Franchise opportunities offered in the Philippines amid the pandemic

As the global economy tries to reboot during this pandemic, Philippine officials are inviting U.S. business owners to consider opening up shop in the Philippines with a franchise.

The Philippine Embassy, U.S. Philippine Consulates, and the Philippine Department of Trade and Industry have hosted a series of “Trabaho, Negosyo, Kabuhayan” seminars, and among the topics discussed, franchises.

“Now that the Philippines is easing lockdown restrictions, the country is poised for a strong recovery, the government is making sure by releasing several stimulus packages aimed at creating jobs and helping and MSME’s. The purpose of this seminar after all is not just to encourage our attendees to become entrepreneurs via franchising but also to educate the public on wise franchise investments.”

Officials expect a golden age of franchising from 2021 to 2025.

A USAID study has found that franchises, which already have recognizable names and popularity, will succeed 90 percent of the time compared to traditional businesses which only have a 25 percent success rate.

While delivery and to-go foods are seen to have the biggest potential especially amid the pandemic, officials said there are some 1,800 franchises covering a wide variety of products and services.

“Don’t think franchise is just about food. You get into services you could get into retail, franchising expands so many sectors,” said Chris Lim.

Lim said another perk of franchising, is that franchisees are not operating alone, and can often find help from the franchisors, especially as businesses try to rebound from an economic slump.

“We have started to transition our franchisees from being brick and mortar stores into stores with additional sales channels so they start venturing into online and now that businesses are starting to reopen here in the Philippines, we told them to still maintain that online platform. As we know as we transition to the new normal, sales will not be as high for some of the stores, for that matter we are working some programs we can incorporate so they can have additional income streams.”

Officials recommended, to fully maximize benefits, franchisors need to be dual citizens, and hold philippine passports. They must also register at the Philippine Department of trade and industry.

Lim advised that for foreign investors, franchises that require minimal staff would be a better choice if they choose not to be based in the Philippines.

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  • Mario
    9 July 2020 at 5:47 pm - Reply

    INVITING US investors?. TRUMP invited DUTERTE to the WH 3 times, but DUTERTE wasted his time visiting China, Russia never on the US. Former Pres of Vietnam visited the WH 2 time, then the new President visited TRUMP last year. US 5,000 FACTORY which employed 10-20 Million workers are moving out of China. The bulk of US Factories are moving to VIETNAM, INDIA, Thailand, and other Asian countries. The PH has all the ready facilities like Bataan FREE trade ZONE, but due to lack of promotion, high EGO, and foresight, they miss the bulk of business opportunity. This time it is predicted that VIETNAM is the next Asian Superpower. PH Dept of Trade should advertise the readiness of the Bataan FREE trade Zone. US Factory used to occupy BATAAN but due to labor UNION, CHINA offered a NON-UNION agreement, The US 5000 Factory made CHINA a Superpower. This time US Navy shipyard repair moved back to SUBIC, under Australian Shipbuilding Company. TRUMP could have easily given that contract direct to the PH Government instead of the Australian.