What made franchising a popular trend in the Philippines? Franchise businesses, such as food-cart and food-stall businesses, had gained a lot of popularity and demand in the Philippines. The reason why is because of the opportunity for Filipinos to start a successful business, while it also serves as a popular solution to poverty by the government.

Franchising Industry in the Philippines
According to the PFA, or the Philippine Franchise Association, the franchising industry of the Philippines had grown immensely since the start of small Franchising business Philippines, such as food-cart and food-stall businesses.

In a report by the PFA, the number of franchises in the country had grown from only over 50 in the 1990s, to over a thousand since 2009, and it kept growing even today.

Its growth was a major milestone in the franchise industry of the Philippines, and the government had also seen its potential as a solution to the growing problem of poverty in the Philippines. A popular application of franchise business by the government is when OFWs from Libya had fled the country to return home.

Because most of them doesn”t have any work in the Philippines, the government had gave them a free business management course on how to manage a small business, particularly managing a franchise business such as a food-cart or food-stall business.

In addition to that, another contribution that the franchise industry of the Philippines had given to its economic growth is by providing Filipinos with more jobs. According to the PFA, the growth of the franchise industry of the Philippines had created thousands of enterprises which generated hundreds of thousands of jobs, making franchising an important tool in the country”s economic growth.

Accomplishments for the Philippines
The growth of the franchise industry of the Philippines had also garnered a number of recognition for the Philippines in the world market.

According to the PFA, the growth of franchise business in the Philippines had recognized the Philippines as the “franchise hub of Asia” when it comes to the development of franchise concepts. This had also allowed entry into the international market of Filipino brands and concepts.

These and other achievements have made franchising the preferred business method for more and more entrepreneurs “” both aspiring and established.

If you have set your mind for franchising your business then you have taken right decision as franchising the existing business is the fastest way of expansion. It is a natural and fast method for growing business. The next thing that you want is to do it properly as small mistakes can lead you in big trouble in future. Try to counsel it with experts before deciding anything.

Franchising a unique way of business expansion as here you partner your existing business with someone else. You sell your business and strategies to new business owner. This requires utmost care and discipline. You should be clear on everything whether it’s your expansion plan, business strategies or future plans. You should be clear at every point. An experienced franchise consultant can help you and show you the right way to do the things. They can assist you in many ways like creating operations and other franchise manuals, solving different questions that generally come on when you go for franchising, making your attorney and planning franchise system and many more.

There are many franchise consultant out in the market but do go for anyone offering you to open your franchise. There are many people who just managed to add the company name in their client list to as they have done franchise work for them but have little knowledge. So decide your consultant wisely. Always try to cross check his knowledge by asking few questions and give your contact to him once you are satisfied.

Having a franchise is a great way to start a business, without having to worry about coming up with your own business model. When you have a franchise, you have the convenience of having an established and recognized brand to develop, plus the support of a head office that will help you succeed. The key to your success is to pick one of the best franchises to own so you can have a business that is sure to succeed.

Cartridge World is one of the best franchises to own and has one of the lowest amounts of money needed to get stated. With a starting liquid capital of only $30,000, you can be on your way to supplying customers with ink refills for their home computer printers. Because it costs much less to have an ink cartridge refilled than to buy a brand new one, more and more people are turning to this as a practical and economical way to get their printing needs done. Another one of the best franchises to own is Dollar Store Services. With a liquid capital requirement of only $50,000, you can be on your way to owning a business that is sure to draw huge crowds in any neighborhood, regardless of the type of economy the country is in.

The convenience store 7-Eleven is another one of the best franchises to own. With the wide number of products it offers, plus the added income from the food service section of the store, a well located store can generate thousands of dollars in income for you. The start up costs are quite high, since you will need about $100,000 to $160,000 in capital, but this can be easily recovered in a few years. Everyone loves to eat and so it makes sense that if you want to start a business, choose one of the best franchises to own that serve food. Whether you want to have a juice bar or a fast food joint, having a restaurant franchise can help you become an entrepreneur and help cater to the demands of your neighborhood.

On the top of the list of best franchises to own that serve food is McDonalds. This fast food chain has served over a billion customers and to this day continues to be very competitive in the fast food market. With new offerings every year and classic menu items that remain popular with the fans. McDonalds has high recognition and brand value. It does require a huge capital startup, reaching upwards from a million dollars, but you can be sure that you’ll get it back within a few years.

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A franchisee must be a sound business person. Even if its about food or cosmetics for a franchise to be a success it is important for the franchisee to have sound business sense and keep the franchise on track.

There are many aspects to running a franchise and the success of a franchise can be assured if mistakes are avoided.

