Best Small Business Franchises in the Philippines

Many Filipinos share the dream of becoming an entrepreneur and venturing into franchising business. However, achieving this goal requires a mix of passion, financial commitment, and legal conformity with government and franchisor’s guidelines and protocols.

Despite various challenges, the Filipino economy shows a significant growth in 2024 according to McKinsey analytics (1). Being one of the strongest economies in Southeast Asia, it continues to open new perspectives for small franchise businesses in the country.

For example, one of the major events in the Philippines is the Franchise Asia Philippines 2024 (2). Recognized as Asia’s largest franchise expo, it showcases over 1,000 local and international brands, offering a vast panorama of business opportunities for prospective investors and entrepreneurs.

What is a Franchise Business in the Philippines

Before tapping into the franchise business, let’s define the main terms of franchising.

Franchising in the Philippines is primarily regulated by the Republic Act NO 9178 for Micro Business Enterprises (3) and the Philippine Executive Order 169 Strengthening the Franchising Industry of Micro, Small and Medium Enterprises, which imposes and defines its rules and regulations.

The latter order defines franchising as an arrangement in which a franchisor permits a franchisee to utilize its trademark, trade name, and business methodology in return for fees and royalties.

👉 Franchisor is the entity or company that owns the rights of a business concept, brand or trademark and grants permission to others to operate a business using its brand and business model.

👉 Franchisee is an individual or entity that purchases the rights to operate a business under the franchisor’s brand and system. The franchisee agrees to adhere to the franchisor’s standards, procedures, and guidelines in operating the business.

What are the Types of Franchises?

There are two main types of franchising in the Philippines:

• Product format franchising is similar to the vendor-supplier type of franchising where the supplier gets the right to sell products to other businesses or customers most of the time within a certain area, performing as a distributor in a specific country or countries. In this cooperation, the franchisee run under established standards and quality control procedures and under the franchisor’s brand.
• Business format franchising. In this case, the franchisor gives the franchisee the right to use the trade name, trademark, and established operational procedures for a royalty fee. This type offers a broader relationship between the franchisor and the franchisee, and gives a proven way of doing business as the franchisee gets the whole range of support, training system, marketing strategy, operation’s techniques, and other relevant information.

TOP 10 Small Franchise Businesses in the Philippines

The franchising industry is experiencing a 10% growth in sales in 2024. As per the President of Philippine Franchise Association (PFA) Chris Lim, the franchise growth is expected to be strong as more Filipinos are now aware of franchising as a business concept.

Below is the list of franchise businesses in the Philippines.

Food Carts Franchises

One of the reasons why opening a food cart in the Philippines can be a promising venture is due to the deep love and appreciation that Filipinos have for food. Eating is not just the necessity, but also a social activity and a way to celebrate. Its diverse cuisine varies depending on the region, creating a high demand for various types of cuisine and providing more opportunities for food entrepreneurs.

In case you want to start the franchise in food carts, here you can find the list of small and affordable food carts franchises in the Philippines:

1. Citrus Zone

Franchise details
Type of the Franchise:	Healthy and affordable refreshment options
Initial Franchise fee:	Php 120,000
Capital Investment Cost:	Php 290,000
Format of the Franchise:	Cart

Centered on promoting healthy living and offering nutritious beverages to Filipinos, Citrus Zone quickly became one of the Philippines’ largest chains for healthy beverages and has 90+ outlets across the Philippines.

By choosing ingredients like honey, ginger, and calamansi instead of artificial syrup drinks, Citrus Zone offers a diverse and healthy nutritious beverage selection. The main target of this franchise are the customers looking for a natural and healthy way of life and searching for alternatives to drinks with a lot of sugar.

The business targets the places with the highest traffic like malls and supermarkets where people tend to seek refreshments and quick snacks and can discover a healthier and better way to refill the energy.

