The Philippines is expected to become an Asian hub for franchising, considering its deep pool of franchise executives and the abundance here of unique business models, according to the Philippine Franchisers Association (PFA).
The PFA said new franchise concepts would emerge in the region as countries gear toward free market economies.
It said franchising had become the most popular strategy for growing a business as it offered new business owners the best possible chance of succeeding with the least risk.
Samie Lim, PFA chairman emeritus, said the number of franchise concepts had grown about eight times to 993 this year from 111 in 1992.
Lim was speaking at Wednesday’s opening of the two-day 15th Philippine International Franchise Conference being held in Makati City.
“Locally developed franchise concepts have grown at an amazing rate, averaging 23 percent yearly,” Lim said. “Many of these local franchises have been so successful and perhaps very competitive that they have displaced a not-so-insignificant number of foreign franchise concepts,” he added.
In Southeast Asia, Lim said, the Philippines has the highest number of franchises despite its low per capita gross domestic product of $1,300.
Regional economic leader Singapore, which has 20 times per capita income, has less than half the number at 420. In Indonesia there are 425 franchises; Thailand, 375, and Malaysia 305.
“Perhaps a large and growing population and a growing economy are the foundations for the sustained development of franchising in the country,” Lim said.