Francorp - The Franchising Leader in the Philippines
Francorp - The Franchising Leader in the Philippines

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Archive for August, 2017

Educate Your Way to Riches

Posted on: August 25th, 2017 by Francorp No Comments

By Hsien Naidu, Astreem Consulting

The education industry has always been one of the most robust, resilient to recession and almost always have a loyal customer base. With the middle to higher income families spending an average of USD 1.5 – 4.5 million ¹ annually on education in 2015, is it not time for aspiring entrepreneurs to get a slice of this pie?

Start by determining policies such as in pricing, discounts, make-up sessions, lesson scheduling.  Find out who the market is and strategize on how to reach them. Create marketing collaterals such as brochures, flyers, sign boards, and a Facebook page. Finally, create a curriculum on what you want to teach and methods to be used.

New education businesses can take more than 2 years before stability and traction are reached because of the massive amount of work that needs to be done.Or, one can take the easiest route and franchise from one of these internationally successful brands:

Seriously Addictive Mathematics (S.A.M.)

Founded in 2010, this brand is now in 16 countries, with over a hundred centres worldwide. Growing rapidly, this franchise already has 15 centres within 2 years of entering the Philippines mainly because of the growing interest in Singapore Math.

The S.A.M. approach, known for its highly creative and structured methods, utilizes meticulously-authored “step-up” daily worksheets that allow children to approach the subject with incremental steps of difficulty, gradually acquiring the skills to solve full problem sums. The worksheets are structured in such a way that they are always motivating for the child – helping develop self – discipline, self – confidence, and perseverance while learning mathematics. The S.A.M. approach closely adheres to Singapore’s mathematics curriculum in preparatory and primary schools.

Unique English Classroom

A highly sought- after English program in Singapore, the Unique English Classroom is a synergistic think-out-of-the-box, highly-interactive, and fun series to accelerate the teaching of English, encompassing 21st century learning competencies. The Unique English Classroom™ has found a niche in more than 150 Singaporean primary and secondary schools since it was first introduced in 1996. This programme is also supported by Ministry of Social and Family (Singapore).

The Unique English Classroom is not your run-of-a-mill English reading and writing program, but rather, a program that focuses on children’s comprehension and logical reasoning, designed to boost children’s confidence with every lesson. Each lesson is fun filled and exciting, with stories and games, drama, and storytelling.

StagMatch Education and Training Group)

With robotics in mind,StagMatch Education and Training Group, an international franchise to be launched in January, will set up centres in Singapore, Malaysia, Australia, and the Philippines. Founded in 2001, they have quickly been recognised by different ministries in Singapore and featured in multiple mainstream media, and won the “Best in Enrichment Experience 2014/2015” by the Parents World magazine. Their robotics programs includes drone flying, hologram creation, 3D printing, coding, engineering and designing robots for combat competition, each geared towards immersing and preparing their students for tomorrow.

¹https://psa.gov.ph/sites/default/files/attachments/hsd/article/2015.pdf

7 Things You Didn’t Know About The “Father Of Philippine Franchising”

Posted on: August 18th, 2017 by Francorp No Comments

The seven things you did not know about the “Father of Philippine franchising”, Mr. Samson “Samie”Lim are:

1. He did not know anything about franchising when he started.
When Samie Lim started in the franchise industry 20 years ago, he was already a seasoned retailer, but he recalled: “Everything I learned about franchising, I learned from someone else.” He not only brought the ideas of the world-renowned franchise consultancy firm Francorp to the Philippines but also its international franchising standards.

2. He is a franchisor and franchisee in his own right.

He is the president of home appliances store Automatic Center and lifestyle furniture store Blims Lifestyle Group.  He is also a franchisor of living room essentials store La-Z-Boy Gallery.   He is also the master franchisee of the Canadian Tourism and Hospitality Institute for the Asian region.  He is also a franchisee of French furniture brand Gautier.

3. He is also the “father” of Mother’s Day in the Philippines.

He is also credited for popularizing Mother’s Day. He pushed the members of Philippine Retailers Association and Philippine Franchise Association to offer Mother’s Day treats to their customers.   “My greatest joy is the fact that I have made a difference in the lives of millions of Filipino families with the annual celebration of Mother’s Day,” he said.

4. He has a knack for uniting otherwise fragmented business sectors.

As a retailer, Samie Lim started in the appliance and furniture industry. Then, he moved to unite different retailers which gave birth to the Philippine Retailers Association (PRA), and then the Philippine Franchise Association (PFA) also followed. Now, he seeks to unite the tourism and/or the private education sector.

5. He once served as Trade undersecretary.

In 1999, Samie Lim served as the Undersecretary of the Department of Trade and Industry (DTI). During his term, he also became the general manager of the National Development Company, but he also served as the president of the Philippine Chamber of Commerce and Industry (PCCI) in 2007.

6. He wanted to become Vice President of the Philippines.

Samie Lim had grand ambitions on how to build the nation and its industries, and he eyed the vice presidency. “However, the declaration of Martial Law crushed my dream, so I moved to Plan B,” he recalled.  His Plan B was to strengthen the different industries by uniting business organizations.

