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Franchising Sector Contributes 5% of Philippines’ GDP

The Philippine franchising sector continues to be an important driver of economic growth and productivity, according to a study undertaken by the Philippine Franchise Association in collaboration with the University of Asia and the Pacific.

The study, taking into account the nominal GDP growth rate of country, showed that the franchising sector had accounted for 5 percent of the country’s total Gross Domestic Product (GDP) for 2005 to 2007, contributing about P106.75 billion to the economy.

It also showed that the sector had created an estimated 200,000 franchise outlets, generating four to five jobs per outlet or almost a million jobs nationwide. The sector has effectively promoted economic dispersal based on the franchise outlets’ locations, it added.

While the bulk is still located in the National Capital Region, the Central Luzon and Southern Tagalog regions in Luzon are not far behind. Region VII or Western Visayas and Region X or Northern Mindanao top the list in the Vis-min area.

“This is because most of the market is still in Metro Manila,” said Bing Limjoco, PFA chair.

“This doesn’t mean, however, that the success of franchising is confined in the capital alone,” she added.


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