Why you should get the Citrus Zone Franchise:

• Brand Recognition
• Innovative Business Model
• Growing market of health oriented people
• Creative approach to business operation

How to apply:

• Go to the Citrus Zone official web page
• Download the brochure on franchise section
• Fill out the franchise inquiry quick sheet
• Book an appointment with the company representative

Contact:
Phone: +63 (02) 8782-7756 / +63 (906) 385 6785
Email: partners@citruszonerefreshment.com

2. Santino’s Supreme Slice

Franchise details
Type of the Franchise:	Budget-Friendly Pizza Slices
Initial Franchise fee:	Php 50,000
Capital Investment Cost:	Php 400,000
Format of the Franchise:	Cart, Kiosk, In-Line

Pizza is universally adored, whether it is topped with pineapple or pepperoni!

This franchise is the Philippine’s Largest Pizza Cart Brand that was launched in October 2012 and grew fast, and now belongs to Jimini Foods Group Philippines a food company that specializes in various pizza brands and other food products. Offering a great support to each franchisee, Santino’s Supreme Slice Pizza aims to bring a Supreme meal at affordable prices to each house in the Philippines.

Why you should get the Santino’s Supreme Slice Pizza Franchise:

• Operate under a Supreme brand
• ROI within 12-15 months
• Target market of consumers from professionals to students and families
• Full access to target locations
• Quick opening approximately within 30-45 days after the payment

How to apply:

• Go to the official web page of Jimini Foods Group and choose Santino’s Supreme Slice Pizza Franchise option
• Download an application
• Download feasibility study form
• Submit Formal Letter of Intent
• Leave your application submission

Contact:
Phone: +63925 511 9444
Email: oFranchiseNOW@jiminifoodsgroup.com

3. Farron Cafe

Franchise details
Type of the Franchise:	Top coffee brand offering the most affordable Frappuccino in the metro!
Initial Franchise fee:	Included in the investment
Capital Investment Cost:	Php 499,000 – Php 879,000
Format of the Franchise:	Alfresco, Cart, Kiosk and Cafe

Farron Cafe is a business idea of a young couple, who loved coffee and wanted to make it accessible for every Filipino. Both believed in the idea that good coffee and those popular frap drinks should be enjoyed by every Filipino, regardless of their social status.

What stands this franchise aside? Farron Cafe isn’t just about the coffee. Farron Cafe is selling experience to their customers that are looking for value for money and don’t want to overpay for expensive drinks. Opened in 2010, this franchise is now serving in more than 300 stores nationwide and more than 100 stores internationally.

Why you should get the Farron Franchise:

• Coffee preparations techniques training
• Business operations manual
• Site visit and guidance from franchisor
• Customer service strategy and assistance
• Location selection assistance
• Professional equipment for all operational needs

How to apply:

• Go to the Farron official web page
• Proceed with evaluation process
• Get approved and proceed with the payment
• Choose the best location
• Get marketing assistance and on-site training

Contact:
Phone: 294-0295
Email: farroncafe@gmail.com

4. EggLuck

Franchise details
Type of the Franchise:	The first Filipino Egg Drop Jeepney franchise!
Initial Franchise fee:	Php 180,000 – Php 250,000
Capital Investment Cost:	Php 500,000+
Format of the Franchise:	Cart, Kiosk, Jeepney

The idea of the EggLuck franchise came with the decision to transform a simple egg into a more versatile meal option for Filipinos. Combining Filipino recipes with new global food trends helped this franchise to create a menu with a variety of egg-based dishes, from classic breakfast like omelets and scrambled eggs to innovative creations like egg waffles, egg sandwiches, and egg bowls.

Another thing that makes this franchise different is that EggLuck offers all-new, all-healthy, all-day breakfast served from their innovative food jeep!

Why you should get the EggLuck Franchise:

• New and innovative food track concept
• Special themed menu
• Flexible location and operations hours
• Lower franchise fees

How to apply:

• Go to the EggLuck official web site and choose Franchise option
• Submit a Letter of Intent and your application
• Have interviewed and get assigned for a Business meeting
• Get approved and obtain assistance for launching

Contact:
Phone: (0947)621-6542
Email: franchise@eggluck.com

5. Bang Bang Bangus

Franchise details
Type of the Franchise:	Flavored Bangus Franchise
Initial Franchise fee:	Php 200,000
Capital Investment Cost:	Php 450,000 – Php 550,000
Format of the Franchise:	Cart, counter type

Bangus – or the traditional milkfish, holds a special place in Filipino cuisine. Aiming to introduce its flavors to a broader audience, the founders of this iconic crispy franchise implemented the menu mixed with classic and innovative dishes, but all made from bangus.

