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Franchising in the Philippines, How Do We Fare?

Franchising in the more developed countries such as US, Canada and Europe is more advanced and mature than the Philippines and even other Asian countries in terms of the number of service activities where franchising thrives. In the US, franchising has been adopted in almost every type of service activity. It has revolutionized their service economy. These industries include retail, tax services, painting services, transportation services, water conditioning and weight control, credit reporting services, garden and agricultural, security systems and sign products and services.

The Philippines is an emerging market. Our country has about over 530 foreign operators in food and non-food ventures. Compare this to the US (3,000 franchises), Canada (900 franchises) and Japan (around 700).

Franchise sales in mature markets such as the United States are estimated at US$800 billion or more than 40% of the $2 trillion retail sales generated in 1997. In the Philippines, franchise sales account for only 5 to 10% of all retail sales. This is an indication that Philippine franchising still has a long way to go before it can be considered mature.


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