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Archive for October, 2015

From 1 Burger Stand in a Lucena Street to over 850 Outlets in Luzon

Posted on: October 15th, 2015 by Francorp No Comments

From 1 Burger Stand in a Lucena Street to over 850 Outlets in Luzon


Someone once said, “The journey of a thousand pounds begins with a single burger.” For a couple in Lucena, a single burger took them to a journey of almost a thousand vans that has reached millions of happy customers to date.

Francis and Edna Dy sold their first burger 31 years ago, from a mobile van along Quezon Avenue corner Rizal Street, in Lucena City. Edna smilingly recalls the long line up of people along the avenue, queuing for a P3.00 burger to satisfy both hunger and “curiosity”.

The hamburger mobile van was just a simple idea that one day crossed Francis’s mind. Never did he know that that day, their success story is about to unfold.

Not a cook himself, Francis admits his big love for food (and eating) was the inspiration in giving birth to LC Big Mak. He took a chance in bringing his brand and concept alive during the era when American comfort food was running its course in the Philippine market.

Edna, a natural business woman and the hands behind Big Mak’s burger patty, recalls supporting the entire crazy yet exciting idea of the Hamburger Mobile Van.

The name LC BIG MAK INC. has a lot of history to it. LC is Lucena City where it all started. Big buns and big patties is the BIG in the brand name. MAK came from the initials of Mr. Dy’s parents, Maxima and Kimsuy.

For the couple, it should not just be about “good burgers”. LC Big Mak Burger is about satisfying Juan’s taste for real American burger but made more delectable with a mix of Pinoy flavors.

The journey isn’t as smooth at it seemed. But perseverance prevailed. LC Big Mak has come a long way since the time they only had one grinder and used margarine caps as pattern for making patties. It took a lot of hard work, patience, strength and faith in God to grow LC BIG MAK INC. to its present strength of more than 850 burger vans and 12 stand-alone branches, all grilling nationwide.

The fast food sector in the Philippine is on a rapid growth spree with demand for fast-and-easy-to-eat food such as burgers and sandwiches also expanding.  With this, the market’s expansion potential is hungry which is why LC Big Mak is steadfast on its move to wider expansion of its brand, products and services.

Thus, after 30 years of dominating South Luzon’s food scene, Francis and Edna, brought in a new breed of LC Big Mak managers – their children, Mark Francis, Dave Francis, Margaret Ley and daughter-in-law, Charmaine. Together , they thought of franchising this year, to bring forth LC Big Mak into the national landscape.

With their children at the helm, a new image for LC Big Mak was introduced that reflected their modern take on the business,  while honoring the values and attitude they learned from their parents.

Partnering with the world class Francorp Philippines, to infuse the needed franchise expertise, the Dy family have big hopes that LC Big Mak will penetrate larger territories, including Metro Manila, and key cities in Luzon, Visayas and Mindanao.

Big burgers, as its core product, make the LC Big Mak franchise business simple, and easy to operate. Aspiring franchisees can easily own a franchise at a very cost-friendly franchise fee of P150,000 only.

For Francis and Edna, LC Big Mak burgers are made famous with this success equation: FAST SERVICE + GREAT TASTE + AFFORDABILTY. It’s not just about good food or service per se. Standards should always be kept in mind and best practices fulfilled at a constant.

With years of proven expertise as a family in the field of business, food, manufacturing, hotel management, manpower, trucking, and trading, the Dys are well on its way to taking off LC Big Mak from that street in Quezon corner Rizal Street in Lucena, not just nationwide fame but even international.

For franchise inquiries call Ms Rachelle Canuto, # 0998-842-2454 or email

Proudly developed by Francorp Philippines & its team of Franchise Consultants and Certified Franchise Executives. To learn more about how to franchise your business both in the Philippines and internationally, contact a Francorp franchise consultant or take a free franchisability quiz.


Posted on: October 7th, 2015 by Francorp 1 Comment
Rufos Francorp Franchise Consultant Philippines

Francorp’s team of franchise consultants helped Rufo’s create a strong, professional and international standard franchise program

Food franchises are statistically the most successful franchise concepts locally and internationally. In the Philippines, 44% of consumer spending is made on food not only because it is a necessity but because Filipinos naturally love to eat. Rufo’s Famous Tapa capitalizes on these figures and goes a step further by offering a franchise business that serves your favourite Filipino comfort food such as Beef Tapa, Pork Tocino, Liempo, Sisig, Bulalo, and other no-frills dishes guaranteed to satisfy every Pinoy palate. Add to this Rufo’s affordable prices, convenient locations and 24/7 operations and you have what may the country’s next big food franchise.

