An entrepreneur’s mindset is always on-the-go. There is still the enthusiasm to improve in the field of business and the urge to grow it in the long run. This critical thinking skill is an asset that every entrepreneur has, and it makes them expand the business from a small enterprise to an empire.
Every entrepreneurial idea starts with a homegrown concept. In the Philippines, 80% of the franchises are local brands that offer franchising opportunities. This is a good indicator that the industry is booming and gaining recognition from those interested in franchising.
Homegrown Brands in the Philippines
Dubbed as the ‘franchise hub of Asia,’ the popular brands in the Philippine market today are homegrown brands. Included in the list are Chowking, Figaro, Goldilocks, Jollibee, Max’s, Pancake House, Red Ribbon, and of course, the first food cart business in the country, Potato Corner.
These businesses are built by independent individuals who have an interest in growing a brand that will create a name in the future. Their success stories are proof that companies can still thrive in an economy where competition is high.
If you are interested in business, it is an excellent choice to start with a unique concept and cultivate it as a homegrown company. Your efforts must be focused on establishing a system and protecting the business model that you want to pursue.
Growing the Business
In growing a business, it is best to cultivate it first within the community, then expand through franchising. Given the opportunities, the charm of a franchise business has never failed to attract millennials in investing.
Many homegrown ideas prosper because they are nurtured well by their owners. This means, the business is well-founded and managed adequately without losing the integral uniqueness of the business itself.
As an entrepreneur, there is an assurance that by successfully growing the enterprise in the local community, you gain name recognition of your business. You are hitting two birds with one stone since you also technically gain a marketing tactic by means of word-of-mouth (WOM) from the people who know your business well.
Who would have thought that Jollibee can be one of the world’s known brands today? Nobody, not until they managed to build their reputation in the industry through the years. The secret? Stay optimistic until the end.
Hence, after getting the support for your local brand, you must consider the option to offer franchising opportunities to other investors. This time, you are growing your brand, not just locally but also nationally and internationally.
Franchising Requirements and Fees
Starting your franchise business right is the best way to avoid problems in the future. This means you need to prepare legal documents and specific fees. If you are ready to start your franchising business, take a look at the following brief and usual requirements you need to prepare.
- Letter of intent to franchise
- Application form
- Site location proposal
- Business name registration from the Department of Trade and Industry (DTI)
- Barangay clearance
- Business or Mayor’s permit
For the fees, it always varies from one franchise to another. However, you need to understand that there is an overall cost, which is necessary to support the needs of the business to hit the ground running.
Among the fees are:
- Franchise Fee - the price that you must pay to acquire rights to use the company name and logo, the business system, and to access the training and support program of the company.
- Royalty Fee - this often depends on the franchisor, but usually, this fee comes in various forms such as in percentage of gross sales, percentage o purchase, and fixed recurring fee.
- Marketing and Advertising Fee - this is a periodic monthly fee (most of the time) that is intended to promote your business by driving clients through ads (though some franchisors charge this without even a single ad produced ever)
- Renewal Fee - the fee you need to pay after your agreed terms with the company expires. It is important to note that the renewal fee must be lower than the franchise fee.
Why Choose FranchiseMarket?
FranchiseMarket is the leading online platform that makes all franchising ends meet and create possible business opportunities. As a free tool, it is the perfect channel for small businesses to have their franchise up for listings and connect with prospect franchisees.
It is the answer for every franchisor and franchisee’s needs in the fields of education, food and beverages, food cart listing, retail, and services. Moreover, aside from connecting you to the right franchise for your business, we also help businesses get the right attention they need for the franchise, including job listings, properties, assets, and franchise consultants/developers.
Are you up for the franchising challenge or in search of finding the right franchise for you? Contact us today and let us help you! Let’s make franchising a win-win partnership.
Ultimate Guide to Franchising
Avoiding Scams, Making Smart Investments, and Better Decisions
The franchise industry is booming, and entrepreneurs are wondering about how this sector works. This ebook aims to help aspiring franchisees achieve their business goals.Learn more