US franchise firms keen on having local partners

MANILA, Philippines - US franchise firms are keen on finding local partners as the Philippines is seen as an important market in the region.

Kristin Houston, senior international trade specialist of the US Commercial Service told reporters that there is strong interest from the 14 American franchise concepts to do business in the country.

“Many of the companies are not only committed to the Philippines but to the region as well,” she said.

The delegation which visited the country from July 17 to 19, was organized by the US Embassy with the US Commercial Service, International Franchise Association (IFA) and the Franchise Times.

Houston said the mission is the first to be organized by the US government to the Philippines focused on franchising.

The mission is composed of the following:  Edible Arrangements, Great American Cookies, Marble Slab Creamery, Panda Express, PJ’s Coffee, Pretzelmaker, Russo’s New York Pizzeria, Tilted Kilt Pub & Eatery, World of Beer, Wow Cafe, Jan-Pro Cleaning Systems, RadioShack, TitleBoxing Club, and Tutor DoctorRepresentatives of  these companies met with prospective Philippine master franchisees to discuss business opportunities.

IFA director for international affairs Josh Merin said in the same event the Philippines which was previously not on the radar of franchise firms, has become an important market.“

It was historically not nearly an important market. It was over the past five to six years that it has come to the forefront as an important market to international franchise companies,” he said.

He noted that the Philippines has become an attractive market for US franchise firms given the country’s economic growth, its strong cultural ties with the US, the English-speaking population and improved regulatory environment which has made it easier for franchise companies to come in.“

Another important piece is the growing sophistication of  the business community. You talk to member companies looking to explore the Philippines 10 years ago, they had trouble looking for a partner who they think will be successful and they feel that there has been change in potential qualified partners today,” he said.“