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45% Growth Seen on the Franchising Industry

The franchising frenzy is on once again in the Philippines, with the industry predicting at least a 45-percent growth this year as more Filipinos seek franchising opportunities to survive the crisis.

Armando Bartolome, president of GMB Franchise Developers and considered as Philippine franchising guru, said strong growths will be registered both in the number of existing firms that will open their business concepts to franchisees, as well as in the number of franchised outlets.

“The industry will be at its all-time high this year because the crisis is forcing companies to go into franchising as a way to expand their business. At the same time, Filipinos who are seeking another source of income for fear of losing their jobs, and even those that already lost their jobs, are multiplying,” Bartolome told the BusinessMirror at the sidelines of the Philippine International Food and Beverage Expo at the World Trade Center on Friday.

Currently, Bartolome said there are about 1,000 franchisors in the country, with about 70 percent of them home-grown. The number of franchisors, he said, can easily grow by 45 percent this year.

New franchisors, Bartolome said, can sign in up to 10 franchisees in the first year.

Existing franchisors, on the other hand, can expect up to 30- percent growth in their franchised outlets.

“There is really a strong demand for franchising concepts right now, especially for the companies that are well-advertised,” Bartolome said.

He said demand is coming largely from overseas Filipino workers and their families, retirees, entrepreneurs and the salaried individuals who need to augment their income.

The hot franchise concepts right now are the Hong Kong noodle stands and dim sums.

Bartolome said Metro Manila could be nearing saturation already for some franchise concepts, so it is best to go to the provinces.

Also, he said, it would be a wise move to pick the low-end and mass-type concepts.

Gerlie Pagtakhan, general manager of GSP Lechon Manok Inc., said the company is opening up at least two franchise outlets each month. It is offering a cart business for roasted chicken at only P175,000 all-in.

Pagtakhan said some of their franchisees have recovered their investments in less than three months, particularly those who are selling at least 40 pieces of chicken per day.

Bartolome said the public should be careful in hooking up with a franchisor and carefully review the contract first because it is the only instrument that they can use should they need to go to court in the future.

source:, photo from


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