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The answer ultimately depends on your location and your budget. That said, it’s always integral to look for a franchise business that offers potential for longevity and a short timeframe of ROI.
If you have the budget, 7-Eleven, Jollibee, and Potato Corner are great choices. ML Express and Bayad Center are also good options.
To give you a better perspective on these franchise businesses, take a look at this table below:
|Franchise business||Fees||Inclusions||Timeframe of ROI||Contract length|
|7-Eleven||Capital investment: P3.5 to P5 million|
Franchise fee: P600,000
|Less than a year||3 years (renewable for another 3)|
|Jollibee||Capital investment: P22 to P55 million||Signage|
Kitchen equipment and facilities
Air Conditioning system
|5-6 years||Starts at 10 years|
|Potato Corner||Franchise fee starts at Php250,000||Wares|
|12 to 18 months||Starts at 5 years|
|ML Express||P99,000||Starting budget|
ML Kwarta Palada Express System
|Depends on outlet size||n/a|
|Bayad Center||Franchise fee: P350,000 + 12% VATCapital investment: around P850,000||Training|
|2 years||5 years|
Do you finally have the capital for a business but have no idea what to do? Maybe getting into the franchise business is ideal for you.
What is a Franchise Business?
A franchise business is a partnership between a franchisor (original business) and a franchisee (investor that seeks to buy the right to sell and use the original business’ name, trademark, concept, process, goods, and services).
The International Franchise Association defines franchising as “a method for expanding a business and distributing goods and services through a licensing relationship.”
What happens is a person or company (the franchisor) grants the license to a third-party person or company (the franchisee) to conduct business using the franchisor’s products/services. The franchisor also provides the franchisee with an operating system, brand and support.
Simply put, in a business franchise an established brand/company will allow you to sell its products/services by selling the license to you.
Franchising is a more risk-free business endeavor for newbie entrepreneurs because they don’t need to build a brand and an audience. Because you get to sell products from a known and established brand, the better the chances that your business will not fail.
Another benefit of getting a franchise is usually the company provides franchisees with the equipment and the products needed to run the business as part of the package, so starting your operations will be less of a hassle.
Types of Franchise Business in the Philippines
In the Philippines, there are two main types of franchising:
Business Format Franchise
This is the most common type – where the franchisor gives the rights to things like trademarks, trade names, business processes, as well as the system order, which allows the franchisee to operate the business for a fee.
The franchisors provide a detailed plan, procedures, and guidelines concerning almost every aspect of the business. They also provide initial and ongoing training and support, which is essential to the success of a franchisee.
As you well know, some of the biggest brands in the world offer this type of franchising, with Jollibee, 7-Eleven, and Starbucks among the more popular ones in the Philippines.
Product Distribution Franchise
This type of franchising is very similar to the relationship of a supplier and distributor. Simply put, the franchisor is responsible for providing the product, which the distributor is then authorized to sell.
A notable difference between product distribution and business format is that in the former, the franchisor is only responsible for the product, whereas in the latter, there is also training, support, and access to business processes included in the agreement.
But because of the absence of those things, the franchisee has more liberty in terms of how to run the business.
It’s important to note, though, that while franchisees may enjoy more freedom, they still need to adhere to guidelines such as selling the products on either an exclusive or semi-exclusive basis.
In exchange for these rights, franchisees pay a fee to the trademarks of the products they will be selling.
This type is often used for larger products like vehicles and heavy equipment.
Pros and Cons of Franchising
Is franchising the right type of business for you? Or are you better off starting a business from scratch and running it on your own?
While it offers plenty of benefits, a franchise business also carries some risks. Weigh carefully the pros and cons of franchising before you decide whether to go for it or not.
1. Recognized and established brand
When you buy a franchise, you have the right to use the franchisor’s trade name and trademark or company logo.
This gives you access to the well-known brand’s customer base, so attracting and finding your first customers won’t be that difficult.
2. Tried-and-tested business model
The business operating systems of franchising brands have been tested in various markets in the Philippines and have already been proven to be effective.
The policies, procedures, and control systems for running the business are laid out in the operating manual—all you have to do is to follow it.
Thus, franchising suits you if you have no background or experience in business management.
3. Easier to get a great location
Having the backing of a large corporation or popular brand makes it easy to get a lease for your franchise business site.
If your target site is a mall, you can easily get approved for a lease because the established franchise brand can draw in more customers.
If you’re planning to start a food cart or kiosk business, location won’t be much of an issue because franchisors typically require just a small space of at least 4 square meters.