The company’s name “Bang Bang Bangus” originated from the rhythmic sound of Juan tenderizing the fish with a bamboo stick before cooking — a fitting tribute to the labor of love that went into every dish they served. To refine their recipes, they embarked on a journey across the Philippines, immersing themselves in local culinary traditions and learning from skilled cooks and fish farmers.

Aiming to be the preferred and top of mind bangus dish among Filipinos, Bang Bang Bangus offers one of the simplest operations to its franchisees, all their products are coming already in packages. All you need is fry, flavor and serve!

Why you should get the Big Bang Bangus Franchise:

• Fast ROI
• Simple operation (Fly, Flavor and Serve)
• Proved business system
• Initial Inventory
• Support during openning
• Included online adds package

How to apply:

• Go to the Big Bang Bangus official web page
• Sign up to see the company’s presentation
• Leave your details for the company to get back to you
• Go through the company’s application process

Contact:
Phone: 02-7-118-6927
Email: – k77foodcreations@gmail.com

6. Papel na Liempo

Franchise details
Type of the Franchise:	Liempo Chips Franchise
Initial Franchise fee:	Php 100,000
Capital Investment Cost:	Php 450,000
Format of the Franchise:	Cart

Papel na Liempo stands out as a unique fast-casual dining franchise in the Philippines, specializing in liempo (grilled pork belly) wrapped in paper — an innovative and convenient packaging style that sets it apart. The franchise centers its menu on liempo, a beloved Filipino dish, with pork belly undergoing a meticulous marination process with a distinctive blend of spices and herbs before being grilled to perfection, resulting in a flavorful and succulent meal.

Utilizing paper wrapping, Papel na Liempo ensures that its offerings are easy to enjoy on the go, which helps the busy customers to get a quick yet satisfying meal. The packaging not only enhances convenience but also helps retain the liempo’s warmth and juiciness. Affordable prices give access to a wider range of customers, from students to office workers.
The franchise is offering simple and easy operations techniques to its franchisees and plans to expand not only nationwide, but globally in the near future.

Why you should get the Papel na Liempo Franchise:

• Recognized Trademark
• Established customer base
• Proven and successful business model
• Easy operation process

Contact:
Phone.: (0917)148-8434 / (0919)996-6170
Email: papelnaliempo@gmail.com
Facebook web page: https://www.facebook.com/PapelnaLiempo/

7. The Hungry Pita

Franchise details
Type of the Franchise:	Shawarma Franchise
Initial Franchise fee:	Php 200,000
Capital Investment Cost:	Php 428,000 – Php 668,000
Format of the Franchise:	Cart, Kiosk

The Hungry Pita franchise’s main focus is to introduce Filipino cuisine to Mediterranean flavors, making a pita wrap as their signature offer. By blending Mediterranean ingredients with Filipino flavors, this franchise created a unique wrap. To adapt better to local taste, they introduced Filipino sauces and a rice-based menu.

The Hungry Pita expanded through franchising, strategically opening outlets in high-traffic areas like shopping malls, business districts, and near universities. This approach boosted the brand’s customer base and established the brand as a prominent player in the Filipino fast-casual dining scene.

Why you should get the Hungry Pita Franchise:

• Great recipes that add value to your business
• High profit margin
• Great management assistance
• Packages and kiosk with branded uniques designs
• On time stock refill

How to apply:

• Go to the Hungry Pita official web page
• Download and submit an application and Letter of Intent
• Wait for the location approval
• Sign the contract
• Get ready for the grand opening

Contact:
0945-695-2720 / 0917-808-1736 / 0962-529-3471
thehungrypita.sales@gmail.com
Sales and Marketing Representative

8. Caffe LA Tea

Franchise details
Type of the Franchise:	Coffee, Milk and food
Initial Franchise fee:	Php 250,000 – Php 650,000
Capital Investment Cost:	Php 599,000 – Php 4000,000
Format of the Franchise:	Milk Tea Cart, Coffee Cart, Kiosk, Full Cafe

Caffe LA Tea was founded by a group of coffee and tea enthusiasts who were looking to create a distinctive café concept that would appeal to Filipino tastes and offer a cozy space to relax and socialize.

