that start independent businesses have to build up their name brand before customers feel comfortable buying their product.
Remember that when you start a business you need to consider buying a franchise because everything is ready to go for you. You also want to consider that having a brand name that is recognizable to be a big plus for you to be successful. Also with a franchise business you get a support team that can help you through getting set up and on your way to making money quickly.
Tags: Brand, Business, Consulting, Directories, franchising, Opportunities, Regional Directories, Small Business
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