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Archive for July, 2015

360° Fitness Club Franchise: Beyond Working Out

Posted on: July 26th, 2015 by Francorp No Comments
Franchise Success Stories, Gym Franchise, Franchise Development, How to franchise your business

360 Fitness Club Franchise

Four years ago, 360° Fitness Club revolutionized the local fitness industry by introducing and promoting a no-machine, total circuit body workout in thirty minutes. Efficiency was the key message: you can reap the benefits of a full body, complete workout in just half an hour and without the use of machines. It changed the ballgame because it challenged the traditional gym workout which was several hours working with weights and various machines just to achieve the level of fitness desired.

Over twenty five thousand individuals have tried 360° Fitness Club’s unique style of training since it introduced functional fitness regimens to the country. Now, other  gyms have adopted this training method. 360° Fitness Club has paved the way and is constantly innovating on its fitness philosophy. Being fit and healthy is not the end goal; it is the means by aspirations are attained. It prepares people for something more important– life outside the gym. That’s what it means to Get360Fit.

Building on the philosophy of an efficient workout, this was pushed even further. The training one gets at 360° Fitness Club is best suited for everyday living – simulating natural movements and addressing all muscle groups –preparing one physically, mentally, and emotionally for an active life.

Beginning with Efficiency, modules are short but effective, giving a full workout in half an hour for more time to pursue other activities. It mimics natural movements and engages the body the same way as everyday movements like climbing stairs, playing with kids, or lifting heavy items like a briefcase or backpack.

A Holistic approach is also taken so it’s not just bodies getting healthy, but minds and spirit as well. The programs aim not just to improve the body, but also to instill discipline and focus. Group classes and wellness talks create a fun atmosphere that encourages members to push themselves further while the programs adjust to each one’s fitness level as they get stronger. Coaches help members set goals for themselves that prepare them for life’s challenges– to be physically, mentally, and emotionally equipped to face them head on.

Dynamic comes in because the circuit program changes every three months to accommodate the growth of the individual. New group classes are also introduced periodically. For a program to be effective, it has to change as body and mind change.

How ready are you for life?”” That’s the question the club is preparing all members to answer confidently. As training programs progress and evolve with the individual, the fitness philosophy evolves as well. As we say at 360°: “We are in love with fitness. We believe in setting goals and constantly beating our personal records. We need to keep challenging ourselves and maximizing our potentials. Continuously trying to become the best version of ourselves is our never-ending goal. We are in love with fitness, because fitness is our way of life.”

Franchise inquiries are entertained at franchising@ufranchiseasia.com  

New Scenery in Franchise Retail

Posted on: July 25th, 2015 by Francorp No Comments

Local retailers are bracing themselves because with the dawn of the ASEAN Economic Community (AEC), our local consumers will eventually be exposed to heretofore unseen products, marketing schemes, promotional gimmickry, payment modes and many others that have already taken place in our sophisticated neighbours’ retail domains and which they may bring here.

Pretty soon, there may be consumer experiences like what the Financial Times describes as “pop-up stores to satisfy demands for immediacy and surprise.”  According to Spire Research, to create instant buzz using short-term leased space and cost-effective ways for new products, a theme is created for each floor display which is sponsored by a brand.  

Crowd funding is also getting to be popular among start-ups because people with good business ideas can get funding to launch their concepts. The crowd funding research firm, Masssolution, said 600 global crowd funding platforms raised US$5.1 billion in funds in 2013, up from the 308 made in 2012 which raised US $2.7 billion.

The Financial Times also cites the trends towards more regional trade hubs where there will be reshoring or production close to markets, as well as more intra-regional investment flows and trade that will shift economic power from West to East and North to South.  With its huge potential for economic power, the ASEAN will eventually be a testament to this.

Traditional retail models in the Philippines has not yet broken down because Filipinos still prefer to go to stores, especially in malls, to feel the thrill that go with canvassing, window shopping, and ultimately, buying. Although online marketing and consumption have gained popularity in the last decade, we still enjoy the mall ambience, perhaps make our senses enjoy the sights and sounds, and then buy what we need or don’t need. The middle class, with its burgeoning consumption power and young demographics, are at the forefront of the buying frenzy. Brands which have benefitted from this growing base are the following:

 

YOUR OWN TIME (Y.O.T.), ITS FRANCHISING TIME HAS COME

 

Those mechanical gadgets called wrist watches or pocket watches used to be just functional time pieces. Through centuries, these watches have evolved to become objects of desire, necessity, and fashion. There are now a variety of commercial watches, leisure and fashion watches, and sports watches. If these are not on everybody’s wrists, they also appear as pocket watches, in pendants, in the car dashboard, in one’s personal computer and lately, as an ubiquitous feature of smart phones.