4. Training support
Starting a franchise business is a great way to learn how a successful company operates.
Franchisors provide training to help franchisees understand their business model and learn the day-to-day operations, customer service, and use of trade secrets such as proprietary recipes for food franchises.
Franchise packages may also include employee screening and training.
5. Pre-opening assistance
Franchisors help in the pre-opening needs of their franchisees such as site design, evaluation, and construction. Some franchise packages also include assistance for the grand opening.
6. Marketing support
Franchise brands in the Philippines have solid marketing and advertising campaigns in place, and their effects trickle down on their franchisees.
For example, if you get a shawarma food cart franchise, the package might include marketing materials such as a standee of a famous celebrity endorser like Daniel Padilla or Piolo Pascual. You won’t get such a crowd-drawer when you start a similar business on your own.
7. Continuous research and development
No need to worry about spending time and money for product development and innovation because the franchisor will take care of that. You can just focus on operations instead.
8. Faster ROI
Compared to starting your own business, you can expect a quicker return on investment with a franchise business.
The access to an established brand name, customer base, operating system, and all sorts of opening support cuts down the time it takes to recover your investment.
9. Higher chances of success
Running a franchise business has a success rate of 90%, based on a study by the United States Agency for International Development (USAID).
This fact is hardly surprising because all the franchising pros listed above contribute to raising the chances of success.
1. Expensive startup costs
The capital needed to start a franchise business is its biggest drawback. Usually, the initial investment is twice as (or even higher) that for opening a business from scratch.
The following are the typical startup expenses when starting a franchise business.
- Franchise fee – This one-time, upfront fee is what you pay to gain the license to use the franchise brand’s proprietary information legally, such as its trademark, logo, and trade secrets. The more popular the brand is, the higher this fee is charged.
- Royalty fees – The royalty payments for franchise businesses in the Philippines typically range from 3% to 10% of the monthly gross sales. It’s paid every month, so this can reduce your net income. Not all franchisors charge this fee, though.
- Advertisement and marketing fees – These are a small percentage of the gross monthly sales, which are used to fund the franchisor’s marketing support.
- Cost of supplies – Although some franchisors provide the initial supplies as part of the franchise package, franchisees have to keep buying the next batches either directly from the franchisor or its accredited suppliers. This can cost you higher compared to sourcing your own suppliers.
2. Limited flexibility and autonomy
Franchising doesn’t offer much to franchisees in terms of creativity and innovation. You’re bound to follow the rules in the operating manual and franchise agreement.
When you want to do something differently, like switching to a cheaper and more accessible supplier, you’ll have to seek the franchisor’s approval first. If the company doesn’t agree to it, you have no choice but to comply.
3. Lock-in period
Franchise contract terms range from two to five years or longer. Within that period, you’ll be stuck with the company regardless if it’s performing well financially or not.
Renewing the contract depends on the franchisor’s evaluation of your business relationship and your franchise business’ performance throughout the contract term.
4. Business risk
Just like any kind of business, franchising is also a risky venture. Your success will depend on the franchisor’s success. If the company fails, the reputation and performance of its franchisees will suffer as well.
Top Franchise Business Niches in the Philippines
Here are some of the most lucrative franchise business niches you can try in the Philippines.
1. Food Cart & Kiosk Franchise
Franchise Capital: Php 50,000 – Php 300,000
The food cart and kiosk franchise is probably the most innovative food franchising business model in the country, with a handful of players in the market.
This is a cheap alternative to the traditional brick-and-mortar food business with huge stores that also require considerable capital.
The beauty of this franchise is that it is mobile. It is easy to set up, and it is cheaper than a regular restaurant business. It does not require a lot of cash either. Some examples include:
Filipinos love grilled food. Grilling is also a cheaper way of cooking, so this is certainly a business for people with a limited budget.
One of the common takeout businesses seen in the Philippines is the “Turo-turo,” where you sell seafood, pork, beef, and chicken skewers. You may also choose a franchise model that does not follow the “turo-turo” style.
Another very lucrative food business is bakery and pastry shops. This business is very popular among Filipinos because we simply love eating sweet things.
Since Filipinos love eating sweet baked treats, you can almost set up a bakery anywhere you go. You can sell panaderia favorites such as pan de sal, pan de coco, ensaymada, and spanish bread.
