The Franchise Industry of the Philippines

Franchise business is a popular trend in the Philippines today. There are many reasons why these types of franchising businesses had gained a lot of popularity in the market, and one of the most common reasons is because of its availability for middle-wage earners. Advantages of Franchise Businesses According to many business experts, the main advantage of franchise businesses is that the success of the franchisor is also the success of the franchisee, in which Filipinos can have the benefit of starting their business quickly based on a proven trademark, and the tooling and infrastructure as opposed to developing them.

However, there are also other reasons why Negosyo franchise had gained a lot of popularity in the Philippines. And one of those is because of its affordability.
Affordable Franchise Business According to the PFA or the Philippine Franchise Association, franchise businesses in the Philippines had significantly increased over the years. From 50 franchises in the 1990’s, the franchise industry today had now grown to over a thousand franchises across the country. And part of the reason why is because of the continuous growth of new business opportunities as well as the number of new and affordable franchises in the Philippines.

Some of the most popular types of Kanegosyo franchise businesses in the Philippines today are food cart businesses. Many of these types of businesses are found in high foot-traffic areas such as in LRT and MRT stations, malls, shopping centers, groceries, as well as in many sidewalks along highly populated areas.
The reason why these types of franchise businesses had gained a lot of popularity is because of its affordability. According to many Filipinos and business experts, these types of businesses can be easily franchised for as low as P20,000 Philippine Pesos. This allows more Filipinos the chance to start their own business and secure their future. This is also the reason why the franchise industry of the Philippines had significantly grown since the 1990’s.

Effects of the Growth of the Franchise Industry According to the PFA, the significant growth of the franchise industry had generated enterprises and thousands of jobs, making franchising an important tool in the country’s economic growth. And because of the significant growth in this sector, the Philippines was later recognized as the “franchise hub of Asia” when it comes to the development of franchise concepts.