Most of the important players in the global watch industry are in Switzerland, Japan, Hong Kong, and Mainland China. New names have come in and are starting to create buzz such as the number one selling brand in Brazil.

Your Own Time (Y.O.T.) arrived in the Philippines in 2009, glowing with youthful, bright, and cheerful appeal. The young especially fall for its interchangeability, making it perfect for fashion and easy on the yuppies pockets.  One Y.O.T. kit contains one watch and 5 different cases, bracelets, and bezels. Imagine getting 125 watches for the price of one, to match any personality or style.

Y.O.T. is designed to be worn by both men and women, making it an accessory that can be shared. It is presently enjoyed by fashionistas in Latin America, Europe, North America, the Middle East, and in the Philippines, where 10 outlets have been opened.  It is now a franchise business beckoning entrepreneurs who want to join the global watch revolution. The Y.O.T. franchise is a turn-key package for a kiosk inclusive of franchise fee, construction of its signature kiosk, and initial inventory. With the enormous youth population, the market potential for Y.O.T. is as huge. Franchisees In Luzon, Visayas, and Mindanao are invited to bank on this franchise and their time starts now.

 

POIS BELLY AND KIDS

 

The race is on between homegrown brands and international apparel brands who are now competing on a level playing field because of the entry of well-known clothing lines from all over the world into the Philippines.  Since 2012, global name brands have started sprouting in Metro Manila– the likes of Uniqlo, Cotton On, Forever 21, Miss Selfridge, Superdry, American Eagle Outfitters, and Sperry Top Sider are in high-end and mid-end malls.

The situation has challenged our local apparel outlets to level up and because Filipino consumers love design and quality which are both present in global and local brands, they are willing to purchase both. And with the growing consumer power and fashion-conscious outlook of the middle class, especially the young professionals, apparel will always enjoy capturing a sizeable chunk of the market.

According to the Euromonitor International July 2013 Report, though online retailing of clothes is getting to be popular, buyers still want to go to stores and experience fashion for themselves. Department stores or boutiques are still the destination if one wants clothes, sportswear, and footwear.

With a rosy outlook in the fashion industry, many Filipino brands are confident about their prospects. One of them is Pois Belly and Kidswhich housesthree fashion-niche brands – Pois, Belly Maternity, and Great Kids . Pois Belly and Kids is committed to building a world-class brand and continuously cater to the dressing needs of fashionable tykes and ‘tweens as well as expecting moms.

From a home business in 1999, selling a maternity line called Great Expectations to friends and family, it gradually expanded into girls’ wear. In 2004, in view of the demand for good quality and stylish fashion clothing for children, the Great Kids brand of apparel was conceived to cater to mini fashionistas aged 2-12 years old who look up to and want to emulate their stylish mothers. Great Kids was a hit for parents and their girls as the brand not only provides an extensive range of choices but also boasts of quality and comfort (clothes are mostly made of imported, high quality, breathable cotton and bottoms have adjustable waist systems).

Rowena Velasco, president, explains that in 2006, the brand Pois was conceptualized after much demand from loyal customers who have “graduated” from the Great Kids children’s sizing. Pois is a play on the English word “Poise”.  Without the “e”, the name evokes curiosity and reflects a playful and yet sophisticated touch – apt for ‘tweeners who are enjoying the in-between years of childhood to womanhood. Pois is a range of pretty and fun fashion that reflects the light-hearted mood of the ‘tweens and teens.

Now that Pois Belly and Kids is “poised” for greater growth through franchising, expect more stores that would reflect the stamp of unique beauty and craftsmanship that only a Filipino apparel boutique can boast about.

 

MR. QUICKIE

Posted on: July 8th, 2015 by Francorp No Comments

Emiliano R. Caruncho III conceptualized MR. QUICKIE in 1981 because of thrifty Filipinos’ penchant for shoe repairs instead of buying brand new pairs. He saw the potential of quick fix professionals taking shoe repair to a high level by injecting true craftsmanship; fast, clean, and courteous service via outlets that can provide prompt, useful, innovative, convenient, practical, affordable, superior, and world-class quality products and services that use good quality materials and state-of-the-art technology. These services and products will be at convenient and accessible locations all over the Philippines.

There are already more than 166 stores that advocate a culture of Total Quality Management, achieving the best standards in products, services, structure, and business processes. Mr. Quickie is already an established brand with plans to go to Guam and all over Asia.

To learn more about how to franchise your business both in the Philippines and internationally, attend a How to Franchise Your Business Seminar or take a free franchisability quiz.