Featuring a diverse selection of beverages, from aromatic coffees and refreshing teas to specialty concoctions infused with unique ingredients, they also offer a fresh and original concept to Filipino citizens.

Being pet-friendly, providing a great quality service and choosing prime locations, Caffe La Tea franchise offers an existing strong community and loyal customer base to their franchisees.

Why you should get Caffe LA Tea Franchise:

• Become a part of the award-winning brand
• Get the target market of consumers ranging from office workers to students and families
• Get access to target locations
• Obtain the best price offers

How to apply:

• Go to the Caffe LA Tea web page
• Download the application form
• Download the feasibility study form
• Submit Formal Letter of Intent
• Leave your application for submission
• Wait to be contacted by company representative

Contact:
Phone: 0998-9600399

Service Franchises

Another big potential and growing demand for franchising resides in service franchises related to kids education and enrichment programs. Investing in service franchises that offer quality educational and recreational activities for kids can help you to tap into this expanding market.

1. SAM

Franchise details
Type of the Franchise:	World’s most successful Maths Program
Initial Franchise fee:	Php 300,000
Capital Investment Cost:	Php 350,000 – Php 800,000
Format of the Franchise:	In line

The story of SAM (Seriously Addictive Mathematics) Math began with a mission to change the way students perceive and learn math. Traditionally, math is seen as a difficult and not interesting subject. With the new approach, the study became fun and effective.

The main belief of this franchise is that every child can succeed in Math with the personal teaching approach. Besides the math skills, the program develops critical thinking, logical reasoning and problem-solving skills.

With 200+ centers in 20+ countries all over the world and several centers in the Philippines, S.A.M Franchise Opportunity is open to all individuals or companies who share a genuine passion for educating young and curious minds.

Why you should get S.A.M Franchise:

• Be the part of the most comprehensive Multi Award-winning Math program
• Minimal initial fees
• Strong training system and support
• Use your investment towards training your staff, marketing, operational needs
• Participate in franchise program development and make your own impact

How to apply:

• Go to the SAM official web page
• Leave your contact details
• Indicate why you are interested in S.A.M Franchise
• Leave a self introduction message
• Wait for the company representative to come back to you

Contact:
Phone: 6284-03-7733, 012-3833218
Email: enquiry@sam.edu.my

2. Bricks 4 Kids

Franchise details
Type of the Franchise:	Children committed franchise that provides exceptional environment for kids
Initial Franchise fee:	Php 280,000
Capital Investment Cost:	Php 566,000 – Php 980,000
Format of the Franchise:	Education Center

The main idea of Bricks 4 Kidz’s franchise is to create a fun and joyful environment for kids to explore the world of Science, Technology, Engineering, and Mathematics (STEM) while they build the LEGO bricks.
Driven by a strong belief in experiential learning, this franchise quickly became the largest STEM education provider for kids. With over 300 branches in 38 countries, they provide strong support for launching every new franchise. The launch process is divided into several steps, and you will be guided through the whole process by their dedicated team.

Why you should get the Bricks 4 Kidz’s Franchise:

• Wide and exclusive territory coverage
• Territory analytics before choosing the spot
• High profit margin
• Easy and assisted operation with proven brand techniques
• 24/7 support from Franchise Team
• Support Team on site visits
• Workshops to keep you updated about the market development

How to apply:

• Go to the Bricks 4 Kidz’s  web page
• Write a letter with your details and region for the new branch
• If approved, you will continue learning about our services and support
• Interview with Franchise Managing Director
• Meet our Team in person
• Get one week operating and teaching techniques training with Bricks 4 Kidz’s professionals

Contact:
Phone: 0977-875-5858
Email: jlin@bricks4kidz.com

5 Best Cheap Franchises in the Philippines

If you’re looking to start a business in the Philippines without breaking the bank, exploring affordable franchise opportunities is a smart choice.
Typically, starting a food cart franchise like Siomai King, Turk’s Shawarma, or Potato Corner can require an investment from Php 150,000 to Php 600,000. This includes costs for the franchise fee, cart setup, initial inventory, and other operational equipment.

