Exporters told to explore franchising opportunities

CEBU, Philippines - The World Franchise Council (WFC) has urged exporters to explore the opportunities of franchising, while the export market is still struggling, and recovery is not yet seen at least in the short term.

WFC chairman Samie Lim, made this call amid the promising outlook for the Philippine franchising sector, as many franchisors are now setting their sights on Asia, while United States and Europe are in bad shape.

“For the next five years, they are looking at Asia and fortunately, the Philippines has prepared itsefl, we are ready,” said Lim.

Because of this opportunity, Lim encouraged exporters to try on the franchising business, although not totally abandoning exports.

Lim said the Philippines is considered as one of the most attractive markets for franchising, saying “the Philippines has the biggest malls in the world, people here are alwasy smiling, everybody speaks English, they are young and they eat six times a day.”

He said franchising can be an alternative venture particularly for exporters, as long as they will adopt the franchising model of expansion.

“They [exporters] must stop thinking now—I want a buyer who wants to buy 20 containers for next year. They must think of the other dimension that is creating shops. Franchises are stores, shops have brands and designs,” he said.

Franchising could be a good option for diversification of exporters, as exporters are already knowledgeable about the original equipment manufacturing (OEM), original design manufacturing (ODM), and original brand manufacturing (OBM).

“We should be displaying original Philippine designs. Franchising brought the third dimension called original brand manufacturing,” he said.

Based on the industry’s projection, the country’s franchising sector is seen to generate P50 billion in additional investments in the next three years.

“New franchise stores or restaurants I believe will generate about P200 billion additional sales revenues, meaning the government can take taxes from that. And it will generate 125,000 jobs at least in the next five years,” Lim emphasized.              

Also, aside from exporters who are on the right position to take advantage of this opportunity, Lim also encouraged the OFWs (Overseas Filipinos Workers) to grab the franchising business, especially those affected by political and financial crises in other countries.

While Lim is encouraging exporters and OFWs to take advantage of the promising franchising business, he however, warned to be careful in entering in this kind of business, saying learning the know-how of franchising fundamentals is vital.

In Cebu, some exporters have already taken their steps in diversifying their businesses, while the export sector is yet to rebound.

Aside from franchising, a number of successful exporters are now investing their money on real estate sector.

Some Cebuano exporters are also now on retail, food and beverage businesses.  (FREEMAN)