What started as a small tapsilogeatery in 1984 was acquired and re-engineered by businessman Paul Izon Reyes in 2003. His mission: to expand the brand through franchising under his company, Rufo’s Famous Franchise Corporation. Partnering with Francorp, the World Leader in Franchise Consultancy and with the help of ChinaBank Savings’ supportive SME programs, Rufo’s has multiplied into 19 branchse with plans of having 30 outlets by end of 2014. With the company’s continuous growth, Rufo’s is moving closer to realizing its goal of being acknowledged as the Number One Tapa Restaurant in the Philippines.

Reyes shares, “Rufo’s commitment to serve more people through business expansion and fulfil our mission of becoming the nation’s number one tapa restaurant was further strengthened when we recently won two awards in the Entrepreneur Magazine Franchise Awards for ‘Fastest Growing Franchise’ and ‘Best in Franchise Support’”.


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.


NxtGen entrepreneurs bring new levels of ambition and purpose to franchise industry

Posted on: October 6th, 2015 by Francorp No Comments

“What sets these next generation apart is their ambition and purpose.” With this, Sam Christopher Lim, project lead for NxtGen, opened the night for the first ever “NxtGen in Franchising Award.”

Led by the Philippine Franchise Association (PFA), the “NxtGen in Franchising Award” seeks to promote franchising as a tool to accelerate business growth and recognize the brands and businesses that can scale up through franchising. It seeks to recognize young entrepreneurs who can be the next franchise leaders in the industry.
“When you look at businesses today, they look at hundreds to thousands of stores, and look at their market not in terms of the hundred million in the Philippines, but the hundreds of millions in ASEAN and internationally,” Lim said.

This ambition was seen in the night’s overall winner, Agri, a one-stop agriculture shop, represented by its owner, Mr. Joseph Calata. With over 100 stores, it continues to use franchising as a tool to accelerate their growth nationally. 360⁰ Fitness Club, a locally developed fitness club concept aims to conquer Southeast Asia through its fun, fast and effective fitness work outs. “We’ve started to join international shows and events and plan to expand first into Thailand and then to the rest of Southeast Asia,” said Joanna Pinon, co-owner of 360⁰ Fitness. While Homer Alvarez, owner of BluNektar, started as a bartender on a cruise ship and used his experience in creating concoctions to offer unique cake shakes. He dreams of catapulting his brand to be a recognized and respected beverage chain in the country.

But what sets these next generationentrepreneurs apart is their sense of purpose, of truly doing something to improve their customers’ lives and the community where they operate. They have a social mission that is integral to their business, and is not just embarking on another CSR project. Happy Helpers is a social enterprise that provides reliable and quality home cleaning services and at the same time, provides livelihood opportunities to women in living in Gawad Kalinga communities. The Paper Stone uses eco-friendly materials with the cheeriest, liveliest, and cutest designs for stationeries, journals, pens, and other quirky items. Another finalist, a high quality, but affordable skin andbeauty service center, aims to ensure that “that feeling and becoming beautiful is not a privilege but a right,” saysJasmine Sarmiento, owner of Beauty & Beyond from Cebu.

With the next generation’s continued sense of ambition and purpose, the Philippine Franchise Association hopes to continue to inspire more entrepreneurs to use franchising a tool to expand both nationally and internationally, and to follow the footsteps of Jollibee, Max’s, Bench, Goldilocks, and put more Filipino brands on the global map.

The NxtGen in Franchising Award is the first phase of the global search for the next generation of franchisors. To join the international contest and get a chance to win a trip to the United States together with an opportunity to network, make a pitch, and promote their ideas and concepts at the Next Gen in Franchising Summit to be held in the U.S., apply at Deadline is on October 30, 2015.