Here’s a rundown of some popular, budget-friendly franchises in the Philippines:

1. Go! Ginataan

Go! Ginataan Franchise details
Type of the Franchise:	Ginataan Snack Franchise
Initial Franchise fee:	Php 50,000
Capital Investment Cost:	Php 50,000 – Php 349,000
Format of the Franchise:	Distributor, Cart, Kiosk, Counter

Go! Ginataan offers a range of dishes inspired by traditional Filipino cuisine, concentrating specifically on dishes made with coconut milk (ginataan). The experience in Go Ginataan takes their customers back to their childhood where they could enjoy their home-made ulam and desserts, mostly made with coconut milk.

Every Pinoy deserves to have the best Ginataan experience! And this franchisee was able to convert the love of Filipinos for the unique taste of home in a successful business where you will get all necessary support from trusted and beloved brand.

Why you should get the Go! Ginataan Franchise:

• Be the part of famous dessert shop
• Company’s business model
• Unique preparation techniques
• Easy operations model
• Assistance during launching

How to apply:

• Go to the official Facebook web page
• Get in touch with the company representative
• Prepare all the necessary information for the approval
• Go through training with the company
• Get needed support for launching

Contact:
Email: goginataan@gmail.com

2. Pepa Wings

Pepa Wings Franchise details
Type of the Franchise:	Chicken Wings Franchise
Initial Franchise fee:	Php 200,000 – Php 250,000
Capital Investment Cost:	Php 308,000 – Php 860,000
Format of the Franchise:	Cart, Stall, Counter

A successful franchise that initially started as a food cart, selling at bazaars and small food courts, but did achieve great results due to its high quality product and dedication. Chicken wings have always been one of the favorite choices of each Filipino and due to high demand this franchise never stopped growing since 2017.

The franchise focuses not only on quality food, but also reasonable prices and excellent service in more than 50 franchise outlets nationwide. The brand already has its big fan community and offers great support to their loyal customers.

Why you should get the Pepa Wings Franchise:

• Become the part of the franchise loved by every Pinoy
• High Profitability
• Fast ROI
• Access to uniques recipes
• Training before launching

How to apply:

• Go to the Pepa Wings official web site
• Leave the inquiry with your details
• Indicate the reasons to become Pepa Wings franchisee
• Pass the selection process
• Go through the training with the company
• Launch your franchisee and get the support

Contact:
Email: franchise@pepawings.com

3. The 12C4Bread Station

12C4Bread Station Franchise details
Franchise type:	Bake Shop Franchise
Franchise fee:	Php 100,000
Franchise Investment:	Php 500,000 – Php 900,000
Franchise format:	Kiosk, Counter

It’s an essential franchise concept that every Filipino needs in their neighborhood. Founded with a clear purpose, Bread Station aims to bring warm, freshly baked bread at affordable prices to every family in the Philippines. Offering a great range of products, Bread Station’s menu features classics like soft and fluffy pandesal, ensaymada and pan de coco with its creamy filling.

Started as a stand kiosk, their popularity grew fast due to their high standards for quality products and customer attention! With five branches nationwide, the Bread Station keeps growing and satisfying the cravings for fresh bread of every Filipino.

Why you should get the Bread Station Franchise:

• Bakery forms the top 5 most visited places in the Philippines
• Guided start-up business
• Site evaluation and selection
• Extensive Staff Training
• Field operational visits

How to apply:

• Go to the 12C-4-Bread-Station-1000 Facebook page
• Get in touch with the company representative
• Inquire about your franchise options
• Prepare the documents needed for becoming a franchisee
• Pass the training and prepare for the grand opening

Contact:
Phone: 09171620334 / 0287222412

4. Kamir Shawarma

Kamir Shawarma Franchise details
Franchise type:	Middle Eastern Cuisine in the Filipino market
Franchise fee:	Php 100,000
Franchise Investment:	Php 700,000 – Php 1500,000
Franchise format:	Cart, Kiosk, In line

Kamir Shawarma is one of the best franchises in the Philippines that brings authentic Middle Eastern flavors to each Pinoy. Known for its 12-inch shawarma, this franchise offers a variety of options including rice meals, flavored fries, and party boxes, delivering a satisfying customer experience.