According to people in the industry the most common causes of failure of a franchise business are:

1. Signing a contract without legal counsel or understanding the fine print. It is important to comprehend clearly what clauses 1-23 of the Uniform Franchise Offering Circular or UFOC mean. Be smart read the document and make a list of questions you want answers to. Ensure you are in agreement with everything before you sign and use any negotiation skills you have to your advantage. A franchise business must benefit both franchisor and franchisee.

2. Not doing the foot work to determine whether the franchise has any chance of success or not. Find out all about successes and failures. Ask about litigations and more. Make the effort to contact other running franchisees and ask about problems encountered. Get a clear picture.

3. Miscalculating finances. New franchises need capital to set up things and get the business moving. These include finding allocation, refurbishment, equipment costs, salaries, training, promos and more. When planning finances its important to think of the impossible and include costs of insurance and more.

4. Taking an unviable business loan. Very often its not a good idea to take the first loan offered. There is a need to think of returns, interest, pay back tenure and more. Use expert help to get the best support at the lowest costs. Often paying for a good consultant will save thousands of dollars later.

5. Failing to build a rapport with the franchisor and his /her key personnel. For a franchise to work you need a good relationship with everyone; the sales people, the field representative, the district supervisor, the marketing people and others who hold a franchise of the same franchisor as you. If your instinct tells you there is not much substance below the surface, avoid the business.

6. Analyzing business potential and entering an already saturated market. Study the lay of the land and also find out whether there is a need for your kind of business in the location specified by you. Success needs potential and uniqueness. Being one of many in a small area waters down possibilities of profit.

7. Taking into consideration personal aspects like health and family responsibilities. It is important to know you can burn the candle at both ends until the franchise runs well. You have people you can depend on and are in good health. Thinking the unthinkable makes sound business sense.

8. Ignoring clauses in the contract that refer to breaking the contract etc. pay attention to each and every aspect; consider what will happen to the franchisee if you are hospitalized or die.

9. Taking up a business on an impulse without requisite skills. It is crucial to know whether franchising is for you. A business needs long term commitment and cannot be abandoned on a whim.

10. Not creating a sound business plan. To avoid losses its important to monitor the business from day 1.MIS systems will help nip problems in the bud. Close monitoring and staying ahead of competition are required 24/7.

Use resources provided by the World Wide Web to educate yourself on the franchising business secrets and work models. Be determined to be a pro franchisee.

Putting one’s hard-earned money into a profitable investment is something that most people want to do. However, with the various investment vehicles today, a lot of us are at a loss of which is the right one to invest in. Having a business is a popular option when it comes to investments; however, starting one from scratch takes a lot of effort, time, and money. This is the reason why people who are keen to having their own businesses prefer to go for franchising opportunities instead of starting their own personal line of trade.

In a country like the Philippines where you cannot really tell how a start-up business will prosper after a few years, it is logical to go for something that has a recall with the public. This is the advantage that franchising has over new businesses. The fact that branding is what attracts a customer’s loyalty makes it easier for a franchise owner to maximize his returns.

However, it is important to note that while franchising is a popular way to have a business, it is something that cannot be done by just about anyone because it has its limits. When you franchise a brand name, you are limited to selling it the way the original owners of the franchise do, so if you crave control and dynamism to do whatever you want with your business then franchising may not be the best type of business for you.

On the other hand, if you only have a limited experience with business yet are amenable to follow the established system of the franchisor, then choosing to have a franchise will work to your advantage. One can indeed say that franchising is a path with low risk and a high potential return.

So, how does one start a franchise business in the Philippines? Firstly, you have to identify a brand name that sells. Remember it is very tough to maintain a position in the market but having a brand name that people trust gives you a competitive edge. The name of the franchisor itself is the biggest kind of advertisement you can give for your business so choose wisely. You also need to have interest in the particular business you want to franchise because once you start operating it, it will be on your mind 24/7. Bear in mind that it takes a great amount of passion to get the business running.

Once you know the kind of franchise business you want to invest in, the next step you have to take is to find a franchisor you want to strike a deal with. You can consult online franchising directories or local franchising magazines for information regarding the franchise opportunities in your area.

Lastly, before signing any agreement with the franchisor, make sure that you negotiate and understand all the terms regarding the franchise. You can even present your own business plan on how you plan to help the franchisor by improving your franchise outlet.

These are the general steps on how to start a franchise business in the Philippines. The success of a franchise outlet starts with a simple choice of getting the right kind of branding recall. Therefore, when you think of franchising, make sure that you put a lot of thought into this step more than anything else.