WHILE franchising has become a trend in the local business climate, an official of a consultancy firm is warning Filipinos against companies that offer very low franchise fees and those without credible consultants.
“It’s a must to check the credentials of the franchisor before buying a franchise,”said Rudolf Anton Kotik, president of RK Franchise Consultancy (RKFC).
Kotik is a senior franchise consultant with 28 years of franchise management experience.
He said prospective franchisees have to investigate companies offering franchise businesses by looking into the nature of the business, its history, the people behind it and other relevant information.
“Or take the risk of loosing your money,” he said during a press conference last Tuesday.
“Some food carts, like those offering P10,000 to P20,000, may just be a scam,” Kotik said.
While he has not heard of any franchise scams in Cebu, he said it is better to be wary than suffer the consequence.
He also advised investors to look into whether the company is properly managed, and if the quality of its products is maintained despite the growth of its franchisees.
“Some companies have family members as franchisees and sometimes that creates a problem,” he said, adding that this is why franchisors need to hire professional consultants to make them become “more credible.”
He is urging prospective investors to participate in franchising seminars and expos, such as the 8th Cebu Franchise Expo to be held tomorrow at the SM City Cebu Trade Hall.
“It aims to enlighten Cebuanos about franchising and links them to franchise companies should they decide to venture into the business,” Kotik said, adding that the expo has offered more than 200 franchise opportunities in the last seven years.
The three-day franchise will be held in cooperation with RKFC and the Filipino International Franchise Association.