7. He was born at home with the aid of a midwife

Samie Lim was born at home with the aid of a kumadrona (widwife) in a middle-class family in Tondo, Manila.  He inherited his entrepreneurial trait from his family.  As a kid, he was selling batteries to his neighbors! Thanks to an Ateneo de Manila University scholarship, he graduated cum laude.

Samie Lim is now living his dream because the Philippines franchising industry currently employs 1.2 million people across 130,000 outlets all over the country.

FRANCHISE TALK

Posted on: August 11th, 2017 by Francorp No Comments

PIZZA BRANDS CONTINUE GLOBAL EXPANSION

Take a bite out of these regional pizza favorites.

Sam Christopher Lim

SVP, Francorp Philippines

Thanks to the movements of the Italian diaspora, Italian cuisine has gained wide acceptance all over the world. While it’s hard to turn down a plate full of pasta, it’s even much harder to turn down a slice of pizza. (Recently, it’s even been found that pizza is a better motivator at work than monetary incentives!)

Indeed, pizza remains one of the pillars of the food service industry’s global foothold. According to market research firm Euromonitor International, pizza chains now represent nearly 5 percent of global consumer food service sales, and now account for US$124 billion in global spending. Euromonitor adds that Asian markets exhibit great potential for effective segmentation in the pizza market, even citing homegrown pizza brand Greenwich as a growing force to be reckoned with in the Philippines.

From traditional full-service pizza parlors to artisanal gourmet pizza, here are some international favorites out to take the global pizza market by storm.

YELLOW CAB

A slice of the Big Apple at your doorstep

New York, also known as “the Big Apple,” is a city known for its fast-paced urban lifestyle. But, thanks to Italian immigrants, New York has also been known for its pizza which boasts of big flavors and big servings. It is this same New York-style pizza experience which Yellow Cab aims to deliver at every doorstep.

From the no-fuss selection of pizza toppings, down to the speedy pizza delivery service using iconic yellow Vespa scooters, Yellow Cab has garnered a huge following and has successfully positioned itself as a quick casual restaurant to beat internationally.

And since Yellow Cab is all about the good stuff, it only uses fresh and premium quality ingredients for its signature pizza and pasta offerings. Yellow Cab’s signature flavors, such as the ricotta cheese and roasted garlic perfection found in the Dear Darla rolled pizza or the nutty-spicy goodness of the Charlie Chan chicken pasta, are often imitated but are never rivaled in taste.

With over 120 stores in the Philippines, Qatar, UAE & Saudi Arabia, Yellow Cab continues to spread its New York-style pizza experience all over the world, planning 15 stores in China and dozens more across the globe.

SHAKEY’S

Pizza fun for the whole family

Shakey’s is recognized the world over not just for being the first pizza franchise chain from the United States, but also for having the world’s greatest and most-loved thin crust pizza—with a side of chicken and mojos, to boot.

For the past 62 years, Shakey’s has left its mark as the pizza brand which celebrates fun times with friends and family. Spacious pizza parlors decked with arcades and play areas make Shakey’s appealing to both adults and children alike. It is this focus on fun times with the family which has enabled Shakey’s to become the market leader in traditional full-service pizza chains and family-style casual dining.

Even after decades of success, Shakey’s is showing no signs of slowing down. Now with 500 stores worldwide, with established presence in the United States, Japan, Philippines and Mexico, Shakey’s is now setting its sights for further expansion in Asia, the Middle East, Australia, and New Zealand.

PROJECT PIE

The freedom to create artisan pizza everyday

When serial restaurateur James Markham founded Project Pie in 2011, he wanted to give customers the freedom to create taste. Since then, Project Pie has positioned itself as a fast-casual restaurant where customers can custom-build their own pizzas using a wide selection of sauces and toppings.

Incorporating an assembly line counter, the Project Pie crew will then assist customers as they assemble their own custom-build pizza creations. The diverse selection of sauces and toppings on hand can be quite intimidating at first, but don’t fret—Project Pie also came up with a set of seven classic pizza flavors you can choose from when the build-your-own pizza concept gets a little overwhelming. This build-your-own concept has since gone beyond pizza and has been extended to Project Pie’s selection of salads and pastas as well.

Today, this relatively young custom-build artisanal pizza concept from the United States is holding its own in the global pizza market. Project Pie has already established its presence in the United Kingdom & the Philippines but wants to further expand in the Middle Eastern and Southeast Asian markets.

While pizza is distinctly Italian in taste and origin, pizza brands such as Yellow Cab, Shakey’s, and Project Pie always make it a point to adapt to the changing taste preferences of the diverse markets they are in. Adapting to the changing needs of local markets, backed by dynamic and engaging marketing campaigns, only serves to ensure the continued global success of these pizza brands.

To know more about international franchise brands, contact U-Franchise Sales & Management, www.ufranchiseasia.com, Tel No.:  (+632) 634.05.86 or Email: franchising@ufranchiseasia.com.

