September 11, 2018 | Posted by: Venus Zoleta | Personal Finance
September 11, 2018
Franchise businesses in the Philippines enjoy a higher success rate of 90% versus the general retail industry’s 25%, according to the Philippine Franchise Association (PFA). And with ROIs coming in as quick as less than a year, franchising is an ideal business option for first-time entrepreneurs.
Already decided on the type of business you’ll start? After doing your research and finding a suitable location, you can start your franchise business application with potential franchisors. Expect the application process to take a long time, at least a month for a food cart franchise.
Although the actual process varies from one franchisor to another, a franchise business application in the Philippines typically involves these four major steps.
Contact various companies that offer a franchise in your preferred industry. It allows you to know more about the requirements, costs, and other important details about running a particular franchise business.
Find the contact information of your target franchisors on their official website, usually on the Franchising or Franchise With Us page. Some franchisors (especially those without a website) can be reached through their Facebook page.
Looking for food franchise business opportunities? Check out this list of food franchise businesses and their contact details.
No idea which franchisors to reach out to? Websites of franchise associations are a great starting point for your search. The PFA website, for example, has a member directory that lists companies in the Philippines that are open for franchising, plus their contact details.
Franchise expos are a one-stop shop for any aspiring franchisee. Companies all over the Philippines (and even abroad) gather in one place to offer franchising opportunities.
Make the most of your franchise expo participation, so you can pick the companies that are worth investing in. Go to the booths of franchisors you’re really interested in starting a franchise business with. Ask a lot of questions, too.
Franchise expos also hold seminars on various business topics. You may want to sign up for one, as it’s a great chance for beginners like you to learn from industry experts.
To check the latest franchise expo schedule in your area, you may visit the Franchise Asia Philippines Facebook page.
Getting a franchising loan from BPI? The bank can help you find and connect with companies that offer a franchise through its Franchise Finder on the BPI Ka-Negosyo site.
After you’ve touched base with potential franchisors, you’ll be asked to submit requirements for starting a franchise business through email.
Some companies ask for additional requirements from franchise applicants. Have these documents ready just in case they’re required:
The franchisor will review your franchise application documents to assess your qualification as a franchisee—particularly your available capital, professional experience, academic background, business connections, and other relevant details.
At the same time, your proposed site will undergo inspection and evaluation to determine its suitability as a franchise business location.
If you pass the initial screening, the franchisor will invite you to a meeting and interview at the company’s office. Follow-up meetings may also be scheduled afterwards.
Meeting the franchisor is a crucial step in your application. As prospective business partners, both parties need to know if they’re a good fit for each other before closing the deal.
The company’s store manager, sales officer, or any representative may discuss the following with franchise applicants in a series of meetings:
After the series of business meetings, the franchisor will give you a draft Franchise Agreement for your review. This legal document specifies the terms and conditions of the franchise set-up and the rights and responsibilities of the franchisor and the franchisee.
Go over the document meticulously before you sign it. You may even show it to a lawyer to get legal advice or help in understanding any legal terms.
If you agree to all terms of the contract, then you can go ahead with signing the document. If not, keep exploring franchise business opportunities in other companies.
At any point in your franchise business application, don’t hesitate to ask the franchisor questions. This can help you decide whether or not to pursue a business partnership with a particular company.
A franchise business application is no different from applying for a job, or even dating. The whole process involves doing background checks and assessing each other’s compatibility. And once you’ve signed the contract, you’re expected to be fully committed to it.