Here are some of the top food cart & kiosk franchises in the Philippines:
|Potato Corner||P250,000 – P590,email@example.com|
|Hong Kong Style Fried Noodles||P150,firstname.lastname@example.org|
|Mister Donut||P200,000 – P400,email@example.com|
|Mr. Softy Ice Cream||P300,000||Apply via Security Bank Franchise Loan|
|Khaleb Shawarma||P850,000 – P2,700,firstname.lastname@example.org|
|Rice in a Box||P300,email@example.com|
|Master Siomai||P50,000 – P280,firstname.lastname@example.org|
|Andok’s Litson Manok||P300,000 – P500,email@example.com|
|Shawarma Shack||P680,000 – P3,000,firstname.lastname@example.org|
|Candy Corner||P350,000 – P650,email@example.com|
|Famous Belgian Waffle||P550,000 – P730,firstname.lastname@example.org|
|Lydia’s Lechon||P750,000 – P3,000,email@example.com|
|Lots’a Pizza||P350,000 – P600,firstname.lastname@example.org|
|Ate Rica’s Bacsilog||P450,email@example.com|
|Bibingkinitan||P570,000 – P845,000||(02) 8-464 646|
|Potdog||P365,000 – P600,firstname.lastname@example.org|
|Sam’s Everything on Sticks||P300,email@example.com|
|Baliwag Lechon Manok||P250,000 – P750,firstname.lastname@example.org|
|Goldilocks||P800,000 – P1,200,email@example.com|
|R Lapid’s Chicharon||P300,firstname.lastname@example.org|
2. Convenience Store Franchise
Franchise Capital: starts at Php 1,000,000
Going to malls to do grocery shopping can be a little tedious. This is why tons of Filipinos opt to go to convenience stores to buy food, drinks, and other necessities.
Convenience stores and mini-groceries are some of the most popular franchise businesses in the country. Its biggest players include 7-11, Ministop, and FamilyMart.
The beauty of franchising a convenience store is that you can set it up in any place, but it is recommended to build one in residential and commercial areas. You can also set up a:
Meat is a staple food in the Philippines. Considering this, having a meat shop is a great business. You can sell beef, pork, and chicken in the meat shop.
You can also sell sausages, hotdogs, and other processed meat. If you want to expand, you may even offer imported cold cuts and cheeses.
Here are some of the most popular convenience store franchises in the Philippines:
|7-11||P1,000,000 – P5,000,email@example.com|
|Monterey Meat Shop||P1,500,000 – P2,800,firstname.lastname@example.org|
|Ministop||P1,000,000 – P3,000,email@example.com|
|Family Mart||P4,000,000 – P8,000,000||http://familymart.com.ph/franchise/|
|San Miguel Food Avenue||P1,500,000 – P2,500,firstname.lastname@example.org|
|Magnolia Chicken Station||P1,000,email@example.com|
3. Retail Franchise
Franchise Capital: Php 500,000 to Php 5,000,000
Retail is a booming industry in the Philippines that allows entrepreneurs to sell almost anything to the public. This is because Filipinos are becoming more educated, and they know exactly what they want.
With that said, having a simple retail franchise such as a shoe shop, clothing store, or appliance shop can be a good business.
|National Book Store||P6,000,000||www.nationalbookstore.com|
|Miniso||P16,000,000 – P20,000,firstname.lastname@example.org|
|Folded & Hung||P3,500,email@example.com|
|Hub Builder Center||P3,500,000 – P5,000,firstname.lastname@example.org|
|The Paper Stone||P100,email@example.com|
4. Restaurant Franchise
Franchise Capital: Starts at Php 800,000
Restaurants are probably the most sought-after retail business in the Philippine market because it is a necessity, especially now when people love to eat out and explore different food options.
It is also very profitable for entrepreneurial-minded individuals. Restaurant franchises are also extremely helpful when it comes to franchisee support.
Fast food is ingrained in Filipino culture. This is why there are tons of fast food franchises in the Philippines such as McDonald’s, Jollibee, Chowking, Greenwich, and Mang Inasal.
Having a restaurant business is considered to be the most practical business franchise to operate and it is definitely one of the most profitable franchises in the country.