6 Young Entrepreneurs Recognized as the NxtGen in Franchising

Posted on: October 6th, 2015 by Francorp No Comments

By Sam Christopher Lim
Senior Vice President, Francorp Philippines

On its 20th year, the Philippine Franchise Association (PFA) continues to stimulate the growth of the industry by ushering in the next generation of franchise leaders. On September 30, during the industry’s most prestigious awards event – the Franchise Excellence Awards (FEA), six young entrepreneurs were recognized as thefirst ever “NxtGen in Franchising” finalists.

The first NxtGen in Franchising Award seeks to promote franchising as a tool to accelerate business growth and recognize the brands and businesses that can scale up through franchising. It seeks to recognize young entrepreneurs who can be the next franchise leaders in the industry.
After an exhaustive search and selection process that yielded entries from north to south, the esteemed panel of judges chose finalists and a winner by judging each entry’s franchiseability and the owner’s ability to communicate the idea.

Agri, with its concept of a one-stop-shop of agricultural inputs, was declared the top winnerand named the first ever NxtGen in Franchising awardee.Aside from providing a wide variety of products, the company also aims to enrich the buying experience of the consumers by providing hands-on demonstrations, technical advice, pre-sales and after sales support, training, and special promotions. Established in 2011, it now has close to 100 outlets all over Luzon and is poised to expand across the country to help Filipino farmers become more productive.

Other finalists recognized during the FEA night were 360⁰ Fitness Club,a fast, fun, and effective alternative workout for busy, young professionals. The club’s friendly and supportive atmosphere is a stark contrast to traditional gyms, and all its workouts are based on science. Also making it to the finals was Beauty & Beyond, a skin and beauty services center that offers high quality products and excellent services at a more affordable price, advocating the idea that feeling and becoming beautiful is not a privilege but a right.

Joining the list of NxtGen finalists is BluNektar which offers cake shakes and dreams of becoming a recognized and respected beverage chain in the country. Its owner, who used to work as a bartender on a cruise ship, drew inspiration from the concoctions he prepared and thought of coming up with a beverage that evokes fun minus the alcohol. As a testament to the wide reach and application of franchising, the next finalist recognized was Happy Helpers, a social enterprise that provides reliable and quality home services and, at the same time, provide livelihood opportunities to women living in Gawad Kalinga communities. It sees the rise of businesses catering to home services for advocates of vertical living. Happy Helpers opens a golden opportunity to offer professional and quality housekeeping and maintenance services to help Filipinos keep their homes in tip top shape.

Rounding up the list of finalists was The Paper Stone,a chic and trendy premium stationery and paper goods store that specializes in designs that delight. The store offers something for everyone – from scrapbooks and journals, to pens and eco-friendly pencils made from recycled newspapers; from craft stamps and stickers, to quirky erasers and lifestyle products.

Despite the varied nature and industries of the NxtGen finalists, what bound all of them together was their ambition and purpose. They look at hundreds to thousands of stores, and look at their market not in terms of the hundred million in the Philippines, but the hundreds of millions in ASEAN and internationally. And they see their social mission as integral to their business and not just another Corporate Social Responsibility (CSR) project.
With such strong businesses and owners that bring the standards of excellence and service to the next level, the franchise industry is strongly poised to continue growing for the next 20 years.

The NxtGen in Franchising Award is the first phase of the global search for the next generation of franchisors. To join the international contest and get a chance to win a trip to the United States together with an opportunity to network, make a pitch, and promote their ideas and concepts at the Next Gen in Franchising Summit to be held in the U.S., apply at Deadline is on October 30, 2015.
Franchise Talk is a content partnership of with Francorp Philippines. For more on franchising, contact Sam Christopher Lim at or visit


L to R Bing Sibal Limjoco (PFA), Joanne Bernardo-Endaya (Happy Helpers), Jasmine Sarmiento (Beauty & Beyond), Homer Alvarez (Blue Nektar), Hans Yao (Paper Stone), Joseph Calata (Agri), Joanna Pinon (360), Ginbee Go (BPI Family Savings Bank)

Franchising Tip: Read your franchise agreement

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

By  Noel Siggaoat, Managing Director, Francorp Philippines

Buying a franchise, especially for the first time, is a major life decision for most people. It requires a huge commitment of time and money and often results to a major change in lifestyle. Although it requires a leap of faith in order to execute, it also requires a lot of careful thought and deliberation.

