Preferred franchising option: Wellness sector comes second to food business

CEBU, Philippines - As people are now more keen on investing on wellness, industry players have expressed heightened interest of expanding their presence in the Philippines through franchising to meet the growing market demand.

This is according to RK Franchise Consultancy founder Rudolf Kotik who cited that the wellness sector from the non-food business franchise sector ranks next to the food business which remains on top of the list of franchisers in the country.

“In the franchising industry, food dominates as usual. But this year, the wellness business is becoming more vibrant as more people are getting vain with their physical appearances,” he said.

Kotik earlier said that the franchising industry has increased tremendously of at least 20-percent growth in the Visayas and Mindanao for the last 15 years.

He cited that 60 percent of the growth could be attributed to the food franchises while 30% to the beauty and wellness industry that is mostly represented by businesses that are into cosmetics and beauty enhancements.

In January alone of this year, he has developed 12 companies into franchise. Most of these companies, he added, are Luzon-based and are into automobile industry, food sector and beauty-related businesses.

This year, his licensed franchising company aims to develop 60 companies this year, higher than the achieved 57 companies developed last year.

Kotik further considered this month’s performance as strongest in history as more company-owned enterprises recognize the value of franchising as an ideal expansion strategy.

“If they are eyeing to be nationwide and capture a wider market, expand through franchising and grow your business faster,” he stated.

Also evident to such boom in the wellness sector, Kotik said, is the increased participation of these businesses in franchising expos.

For instance, he said that the 15th Cebu Franchise Expo set on March 7 to 9 at SM City Cebu Trade Hall shall feature Elite Nails & Spa, Ystilo Salon, and BN Whitening Shoppe as exhibitors and O’hair Salon, Myface n Mynails Salon as exhibit partners.

The three-day expo which is already fully booked within three months shall have 80 booths that will showcase well-established franchise companies that are mostly from Luzon and Cebu. 

It will highlight homegrown and international franchise enterprises, micro-finance banks and institutions who are involved in small and medium enterprise development.

Kotik cited that this year’s event will be participated by new local and international franchising companies such as House of Cashew, Auto Mo Gawa Ko, BN Whitening Shoppe, St. Francis Drugstore and Chewy Junior from Singapore.

There will also be repeat exhibitors who will join the expo again like 7 Eleven of the Philippine Seven Corporation.

Seminars will also be conducted by Kotik as a senior franchise consultant on March 8 at 1:30 PM at the SM City Cebu Conference Room.

Topics will include Franchising 101, its history, its benefits, demands and advantages, how to select a franchise, mistakes by franchise buyers, franchising a business, legal franchise requirements, franchise operations manual, franchise disclosure information, the future of franchising and franchise opportunities.

To extend assistance to companies in obtaining trademarks to secure its exclusivity, FIFA will also conduct a seminar on trademark registration that will be represented by trademark specialist Nedjet Capuno.

Bullish with the higher purchasing power and spending capacity of the public, Kotik expects higher foot traffic and more franchise deals to be closed for this year’s exposition.

He shared that they plan to hold another franchising expo in Abreeza Mall in Davao City on December 12 to 14. They are also eyeing to organize the same expo in Bacolod hopefully by October. Last year, they also conducted the event in Iloilo.

Filipino International Franchise Association (FIFA) together with RK Franchise Consultancy organized the exposition in partnership with other companies such as Globe, 2go Express, RK Franchise Consultancy, Franchising PH Magazine, Phoenix Petroleum, Julies Bakeshop, Rairaiken, Botoys Litson Manok, Achievers Food & Bakery Ingredients Corp, Technolux, San Miguel Foods, GAP Mechanical Services and New Era Pension Inn. (FREEMAN)