Why Franchising Is Hot In The Philippines

Franchising has been deemed as a hot commodity in the country mainly because Filipinos are practical thinkers and with this comes the copying of trends. It would be quicker and easier to be a franchisee in an already successful fast food chain, than to start a new unknown business where you have to input much effort into getting the new one to draw in consumers. With starting a new one comes the trial and error for the daily operations, publicity, and courage to waste loads of cash for something that is uncertain. Franchising would be an easy business and it won’t really have those risks that would involve in creating one that’s relatively new to the consumers’ ears.

 Currently there are:

·          1,000 brands are now franchised in the country;

·          There are five principal franchise sectors: retail (specifically clothing); cafes; fast food; bakeshops, hospitality and wellness and food carts.

·          45% of the sales from retail outlets within shopping centers and malls are from franchised businesses;

·          Franchising contributes around $6.6 billion of the Gross Domestic Product of the Philippines, which is around 5% of the GDP; and

·          Franchised entities employ around one million Filipinos.

Binalot Fiesta Foods, Incorporated (BFFI) is one of the top brands available in the market. As hot as the summer, Binalot has one of the lowest all in investment package of 1.9M depending on the size of store. All in package includes minimum franchise fee of P500,000 (depending on location), construction, equipments, small wares, fixtures and furniture. 

As Samie Lim, chairman of Francorp Philippines put it, “Consumer index is at an all-time high. This is highlighted by new investors’ confidence in the country. Would-be franchisees include OFWs and new entrepreneurs who need to be guided by a ‘big brother’ in ensuring that their venture is a success.” Not only would this be an easy way in to the business, but it would actually help those who do not have a knack for starting their own brand. Less time, less risk and less effort – these are the reasons why our country would depend on franchising instead.

The same with Binalot’s guarantee of LESS, currently they have pre-approved sites ready for takeout anytime. Less time to start building your own store and earning the Binalot way. Compared to regular sites, market research and viability for Binalot branch is already done for pre-approved sites. Hence, once taken and upon payment, construction can start easily. PRE-APPROVED SITES are available for a limited time only since typically these are very good locations and many brands are competing for it.