For a long time, franchising has been a popular and lucrative endeavor for Filipino entrepreneurs. Not only is it a tried and tested business model, it also provides brand recognition without the need to work too hard for it. If you’re interested in franchising, then you’ve come to the right place!
Read on to find the most promising franchise opportunities in the Philippines and which industries you need to keep an eye on. We’ll also help you understand the benefits and challenges that come with franchising, allowing you to make informed decisions in your future endeavors.
A Few Industries That Are the Best for Franchising
Food and Beverage
Ever since the concept of franchising became popular amongst Filipinos, the food industry has always been the go-to for anyone seeking to dip into this business venture. Thanks to every Filipino’s love for food and eating, this industry will most definitely keep growing during the coming years.
Jollibee
Jollibee is the Philippines’ very own fast-food restaurant, beloved by both children and adults alike. That’s why it isn’t a surprise that it remains one of the most profitable franchise businesses in the Philippines for aspiring businessmen. With its popularity already established, you won’t even have to start the entire marketing process from scratch! The investment requirement for a Jollibee restaurant ranges from 35 to 55 million PHP, depending on the size of the store and its facilities.
McDonald’s
Another famous fast-food joint in the Philippines is McDonald’s. With its catchy “Love ko ‘to” slogan, “McDo” appeals to Filipinos from all walks of life even if it’s a foreign brand. Similar to Jollibee, McDonald’s investment requirement will be pricey, starting at around 30 million Php. This amount will cover a lot of what you’ll need to start out, like construction and design, equipment, furniture, and other government-mandated requirements.
Potato Corner
Potato Corner is a well-known shop that sells fries in a variety of flavors. It’s also a popular choice for first-time franchisees who are looking for a safe and relatively cheap alternative to investing in full restaurants. The franchise fees for Potato Corner start out at 325,000 Php and can go as high as 550,000 Php.
Retail and Convenience Stores
The retail industry, as the name implies, covers all retail and convenience stores. What most people don’t know is that it also covers specialty shops like bakeries, bookstores, florists, and hobby shops. Since these types of stores often sell day-to-day staples, they often never run out of customers, even if it’s just the occasionally curious window-shopper.
7-Eleven
Whether you’re walking, commuting, or driving around, chances are you’ve already seen its green, orange, and red signs. It’s where both students and professionals go to purchase their meals, snacks, and even daily necessities, so you won’t be lacking in customers if you decide to invest in this franchise in the Philippines. Depending on the size of the store you’ve chosen, investment costs range from 3.5 to 5 million Php.
FamilyMart
Japan’s second-largest convenience store chain, FamilyMart became popular with Filipinos thanks to the unique products it offers and the homey atmosphere its stores provide. A FamilyMart store can cost you 4 to 6 million Php.
Uncle John’s
Formerly known as Ministop, Uncle John’s stores provide sandwiches, rice meals, and its popular fried chicken that many people love. The initial investment cost for an Uncle John’s is around 3.8 million Php.
Healthy, Beauty, and Wellness
Health, beauty, and wellness are essential for people to lead long, meaningful lives. That’s why plenty of customers are flocking to gyms, beauty salons, and spas. Investing in this industry may be considered a risk, but they tend to do well once they’ve established their own customer base.
Anytime Fitness
Known for being open 24/7, this gym has become a popular choice for individuals who work all throughout the day or prefer to just be out and about during nighttime. The initial investment for opening an Anytime Fitness in the Philippines will range from 7 to 15 million Php, depending on the size of the gym itself.
Gold’s Gym
A long-standing gym with plenty of history, Gold’s Gym is a common sight for people who are often moving around Metro Manila and its surrounding areas. A franchise investment for this gym will cost you around 5 to 30 million Php, depending on its location and size.
Lay Bare
Lay Bare is a premier waxing expert in the Philippines. This brand is popular with people who are seeking waxing solutions and products that contain no harmful chemicals. In order to have a Lay Bare franchise, you’ll need a minimum investment of 5 million Php that is sustainable for at least three years.
How to Find the Best Franchise in the Philippines for Your Needs?
With the number of possible franchise partners in the Philippines,it can be daunting to find the right one for you. Here are a few steps you’ll need to consider before investing in a franchise business:
Assess Your Skills and Interests
Investing in a franchise in the Philippines requires commitment, so choosing a business that aligns with your interests, expertise, and passion will no doubt increase the likelihood of you succeeding. It’ll also help you solve problems more efficiently if you’re already knowledgeable in how an industry’s gears turn.
Do Your Research
As we’ve mentioned earlier, there are many different industries for franchising, and you’ll need to conduct research on marketing trends and fluctuations. This will help you determine if the industry you’re aiming for is sustainable and will perform well when put into practice.
Determine Your Budget
Investing in a franchise requires a great deal of capital, and the amount you’ll pay depends on its brand as well as the size and location of your store. Besides the initial franchise fee, you’ll also need to consider the equipment and appliances you’ll be using, staff salaries and training, and rent and utilities.
Prepare a Business Plan
Most franchise deals come with an already-established business model, especially if you’re partnered with a larger company. Despite this, it’s still important to have your own business model where your goals are outlined. It can also include any marketing strategies, projected expenses, and expected profits. All these will keep you organized, yes, but they’ll also help you in your decision-making process in the future.
Ensure Legal and Regulatory Compliance
A very important thing to remember before launching your franchise is to ensure that everything complies with every legal and regulatory requirement. Secure necessary permits and licenses, comply with tax regulations, and register with the appropriate government bodies. Not only will these steps avoid penalties, but they’ll also help you avoid disruptions and shutdowns.
Commit to Your Decision
As with most investments, owning a franchise will require patience, hard work, and most of all, dedication. After spending a lot in fees, it may take you a while before you see any returns and profits. Stay proactive, closely manage your operations, and ensure everything’s in top shape.
Discover the Ins and Outs of Franchising in the Philippines
For many savvy businesspeople, franchising is a very tempting investment thanks to its proven business models and the established brand names attached to it. However, knowing how to manage the franchise is a different challenge in itself. Explore our website at Franchise.ph and discover how our expertise can help you find the best franchise in the Philippines for you!
