Local companies, brands urged to participate in Franchise Asia

CEBU, Philippines - As the Philippines aims to be known as the “franchise hub in Asia,” the Philippine Franchise Association (PFA) is urging Cebuano companies to participate in the upcoming “Franchise Asia 2011,” which will be attended by the head of national franchise associations from 43 member countries.

PFA, led by Elizabeth Pardo-Orbeta officially launched the event in Cebu, considering the good potential of Cebuano brands to penetrate the fertile franchise business, as well as get good deals for master-franchise from renowned brands abroad.

To be held on September 19-25 at the SMX Convention Center in Manila, the four-in-one event bannered under the theme “Asia to the World*The World To Asia”, it aims at providing the platform to showcase the world the best Philippine franchise brands and concepts, as well as provide a gateway for international brands to enter the 650 million ASEAN market through the Philippines, thus affirming the country’s position as the emerging “Franchise Hub in Asia.”

Franchising will continue to fuel growth of some of the world’s largest and emerging economies including the Philippines, according to the joint statement issued by 32 countries that attended the World Franchise Council (WFC) meeting hosted by the German Franchise Association in Berlin, Germany last April 12-16, 2011. 

“As articulated in the WFC Berlin Declaration of 2011, the global outlook is bullish for franchised business as they are expected to bolster the levels of national income, employment opportunities and investments in the world’s top economies like India and China, as well as ASEAN markets like the Philippines, Singapore and Malaysia,” said WFC chairman and PFA chairman emeritus Samie Lim.

In the Philippines, franchising accounted for US$9.45 billion or 30 percent of the retail output in 2010 with over a million employment opportunities generated.

The sector is expected to grow by 20 percent in the next two years, Lim attributed this robust outlook to several factors like the entry of new players from micro, small and medium enterprises (MSMEs), the continued rise of the Business Process Outsourcing (BPO) industry, and introduction of indigenous and food concepts.

“The country is riding the crest of political and economic stability that is highlighted by new investors’ confidence. With consumer index at an all-time high, the Philippines offers the most strategic place for expanding and investing in franchising,” Lim said.

The upcoming international franchise expo is a one-stop shop for the best business opportunities ranging from established and successful brands to new and promising franchise concepts, in food, retail and service—both homegrown and international.

Because of the Philippines’ active stance to professionalize the franchising industry, there are now a growing number of Filipino brands expanding abroad through franchise platform, such as Jollibee, Cebuano-owned Penshoppe, Bench, Kamiseta, Manels, Goldilocks, Potato Corner, Pancake House, Max’s Restaurant, among others.

Orbeta hopes that more Filipino brands and services concept will be able to conquer the world market through franchising. Thus, it is important for Filipino entrepreneurs to know the franchise system, as this is considered as one of the most effective tools to achieve growth and fast moving expansion plan.

Of the 1,093 Franchised business in the Philippines today, 66 percent of which are homegrown brands, while 34 percent are foreign owned.

The franchise business contributed about five percent of the country’s Gross Domestic Product (GDP).  (FREEMAN)