Great quality products, traditional coocking methods and positive customer feedback and affordable prices help Kamir Shawarma keep expanding and boasting more branches in the Philippines.

Why you should get the Kamir Shawarma Franchise:

• First company with authentic 12-inch shawarma in the Philippines
• Established excellent reputation
• Efficient supply chain
• Prime selection of locations
• Maximum customers traffic
• High revenue potential

How to apply:

• Go to the Kamir Shawarma Facebook  or or fill out the form online here
• Get in touch with the managers of the company
• Apply for the franchising and prepare all the documents
• Participate in the training, provided by the company

Contact:
Phone: 099-1736-7362
Email: kamirphofficial@gmail.com

5. Bunny Banana

Bunny Banana Franchise details
Franchise type:	Healthy habits with nutritious snacks!
Franchise fee:	No fee
Franchise Investment:	Php 550,000 – Php 650,000
Franchise format:	Cart, Kiosk

Go bananas with this unique franchise concept! Bunny Banana offers a variety of fresh banana treats like banana splits, chocolate-dipped bananas, banana pancakes, banana ice cream, and pastries.

Located in a popular food area, the franchise quickly gained attention with its unique concept and fun branding. Featuring a bunny mascot and colorful decor, it appeals to families, children, and youngsters. Besides asking from a set menu, customers can personalize their choice with various toppings, sauces, and add-ons.
Being the second brand of Kitchen 77 Food Creations Inc. – the company that stands behind Bang Bang Bangus, Funny Banana offers access to all the business systems set up for future franchisees.

Why you should get the Bunny Banana Franchise:

• Business systems professional set up
• Company ingredients and recipes
• Attractive and interactive design and uniform
• Provision of inventory
• Equipment installation
• Support during the operation

How to apply:

• Go to the Bunny Banana official web site
• Choose the franchise package
• Learn more from the company’s presentation
• Choose your area of interest
• Leave your details for future communication with the company

Contact:
Phone: 02-71186927
Email: franchise.bunnybanana@gmail.com

Franchising Requirements in the Philippines

The franchising requirements can be found in the Executive Order (EO) 169 signed in 2022. [4] The main purpose is to establish competitive conditions for micro, small, and medium-sized enterprises (MSMEs) engaging in franchising in the Philippines. This EO outlines the terms and conditions governing franchise agreements with MSME franchisees in the country.

Although some specifics may differ based on the nature of the franchise, the common requirements to ensure compliance with legal standards and successful business operations are:

• Research and evaluation:

Filipinos interested in franchising should firstly conduct extensive research to discover the business that suits their interests, abilities, and financial situation. This entails assessing the reputation of the franchisor, the demand for their offerings, and the potential profitability of the franchise.

• Financial means:

Franchisees need to have the financial capacity to invest in the franchise, including the initial franchise fee, startup costs, and ongoing operational expenses. The franchisor may also require proof of financial stability and the ability to secure financing if needed.

• Legal and regulatory obligations:

Franchisees must follow the legal and regulatory requirements mandated by the Philippine government and the Philippine Franchise Association (PFA). That includes registration with the Securities Exchange Commission(SEC), obtaining business permits from the Local Government Unit(LGU), registration with the Department of Trade (DTI) and other necessary actions to operate the franchise legally. [4]

• Execution of franchise agreement:

The agreement typically covers operational guidelines, mechanism to resolve disputes, recurring fees, and intellectual property rights.

• Marketing and promotion strategies:

Franchisees usually handle the execution of local marketing and promotional efforts to drive customer traffic to their franchise outlet. The franchisor may offer marketing materials, advertising support, and guidance on successful marketing strategies.

