Franchising In The Philippines

Franchising has been in the Philippines for 94 years. With the entry of the Singer sewing machine in 1910 which introduced the product distribution. Many companies embraced this concept as their vehicle for business expansion over the years. From 1910 to 1965, businesses staked their flags for the Philippine economy through DISTRIBUTION OF THE PRODUCT. Some of these are multinational tire and pharmaceutical companies.

The take off was slow in the early years as the companies succeeding as AandW Restaurant known for its root beer entered in 1965. The first outlet was established on Highway 54 (hours popularly and historically known as Epifanio Delos Santos Avenue or EDSA) near the Big Dome Araneta Coliseum. The concept was a drive-thru where women food attendants dressed in mini-skirts, black socks and roller skates would serve customers in the comfort of their cars. Trays blocked by the side of the door and jugs with the fresh root beer partnered with foot long hotdogs were served. His set-up was exactly the same as found in the branches of the U.S. during those years. What brought this society was another form of franchising, which is known as business format. Since then most of the new market embraced this concept, in fact, so widely used not only in the Philippines but all around the world.

Distribution of the product

This is a form of franchising where owners of products that allow other parties to sell or distribute their products or even use their brand as a retailer. There is little or no control of operations. The report focuses on the quality of products sold.

Business Format

A form of franchising used by 90% of companies involved in franchising. This is the reason for which is considered the most effective way of franchise worldwide expansion.

In commercial format, the franchisor, the more of its trademark and products, has developed a business system that is made available for use to members. Compliance with the enterprise system is the central and essential element of their contract contained in a franchise agreement.

The first survey of franchising in the Philippines conducted in 1995 revealed that there were a total of 50 operating foreign franchisors at that time. The success rate of foreign affiliates is 97%. In 2003, there were 315 foreign franchisors in the country with the success rate of 87%.

Philippines Based (Home-Grown) Franchise

First registered company that homegrown business format franchising has been used Pancake House. It 's been franchising since 1978. Pancake House is still active in franchising and has transferred the property a few years ago.

In 1996, there were 94 companies that use franchising as their route expansion and the number is significantly increased to 481 in 2003. The success rate is a good 90%.

Franchise Philippines Scenario

Franchise in the country evolved from the franchise system in the United States. There are, however, not laws governing franchise. Companies and franchise developers use international franchise practices as reference and guide for pursuing this type of activity. The growing number of homegrown companies using franchising in their expansion can be attributed to the presence and increasing number of foreign franchisors. Served as motivation and inspiration for local entrepreneurs.

Franchising for years has been the monopoly of the food industry. It was only in mid-1990 is that employers and service used to sell franchises.

There was a lack of education franchise in the country for decades. Franchising Conference and Seminars started only in the mid 90s. Franchise Associations have been formed with the vision of professionalization and standardization of the franchise as well as their own ranks of the police .......