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Sam Christopher Lim is the senior vice president for marketing and strategy at franchise consultancy Francorp Philippines; president of U-Franchise Sales & Management; and chairperson and director for special projects for Asean integration at the Philippine Franchise Association.

FranchiseTalk

Posted on: August 4th, 2017 by Francorp No Comments

TOP5 NEW-FRANCHISOR MISTAKES AND HOW TO AVOID THEM

By Manuel “Noel” Siggaoat

Managing Director, Francorp

Thinking of franchising your business? Franchising can be a great tool for growing your business and can also be rewarding profit-wise. But franchising can be a double-edged sword. If done poorly, it can cause your business more harm than good. Here are some of the most common mistakes many new franchisors make and how to avoid them.

  1. USING SOMEBODY ELSE’S FRANCHISE AGREEMENT

Using some other company’s franchise agreement is like wearing somebody else’s wedding dress to your own wedding. For such a milestone event, you would most likely have your dress or suit made to your own specifications. Yet many new franchisors copy their franchise agreement from other businesses that are already franchising because they want to save money, don’t have time to wait for a custom-made agreement, or believe a franchise agreement is just like any other franchise agreement. However, the so-called savings on money and time are short-lived; in the long-run, these companies run into more problems and end up paying more for those mistakes. Even if a company has a successful franchise program, that program may not necessarily be applicable to your business. Your franchise agreement should be tailor-fitted to your unique business. It should come after a careful and thorough strategic and financial planning process built around your company’s unique business strengths and development goals.

  1. CHARGING TOO HIGH A FRANCHISE FEE

Some new-franchisors charge a high franchise fee from the start because they want to make money on the relationship right away. If you look at the cash flow coming to you from franchising, you will see that the franchise fee is only a small part of what you will make as a franchisor. The major income will come from the ongoing fees – royalties and sale of merchandise/supplies, services, etc. If the franchise fee is just a small portion of what you will make, it doesn’t make sense to charge a high franchise fee that will only discourage the entry of new franchisees, when it isn’t your main source of revenue anyway. It makes more sense to charge a reasonable franchise fee to bring franchisees into the system, then make your money on the ongoing royalties and sale of supplies/merchandise. Better to treat your franchise fee as a cost recovery fee: charge enough to recover your expenses in setting up the new franchisee: marketing, site assistance, applicant evaluation, training, etc., but don’t charge way beyond those.

  1. NOT HAVING A WIN-WIN PERSPECTIVE

Franchising should be a win-win arrangement. Franchisors and franchisees should profit from the relationship. Some franchisors have a short-sighted view and design their financial package only taking into account how much money they will make and not how profitable the business will be for their franchisees. They do this by charging fees – royalty, franchise fee, product mark-ups – that result in very little profit for their franchisees. Another way this happens is when they window-dress their franchise offering by projecting higher-than normal sales in order to get a higher return for their franchisees – on paper. This short-sighted approach will backfire in the end. When franchisees begin to feel the pinch of very little or no profits, the franchisors will regret not taking care of their franchisees from the very start.

  1. TAKING TOO LONG TO FRANCHISE

The general thinking regarding the right time to franchise your business is that you should wait for about two to three years or have opened two to three branches. This is more of a guide than a rule. If you are the first-to-market with a unique product or service, then waiting too long might give others time to copy your idea. Sometimes, more aggressive copycats will even surpass you, making you lose the prime mover advantage you had in the beginning. In cases such as these, it would be better to launch and learn, meaning that you should franchise your business quickly to maintain your market lead, then perfect your business as you go along. The Generics Pharmacy only had 1 branch when they started franchising. But if they waited too long to franchise, then many other brands would have joined the market and negated their early entry into the market. Their quick-to-franchise strategy worked. TGP grew to 500 branches in its first three years. By the time other generic drugstores had entered franchising, TGP already owned many of the coveted locations. They already had top-of-mind brand status.

  1. SAYING “YES” TO APPLICANTS THEY SHOULD SAY “NO” TO

Some franchisors are so excited to grant franchises that they compromise their selection criteria and grant franchises to applicants they are not entirely convinced would make good franchisees in the first place. The short-term gains – franchise fee, sales revenue, royalties – will later be nullified by the long-term losses – inability to collect receivables, lost sales to customers of the brand, negative image from closure of the branch. These are the top mistakes new-franchisors make but they are not the only ones. The best way to avoid these mistakes is to enlist the help of experienced professionals with multi-disciplinary expertise in franchise strategy, finance, legal, operations and marketing to help you do things right the first time. In franchising, there might not be a second chance to fix these mistakes. Because other investors are involved – i.e. franchisees – there is very little room for error on the franchisor’s part.

Francorp is the world’s leader in franchising. Take a free franchisability test (http://francorp.com.ph/are-you-franchisable/) and learn whether your business is ready to grow through franchising. For more information on franchising, contact Francorp Philippines at (02) 638-3149,(+63917) 835.55.30, email info@francorp.com.ph, or visit francorp.com.ph.

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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.