Franchising as investment choice

CEBU, Philippines - The country’s franchising sector has developed over the years into an investment choice and an ideal business model for many enterprising people, the Philippine Franchise Association said. 

In fact, the association has indicated that from just five percent, the industry has already contributed 45 percent to the total retail sales in the Philippines, attributing to the people’s demand for food and non-food products sold by franchise stores.

A number of individuals and professionals are seeing the advantage of investing their hard-earned money to buy a franchise, said Richard Sanz, the PFA director for MSME Promotions and Development.

The director said that a growing number of aspiring entrepreneurs, Overseas Filipino Workers  medical practitioners and even people in the academe have also considered franchising as a practical business opportunity and their way to entrepreneurship.

“With franchising, you don’t have to start a business from scratch,” Sanz noted, “and there is no longer trial and error stage which is mostly associated with most startup businesses.”

Sanz believed that many people in Cebu have the potential to be part of this industry as it is considered to have a growing economy and strong purchasing power of its people.

He also cited that many Cebu-based brands have made it to the national and international franchise market, one basis that such enterprise has a high success rate.

Although Cebu is seen as a challenging market, it has become a key venue for expansion for most emerging franchise brands, he further added.

On the other hand, people who are planning to get a franchise must always put in mind that they need to manage it like a usual business and have passion for it, advised Ramon M. Lopez, executive director of the Philippine Center for Entrepreneurship - Go Negosyo.

“Alam niyo hindi po pwedeng live it there na lang,” Lopez noted. “It’s really like managing your own business.”

The Go Negosyo director also shared that the interest of many to entrepreneurship is one reason why franchising has continued to grow into a thriving industry.

PFA yesterday opened yesterday the “Franchising NeGosyo Para Sa Cebu” in Ayala Center Cebu to display various franchise concepts both from Cebu and Manila. The exhibit will run until Saturday.

Sanz said this is also one way to encourage Cebuanos to see the opportunities in setting up their own enterprise and be able to contribute in achieving inclusive growth. (FREEMAN)