Franchisers eye Mindanao market

MANILA, Philippines - An association of homegrown franchise brands is setting its sights on Mindanao for the development of new franchise concepts and enlargement of its member and investor base.

“We believe that Mindanao is really such a potential place. There is a lot of entrepreneurial spirit in there. The second place is Visayas,” said Armando Bartolome, president of the Association of Filipino Franchisers Inc. (AFFI).

Bartolome said many entrepreneurs in Mindanao are hesitant to expand their small businesses because they lack access to technology to preserve, transport, and market their products.

“But we can provide them that through our support services,” said Bartolome.

He said that as Metro Manila becomes a saturated market for franchises, the industry has plenty of growth opportunity if native products such as delicacies and cuisine, and agricultural products such as coffee could be developed into concept brands.AFFI is a 15-year-old organization composed of 75 local franchise concepts and 10 support service with capitalization ranging from P50,000 to P3 million. Among its franchisors are Peanut World, Sweet Corner, Fiorgelato, Baliwag Lechon, Lots A Pizza, Bayad Center, Figaro and Chicco di Café.

The organization is intent on making itself a more recognizable franchisor association by setting up a regional office in Davao within the year and a head office in Mandaluyong City next month which will be called the AFFI Center for Franchising.

Bartolome assumed leadership of the organization in March. It plans to hold a series of seminars on franchising in Davao and General Santos City next month and a franchise show in October.

He said AFFI is taking advantage of new store and kiosk spaces that would soon open in the P2.5-billion shopping mall in General Santos City which is being developed by SM Corp., its largest in Mindanao so far.

New concept brands that would be developed would also be encouraged to expand within the country and overseas.

AFFI head of membership committee and Peanut World founder Josephine See said the association is also strengthening its screening for new members. Applicants must have businesses that have been operating for two years, a good financial standing, and must have interest in franchising.

Bartolome said this would protect the organization from being infiltrated by fly-by-night franchisers.

AFFI would also provide additional trainings for its members.

“We will have weekly seminars open to the public and at the same time, seminars for the member. We need to educate them also in marketing, customer service and accounting,” he said.