Best Businesses to Franchise in the Philippines

by Moneymax, on category "Business,Personal Finance"

December 4, 2017

Best Business Franchise |

Everyone is working towards autonomy and financial independence. It’s one of the reasons we go to work every day. However, we sometimes get to a point where we feel ready to take our chances and bet on something we can own than work for.
If you’re at that point in your life, you’ve probably considered either starting your own business or purchasing a franchise. Either way is good because it’s a step towards building an empire for yourself—you get to be your own boss and manage your own time. However, if you’ve never had any experience running your own business, it may be best to try your hand at franchising first. That way, you can get the overall feel of what it’s like to run your own startup venture, manage your own people, and market your own products.
The Philippine Franchise Association explained franchising to be “the method of practicing and using another’s perfected the business concept.” In other words, by franchising a business, you’re using a formula that has been tried and tested by time and the evolving marketplace. The terms of a franchise agreement grant you the right to use the products and services of the franchisor, as well as other branding essentials like the business name, logo, and trademark, among others.

5 Most Popular Food Items to Sell

According to Rudolf Kotik, founder of RK Franchise Consultancy, food remained to be the top franchise in 2016. Many food kiosks have sprouted all over the Philippines in the last decade, and it’s partly due to the relatively low cost of starting a food cart franchise. If you’re kicking off with a small venture capital, a food kiosk is your best bet. You have many options to choose from:

Potato chips and fries

Fried potato in all shapes and sizes is a staple food found everywhere—in malls, food courts, schools, terminals, night markets, and food fairs.
Pinoys simply love deep-fried, fresh-cut potatoes seasoned with all types of flavors. One popular franchise of this kind is Potato Corner, which now boasts over 500 branches in the country. It’s only been around since 1992, but it has already expanded to countries like Indonesia, USA, Panama, Australia, Singapore, Thailand, and just recently, Hong Kong.


Siomai and siopao remain to be popular snacks for Pinoys. They’re not too expensive, plus they can count for a complete meal when partnered with sago’t gulaman. Some notable food kiosks in this department are Master Siomai, Siomai King, Hen Lin, and Pinoy Pao. On a side note, another food item that has grown in popularity over the years, although not exactly a dimsum, is takoyaki. It’s worth a mention in this list.

Instagram photo by @thisisandysmith

Instagram photo by @thisisandysmith

Coffee and tea

You can never go wrong with coffee, especially in this era that embraces it so willingly. Coffee lovers are everywhere—one peek at a coffee shop will tell you just how big the craze is for this prized beverage. The same can be said about milk tea, which, unlike its cousin, the pearl shake, is steadily growing more popular each year. Some notable coffee and milk tea franchises are Foss Coffee, Star Frappe, Chatime, and Happy Lemon.


This affordable Mediterranean snack has always been a favorite among Pinoys. Its convenient packaging makes it easy to eat. Plus, it’s also a relatively healthy street food. Some of the common shawarma carts you will find in the market are Turks and Shawarma House.


These Spanish snacks are like donuts—except they’re deep-fried, crunchy, and dusted with sugar or cinnamon.You can consider franchising Churros City or Don’s Original Spanish Churros, which are two of the most common kiosks in the Philippines.

Pros and Cons of Franchising

No business offers guaranteed success—not even franchising. Consumers’ tastes are continually changing, making the market more unpredictable by the day. That’s why whatever existing frameworks a franchise may have must constantly evolve with the times. Even so, there are some pros and cons you can expect from franchising.
Let’s start with the good points. The most obvious advantage of franchising is that you get to start in the middle. You don’t have to develop a business concept from scratch because you’re basically adopting one that has already been proven effective. Other advantages include:

  • Well-documented operating system. When you buy a franchise, you purchase more than the products and services—you also pay for the knowledge and experience that the franchisor has gained over the years. You’re paying to adopt a model that has been proven to work.
  • Better brand recognition. Most franchises have existing customers that patronize them, so this saves you extra time and effort that you would otherwise use to come up with a marketing plan to attract a solid customer base.
Best Businesses to Franchise |

Instagram photo by @potatocornerph

  • Continual support. Franchisors often provide ongoing advice and support to franchisees, so you know there is always someone working behind the curtains to make your business better.
  • Free employee training. Okay, it’s not exactly free since you pay for it by purchasing the franchise, but the fact that it’s included in the package is a great help. Training is usually done either in the franchisor’s home office or in the franchisee’s place of business.

Everything sounds good so far, but before you make up your mind, consider these drawbacks as well:

  • Less flexibility. There are rules to follow at all times. You can’t just deviate from the manual without asking for the franchisor’s approval. Also, since you’re tied to the franchisor, any problem stemming from the top will be cascaded down to you and the other franchises.
  • Ongoing costs. In a franchise business, you never receive the entirety of your profits because you have royalty fees to pay for. The franchisor uses these fees for research and marketing purposes.

Final Thoughts

Franchising may sound easy—and, indeed, it’s easier than building your business from the ground up—but it’s wrong to think of it as a passive investment where you can just sit back, relax, and watch your money grow. Just like in any other business, franchising takes time, effort, and a little more cash than you expect. So, before you hop into this venture, make sure it’s the best course for you to take. Plan your finances and make sure to franchise a business that suits your taste. 
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