Surprisingly, many would be franchisees do not exercise the necessary diligence in studying their franchise agreement before signing. Yes, they read the major provisions like royalties, franchise fees, contract terms, and others but they never really go beyond those or at least scrutinize the relevant provisions as deeply as they should.  Sometimes, they are intimidated by the sheer volume of legalese found in a franchise agreement. Some just put their blind trust in the franchisor. The naivete comes back to haunt them later on when they realize they have agreed to something that becomes difficult for them to comply with.

These are some of the provisions in franchise agreements that franchisees take lightly or tend to underestimate the significance of:

Supply arrangements. Franchisors usually require franchisees to buy products from them or from approved vendors only. This is to ensure the quality and consistency of the products or services being sold in the stores. Franchisees should look more closely into these provisions because their margins and, therefore, their profitability could be compromised if these are not priced fairly. While it is normal for a franchisor to require certain items to be purchased from them, the prices at which franchisees buy these items should be competitive with sources outside the system.  The transfer price at which these items are purchased should give the franchisee adequate margins. Since the franchisee is legally bound by the franchise agreement to buy these items from the franchisor, he will not be able to buy from other cheaper sources; otherwise, he will then be in violation of the franchise agreement.

Renewal and related fees. In considering a franchise investment, would-be franchisees look very closely at how much money they would have to raise in the beginning for the initial investment. They scrutinize this figure and compute when they will get a return on their investment. What they fail to take into account is that later on, they may have to spend additionally to renew the franchise after so many years. A renewal fee might be required to continue the business past the initial term of the agreement. The franchisor may also mandate that the store be renovated as a condition for renewal.

While it is normal for businesses to renovate their stores to keep it looking fresh after so many years, would-be franchisees should try to get an idea to what extent the future renovations will be. Would this entail merely repainting and replacing worn-out fixtures, or does this entail a complete redesign of the store and installing major equipment?

Will the Franchisor charge a renewal fee? At Francorp, we usually recommend to our franchisor-clients not to charge renewal fees since there are very little costs associated with renewing an ongoing franchise unlike in the beginning where a franchisor incurs substantial costs in evaluating, training, and marketing to a new franchisee. A would-be franchisee should find out whether or not a renewal fee will be charged.

Territory provisions. Is the franchisor giving exclusivity to a location, or is he giving rights of first refusal? Exclusivity means no other store – franchisee or franchisor-owned – will be allowed to open in the franchisee’s territory. Rights of first refusal to the territory mean that the existing franchisee will be given the option to invest in an expansion store in the territory. If he foregoes that option, the expansion store may be offered to another franchisee or may be owned by the franchisor. This new store may cannibalize some of the first store’s sales and even some of its customers. A would-be franchisee should look closely as to what his rights and privileges are with respect to the territory he is operating in.

Return of Investment. While the Return of Investment figure is not indicated in the franchise agreement per se, it is a figure that would-be franchisees tend to misunderstand.  When marketing their franchise, companies usually quote an estimate of when the investment in the franchise will be recovered by the franchisee. Many franchisees believe that these figures will happen with certainty. However, these are based on certain assumptions happening.  Ideally, these figures are a historical average of what other stores in their system have experienced. Sometimes though, these could be projections based on ideal situations, or in worst cases, they are merely numbers based on wishful thinking. Would-be franchisees should find out what the basis of these numbers are and make their expectations accordingly. In Francorp, we use historical sales data in projecting future sales and consequently, return of investment figures. This way, clients’ franchisees will have realistic expectations regarding the viability of their investment.

In general, franchisees should do their due diligence before entering into a franchise agreement. They should look into all aspects of the franchise. They should not be afraid to ask questions. The only stupid questions are those that are not asked. If they are not comfortable with reviewing legal or business plans, they should get legal or business advice from those able to guide them. If there are any provisions or policies that they are uncomfortable with, they should discuss these with the franchisor or try to negotiate before signing the franchise agreement. Once the franchise agreement has been signed – or any agreement for that matter – the franchisee will not have a lot of leverage to negotiate with. They should not accept as gospel truths the numbers quoted them but use their judgment in assessing the soundness of those figures.

Would-be franchisees should also try to talk to current franchisees of the company. Find out if they are happy with their investment. Knowing what they know now, will they invest in the same franchise all over again?

Reviewing the franchise agreement with due diligence does not always guarantee a happy ever after in franchising. But instead of a leap of faith, going into a franchise becomes a careful, calculated step.