30% growth projection for franchising sector 'conservative'

MANILA, Philippines - News on the 7.3 percent economic growth in the first quarter of the year has further lifted the spirit of the already upbeat franchise sector, making its projection of a 20 to 30 percent increase in sales for full-year 2010 a conservative estimate.

Chairman emeritus Samie Lim of the Philippine Franchise Association (PFA) said the 7.3-percent 1st quarter growth only confirmed the soundness of the industry’s projected expansion this year as it reflected the significantly improved performance of franchised businesses, which generally comprised the services sector.

Lim’s remark stemmed from the assessment of Economic Planning Secretary Augusto Santos that the seven-percent rise in remittances to $4.3 billion and the two-million increase in employment, particularly in services, fueled consumption during that period.

“This development will, not only further boost consumption, but also prop up the confidence of the business sector to all the more embark on productive enterprise, particularly in the consumer-driven franchising industry,” said PFA chairman and Max’s Restaurant president Robert S. Trota, who had projected sales growth of up to 30 percent from P121 billion in 2009 to P157 billion in 2010.

“The P121-billion sales in 2009 included a 20-percent growth despite the global crisis. Thus, the onset of global recovery this year could further raise the tide of industry growth once given the policy and infrastructure support by the incoming government administration,” Trota added.

PFA vice chairman Bing S. Limjoco said this growth momentum would get an added push from Franchise Expo, the exhibit component of the annual Philippine International Franchise Conference and Expo (PIFCE) dubbed “Franchise 2010”.

“Now on its 18th year and slated at the SMX Convention Center on July 16-18, Franchise Expo has been regularly promoting entrepreneurship by offering a wide range of franchised businesses to aspiring entrepreneurs and MSMEs (micro, small and medium enterprises). This is because franchising provides the highest probability of success, whether in good or bad times,” Limjoco added.

On the other hand, PFA president Yvette Pardo-Orbeta said a substantial chunk of the continuously increasing overseas Filipino remittances, including part of the $4.3 billion in the first quarter, could be channeled to franchised businesses to benefit the relatives of migrant Filipinos and consequently widen the country’s entrepreneurial and domestic capital base, thus further expanding the economy and increasing the sources of employment and purchasing power.

“The expo has been consistently expanding and now offers a record 336 booths to exhibitors and is expected to draw a record 30,000 visitors,” Orbeta said.

Franchise Expo 2010 includes colorful exhibits of local and international franchises, empowering franchise seminars, exciting business presentations, and vigorous industry networking and marketing activities.

Constituting the exhibits are the Incubation and Emerging Concepts Area, the Young Entrepreneurs and Women Entrepreneurs Sections, the International Pavilion, the Franchise Pavilion, and all types of allied and support services, making Franchise Expo 2010 a complete one-stop shop for business development and joint business ventures.

More information can be obtained from www.franchise2010.com where visitors can register on-line for special admission rates. Other expo details are available at the PFA Secretariat (tel. 02-6870365 to 67, 09178320732, or e-mail [email protected]), or through exhibit management team Global Link MP Events (tel. 02-7508588 or e-mail [email protected]).