 

More Regional Brands take off thru Franchising

Posted on: July 4th, 2015 by Francorp No Comments

regional-franchises

Francorp continues to help brands grow from one to many through franchising. Choobi Choobi from Cebu is a shrimp & seafood franchise that’s taking off with a target of 150 stores in 3 years. LC Big Mak from Lucena has over 800 branches nationwide of its Pinoy tasting burgers. Mr. Potato from Cebu continues to bring Cebu’s flavoured-fries to the entire archipelago and the world. Sans Rival brings its unmatched cakes & pastries from Dumaguete City to the rest of the Philippines. With strong, professionally developed franchise programs, more regional brands continue to find national success through franchising. To know if your brand is franchisable, take a free franchisability assessment on www.francorp.com.ph.

Franchising Continues To Grow New Industries

Posted on: July 1st, 2015 by Francorp No Comments

Noel Siggaoat
Managing Director
Francorp Philippines

At Francorp, we live and breathe franchises. Day in and day out, we help start-up and established businesses grow from one to many through franchising. In the course of doing franchise consultancy work for close to twenty years now, Francorp has been at the forefront of the latest trends in franchising in the Philippines. Below are the top three trends that will impact the Philippine franchise landscape in the next year or two, and beyond.

1. The Boom in Education Franchises

Education franchises have been around for many years now but in the last year or so, we’ve seen an explosion of education businesses opening their doors to franchising. In this category are pre-schools, math programs (computational or analytical), reading enrichment programs, professional review schools, specialty skills schools, to name a few. The origins of these concepts are both foreign and homegrown.

The demand for education in all its forms is a good sign for a country like the Philippines as it gains momentum towards developed-country status in the next decade or so. Another explanation for the growth in schools is the growing number of parents who don’t mind spending on development programs for their children, believing that these are complementary to formal education and will contribute to the child’s overall development. Of course, the growing young population is an important driver of demand for this segment.

This increasing demand for education makes enterprising Filipinos go into the education business as start-up entrepreneurs or as franchisees. Brands such as the Canadian Tourism and Hospitality Institute (CTHI), Aloha Arithmetic, Readsmart Learning Center (formerly Infant Jesus Montessori), Explorations Pre-School, Mathemagis Singapore Math, and CMA Mental Arithmetic have all started to franchise.

2. Use of franchising to reduce distribution layers

The traditional franchisor is the retail store or restaurant owner who goes into franchising to increase his number of branches. We are seeing a new breed of franchisors: Original manufacturers or master distributors going into franchising to reduce their distribution layers.

The Generics Pharmacy is one of the first to adopt this strategy. Instead of staying with the traditional system of supplying to distributors, who then supply to other distributors, or to stores and retailers, many manufacturers and master distributors are reducing the distribution channel by putting up their own stores directly and making these available through franchising.

Instead of being at the mercy of third-party retailers at the end the channel, these brand owners or master suppliers are controlling their own destiny by specifying how the store will look, how the products are marketed, and even the price at which these products are sold to the end consumer.

By cutting out the middle man, brand owners are able to lower the retail price of their products. Additionally, they are able to increase margins for those that remain in the channel.

Aside from The Generics Pharmacy, Francorp has helped develop brands such as PR Gaz Haus, and Holcim Cement to grow through franchising.

3. More complex franchise formats

For many years, franchise formats in the Philippines were the garden-variety Single Unit franchise. As the franchise industry becomes more mature, more innovative and complex formats are being employed.

Franchisors are now looking to add multi-unit formats like Area Development franchises and Master franchises to their offerings. Area Development franchisees are wholesale multi-unit owners who are given exclusivity for a city or province. Master Franchisees usually own the rights to an entire state or country and also have the option to sub-franchise to third-party investors. This is commonly used for international expansion.

Some franchisors are also offering Conversion Franchises, where independent store owners already in a similar business convert their stores and become part of the franchisor’s brand and network. Some franchisors go into Joint Ventures with their franchisees and are part-owners of the franchise store. In this set-up, they earn as a franchisor and a franchisee at the same time. Some franchisors, on the other hand, intentionally look for passive franchisees who are only interested in putting up the capital for the franchise unit; the franchisor himself will manage the franchise for an additional fee.

As franchising continues to grow in the Philippines, we may see more of these newer and innovative formats to meet the needs, capabilities, and goals of franchisors and franchisees.

Franchise Talk is a content partnership of ABS-CBNNews.com with Francorp Philippines. For more on master franchising & to meet foreign franchise brands, attend the How to Franchise Your Business Seminar on Jun 13 & 14 at Franchise Asia 2015 in SMX Convention Center Mall of Asia. For more information contact franchisetalk@francorp.com.ph or visit www.francorp.com.ph for more information.

Noel Siggaoat is the Managing Director of Francorp Philippines. An MBA graduate of the Carnegie Mellon University of Pennsylvania and a Certified Franchise Executive (CFE), he heads the firm’s consultancy practice. Noel has a diverse background in IT, finance, retailing, and franchising and has worked with companies here and abroad. He is a weekend athlete who has completed marathons, a half-Ironman, and other endurance events.