• Training and support programs:

To gain insights into business operations, customer service standards, and other crucial aspects, franchisees are often required to undergo training provided by the franchisor.

How to Apply for a Franchise Business

As soon as you did the thorough research and secured the funding, the steps to follow would be:

1. Submit the application to the franchisor. After you conducted the proper research and have chosen the franchise that suits you the best, express your interest to the franchisor. Most of them have a special dedicated section where you can leave your inquiry.
2. Take part in an interview. Be ready that the franchisor may arrange an interview or a meeting, to ensure your sustainability as a franchisee and evaluate your financial funds and business expertise. This is a good option to meet each other and evaluate the potential of your future mutual collaboration.
3. Sign the franchise agreement. By signing a franchise agreement, you will define the terms and conditions of the relationship with your franchisor.
4. Start training and set up the business. Familiarize yourself with the brand, products or services, operations, and standards. Secure a suitable location for the franchise, obtaining necessary permits and licenses, designing and outfitting the physical space according to the franchisor’s specifications, and acquiring equipment, inventory, and supplies. Franchisees work closely with the franchisor to ensure that the setup aligns with the brand’s image, standards, and requirements
5. Launch your project. After completing the setup, officially launch your franchise business. Adhere to franchisor guidelines for business operations and customer service.
6. Receive ongoing support from the franchisor, including marketing assistance, operational guidance, and product/service updates.

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Benefits of Franchising

Among the advantages of any franchising model, you can find the following:

✅ Brand recognition. This can be a crucial point for a new ambassador as it enhances the business visibility, helps to gain more market presence and consumer trust, and as a result boosts the revenue. Each new location contributes to brand recognition for both franchisor and franchisee.

✅ Established business model. Franchise agreements include comprehensive operational guidelines and training programs, ensuring consistency in products, services, and customer experiences across all locations. This mitigates the risk related to starting a new venture from scratch.

✅ Economies of scale. Franchisees benefit from the franchisor’s collective buying power that allows franchisees to access goods, supplies, and services at lower costs, improving profit margins and competitiveness.

✅ Marketing support. Franchisees benefit from centralized marketing and advertising campaigns organized by the franchisor. This includes national or regional advertising initiatives, promotional materials, and marketing strategies designed to drive customer traffic and sales to franchise locations.

Downsides of Franchising:

Certainly, there are some risks associated with franchising

• Dependence on a franchisor. One of the main points to consider is that you as a franchisee will rely heavily on the franchisor for support, training, marketing, and operational guidance. If the franchisor fails to provide support in a timely manner or encounters financial difficulties, it can negatively impact your business as well.
• Ongoing fees and royalties. In case you are the one who encounters any financial difficulties or a low season, you need to make sure that you have it factored in the budget. Ongoing regular fees and royalties are to be paid to the franchisor regardless of any challenges you may encounter.
• Territorial restrictions. Franchise agreements often include territorial restrictions or non-compete clauses that limit franchisees’ ability to expand or operate in certain geographic areas. This can input additional limitations on growth opportunities and market outreach.
• Renewal and termination. Franchise agreements typically include provisions for renewal and termination. Franchisees may face challenges renewing their agreement or may be subject to termination if they fail to meet performance standards or breach the terms of the agreement.

Conclusion

The Philippines is famous not only for being one of the strongest economies in Southeast Asia, but also for its innovative consumers (2). Around 70% of the GDP (Gross Domestic Product) is driven by consumption. Filipino consumers tend to be open to trying new things, appreciating quality products and services, and seeking value for money.

Franchising provides entrepreneurs with a special opportunity to fulfill these needs by a recognized brand and a proven framework.

Investigating about the optimal small franchise opportunity? Begin by crafting your business plan, securing the required funds, choosing the spot, recruiting staff, and promoting your small franchise business.

And remember, if you need urgent money for any needs, you can get a fast loan in Digido quickly and without paperwork hassles.

Apply now

Learn more interesting articles:
✦ 25 Best Side Hustles in the Philippines
✦ The 20 Most Profitable Small Businesses you can Start in the Philippines
✦ Profitable Service Business Examples in the Philippines

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