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

Franchise Hotline : (+632) 8638.3149 to 50

Join “HOW TO FRANCHISE YOUR BUSINESS” Seminar 2016!

 

Franchise Consultant, How to Franchise your business, Franchise Seminar, Business Franchise Guide

HOW TO FRANCHISE YOUR BUSINESS SEMINAR 2016:

  • Apr 13 (Ortigas Center)
  • May 18 (Alabang)

Every journey begins with a single step – and for entrepreneurs looking to become the “Next Big Thing”, that first step is Francorp’s exclusive “Franchise Your Business” seminar. Francorp’s seminar is set in two parts. The first serves as an introduction to the franchising model of business expansion, and will answer the basic and most important questions like what franchising is and the pros and cons of turning your business into a franchise, how to franchise your business and how to create a franchise business. The second introduces the advantages of franchising and what you need to know before you franchise. Both talks are comprehensive, in-depth, and feature concrete examples of businesses from both here and abroad.

Delivered by the top franchise experts, respected franchise consultants and certified franchise executives in the country, Francorp’s “How to Franchise Your Business” seminar is an invaluable investment for anyone looking to expand their business through franchising. In addition, seminar attendees are invited to a one-on-one business consultation after the event with Francorp’s business consultants. The consultation is for free, and serves as an opportunity for you to get real franchising advice for your business from the industry experts.

Francorp’s clients include some of the country’s biggest brands in food, retail, and services, who have become the benchmark that other businesses aspire to reach. But they all started small. So what are you waiting for? Take the first step towards the road to ultimate franchise success and register for Francorp’s “How to Franchise Your Business” Seminar now!

 

 

 

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Franchising Continues To Grow New Industries

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.

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Emerging Trends in Franchising

By Sam Christopher Lim
Senior Vice President, Francorp Philippines

The secret to choosing a good franchise is finding businesses that are in sunrise industries. But choosing industries that are addressing long term trends and needs and not just short term fads is challenging even for the most experienced entrepreneurs.
From interviews with Samie Lim, the Father of Philippine Franchising, who correctly predicted the growth of franchising in the Philippines 20 years ago, and discussions with other entrepreneurs both locally and internationally, here are 3 trends that will shape the Philippine franchise market:

    1. Increased demand for work-life balance
      Keywords related to home – based businesses get over 17,000 searches monthly on Google, and it continues to rise. With more people looking for work-life balance, most have started to look for businesses they can start and run from inside their homes. This trend has already taken markets like Europe by storm where franchise shows have seen an increase in home – based franchises businesses. Companies such as Tutor Doctor from the US and Crest Clean from New Zealand are just some great opportunities that allow entrepreneurs to start a business, while being in the comfort of your own home.
    1. The rise of Retirement Resorts
      Aging is a fact of life. The stigma of retirement homes as pseudo prisons is now changing with the entry of retirement resorts around the Philippines. Here, parents and grandparents can relax and enjoy socializing with peers while getting the best medical care, should they need it. Retirement resorts such as Life Care from Cebu have been an early player in this segment.
  1. Tourism Boom requiring new services and workers
    With the Philippine targeting to double tourists to 10M by 2016, and the Philippines having some of the best tourist spots around the world, we can expect more tourism dollars coming into the country. With this, there will be in increased need for tourism infrastructure such as good quality branded hotels that deliver value and reliable service across the country. In addition, tourism schools such as the Canadian Tourism & Hospitality Institute have started to use international standard curriculums to train more and more tourism professionals to prepare for the influx of tourists.

Buying a franchise can be a very profitable investment, but it’s important to choose businesses that will benefit from long term trends in the country. This will assure you that your franchise business will be profitable for decades to come.

Franchise Talk is a content partnership of ABS-CBNNews.com with Francorp Philippines. For more on franchising, contact Sam Christopher Lim at franchisetalk.ph@gmail.com or visit www.francorp.com.ph
About the author:
Sam Christopher Lim is the Senior Vice-President for marketing & strategy at Francorp Philippines. He has over a decade of global marketing experience from Bangkok, Shanghai and most recently London. He is a multi-awarded marketer who graduated with distinction from Oxford University and was awarded with the Young Market Masters award. He is also currently Chair for ASEAN integration for the Philippine Franchise Association.

 

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