Manila, Philippines

Pinoy Franchise Shopping at 12th AFFI Expo

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My commander and I went to the 12th Association of Filipino Franchisers Inc (AFFI) Expo held in World Trade Center last October 4 to 6.
If you’re looking for good business opportunities, like us, particularly franchising established brands, events such as these are a good place to start.
Members and participants showcased their various businesses open for franchising: food carts and restaurants, water purifiers, oil and LPG dealerships, drugstores, among others. Lots of familiar names, same products with varying names, but also lots of first-time-to-hear brands: either fast growing ones and/or established provincial brands looking for their niche here in the Metro.

Guest speakers (educational and inspirational alike) and cooking shows also graced the event, as some food businesses shared bits of their recipes. Mascots also had dancing showdowns, lots of food stalls to choose from, some freebies and free food, lots of flyers and contact numbers from those offering their own franchising.
Some key insights:
Pros and Cons
Franchising is advantageous if you are looking for established businesses, complete with systems, processes, manuals, supply chain, recipes, staff uniform, guidance and assistance, economies of scale, and most importantly market presence and brand name. Saves you the headache of coming up one of your own. But this comes at a cost, like 30k to 300k based from those we interviewed.

If you’d rather start from scratch and try to study their business model instead (imitate and improve), then you may save money substantially but you may lose on the “established intangibles” since you’re still a start up. 
KYF and Connections
Know your franchise. Not all franchised businesses are surefire successes. Their previous success is not guarantee of yours. And you will definitely have to work hard and work smart still to make yours a success too. But at least there is higher fighting chance for you. Also, you’ll have their expert guidance if you chose your franchise well. Some franchisers are also starting up (less than 10 stores) while some already have franchisees overseas. Agreements vary, some 1 year contract, some 3 or 5. Renewal fees vary, some don’t charge at all in exchange for royalty fees. No franchise package is very much the same.
Don’t be shy to ask for business locations too, as some already have available locations reserved for them, just waiting for a potential franchisee. After all, they surely know the right connections to these things more than we do. Otherwise, they shall help you find other business locations, or assess (and approve) any locations you have in mind.
Inclusive Growth
We have scored our 3rd credit rating upgrade but much remains to be done. Business sector says the upgrade is a plus, but we also need to focus on governance and implementing / improving our laws and systems. The AFFI expo also stressed that for inclusive growth, one that is felt by the common Juan, entrepreneurship is a key ingredient. Through creating businesses, such as the franchise, we generate economic activity and create jobs. More funds, more fun for every Juan.
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4 Responses

  1. Clive Allen says:

    Your blog is awfully appealing. Your workshop is tremendous. I desire to be present there. I am contented with your post. I will visit you for more update. Thanks!
    Buying a franchise

  2. Geri says:

    You might find my post on Business Tripod (Oct 29) helpful. From your query, you are interested on franchising (product) and you have 150k budget (puhunan). My next question is where do you want to put it (place)? As place can still alter your 2 others Ps.

    Assuming place is settled, there are a number of franchises you can get for less than 150k. But these are the market followers, not the market leaders. Nonetheless, if the place doesn't have such products yet, then you might want to give it a shot. Donuts, nachos, waffles, siopao, siomai, ice cream, pizza, there are small food carts franchisers that can fit your budget. Consider palamig too.

    But again, the 3 Ps should play together. Hope I was able to help in a small way. Good luck!

  3. Anonymous says:

    Hi.would you mind suggesting a product which I can franchise for less than 150k? I have a very tight budget but I want to start my business as early as now. Thanks!

  4. Leo D. says:

    was there too! lots of franchises to choose from but very limited budget. 🙁

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