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Franchising Remains a Good Business Venture

The Philippine franchising industry flourished in 2008 and is expected to stay strong despite the global economic crisis, an informal survey among members of the Philippine Franchising Association (PFA) showed.

Respondents revealed that sales growth last year was at an average of 10 percent. Notably, the survey said a certain pizza company, which has just begun its franchising operations, posted a leap of 50 percent in sales last year.

“Franchising has always been the better investment option because of a proven business formula. With over 90 percent success rate, it has evolved as a business model primarily identified with minimal risk,” PFA chair emeritus Samie Lim said.

With this positive outlook, Department of Trade and Industry (DTI)-Southern Mindanao regional director Marizon S. Loreto said the franchising business can be seen as an opportunity where jobs will be generated from.

“Considering the number of OFWs (overseas Filipino workers) who have come home due to the economic meltdown being experienced worldwide, this particular industry can be an option for them to have a new source of income,” Loreto said.

Loreto said the returning OFWs are among the best prospects to become franchise investors since most of them have the needed capitalization. Furthermore, these OFWs are disciplined workers because of the working environment which they are used to.

“A number of businesses have been enlisted for franchising. The DTI can assist interested OFWs in starting their chosen franchise business,” she said.

Cognizant to this, DTI is preparing for a franchising expo and seminar next month, which may serve as a venue where franchisors and potential franchisees will converge and discuss possible business ties. This can likewise be an opportunity for potential franchisees to acquire relevant knowledge in handling a business like this.

“DTI 11 is presently doing the necessary preparations and planning. We are also coordinating with other agencies and business organizations which can probably help us in the successful conduct of the said activity,” Loreto said.

source: www.sunstar.com.ph

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