Below are some of the best restaurant franchises in the Philippines.
|Jollibee||P25,000,000 – P55,000,000||https://www.jollibee.com.ph/Philippines/|
|McDonald’s||P32,000,000 – P42,000,firstname.lastname@example.org|
|Max’s||P15,000,000 – P22,000,email@example.com|
|Shakey’s||P18,000,000 – P25,000,firstname.lastname@example.org|
|Yellow Cab||P10,000,000 – P15,000,email@example.com|
|Tong Yang||P4,000,000||(02) 373-8621/23|
|Kenny Rogers Roasters||P13,000,000 – P39,000,firstname.lastname@example.org|
|Razon’s Halo-Halo of Guagua||P1,500,email@example.com|
|Sizzling Pepper Steak||P4,000,000 – P7,000,000||(02) 894-2000|
|Pancake House||P9,000,000 – P12,000,firstname.lastname@example.org|
|Mang Inasal||P12,000,000 – P18,000,000||https://www.manginasal.com/franchise/|
|Pansit Malabon Express||P1,000,email@example.com|
|Adobo Connection||P2,000,000 – P5,000,firstname.lastname@example.org|
|Goto King||P800,000 – P2,500,email@example.com|
5. Coffee & Cold Beverage Franchise
Franchise Capital: Starts at Php 100,000
Coffee and cold beverage franchises are in-demand types of franchising businesses that Filipinos seek, especially now that students and young professionals have more purchasing power.
You may open this type of business near a school or a commercial establishment. Aside from coffee, you may offer milk tea (extremely popular now), fruit juices, smoothies, and other beverages.
|Zagu||P370,000 – P450,firstname.lastname@example.org|
|Citrus Zone||P280,000 – P350,email@example.com|
|Nitro 7 Coffee||P250,firstname.lastname@example.org|
|Pure Nectar||P60,000 – P130,email@example.com|
|The Coffee Bean & Tea Leaf||P2,500,firstname.lastname@example.org|
6. Water & Gas Refilling Station Franchise
Franchise Capital: Starts at Php 200,000
Every Filipino household needs gas and water to survive. Having a water or gas refilling Station Franchise near a residential area can become a good business venture.
The key is to try your best to build a relationship with people so they can be repeat customers.
|Crystal Clear Water||P600,000 – P800,email@example.com|
|Phoenix Super LPG||P350,firstname.lastname@example.org|
|Brent Gas||P600,000 – P1,200,email@example.com|
7. Beauty & Wellness Franchise
Franchise Capital: Starts at Php 350,000
You’ll be surprised at how much Filipinos are willing to spend when it comes to beauty products and services.
These franchises are among the most profitable businesses because they provide customers with instant gratification. There is also a high likelihood for repeat customers.
Spa & Salon
Two franchise businesses Filipinos love include the spa and salon. Filipinos are known to pamper and spoil themselves. If you have a spa or salon, you can surely make a lot of money.
You may offer haircuts, hair color, hair treatments, as well as body scrubs, massages, waxing, and many more.
The perfume industry in the Philippines isn’t immensely saturated yet so this is a great opportunity for you. You can sell colognes, oil-based perfumes, solid perfumes, and other types of fragrances. One popular perfume chain in the country is Aficionado.
The Philippines is one of the biggest consumers of beauty products in the world. For example, social media (especially TikTok) is filled with beauty content.
You may franchise a company that offers cosmetics products such as makeup, skincare, and nail care. Just make sure the company has a great USP. For example, it must be cruelty-free, or vegan.
These qualities are important since many Filipinos, especially the youth, are becoming more conscious of the brands they buy.
|Thai Royale Spa||P350,firstname.lastname@example.org|
|Orange Blush Salon||P400,email@example.com|
|The NailXperts Spa||P130,firstname.lastname@example.org|
8. Vending & Service Machines Franchise
Franchise Capital: Php 20,000 – Php 300,000
Vending machines are a legitimate business in the Philippines (especially with the advent of cashless payment systems). You can find a lot of these business establishments in malls, schools, offices, airports, and other places.
You can offer sports and energy drinks, snack food, hot food items, and many more.
Below are some ideas to get you started:
|SleepBox Hotel||Starts at P300,email@example.com|
|Positive Living: Vending Massage Chair||P500,firstname.lastname@example.org|
|PhilVending: Vending Machines||P15,email@example.com|
|AGN Wi-Fi Vendo Machine||P24,firstname.lastname@example.org|
9. Home & Personal Services
Franchise Capital: Starts at Php 200,000
Home and personal services can be a good business, especially if you have a knack for this industry. Here are some examples:
Filipinos are quite thrifty and would prefer to restore old and broken shoes instead of buying new ones.
This is why this type of business is one of the most promising franchises in the Philippines right now. If you set up your shoe repair store in malls, it can bring you big bucks.
Everybody needs to wash their clothes, but not everyone has the time to do it. For this franchise business, you may offer drop off, pick up, and delivery.
Cleaning services thrive in the Philippines, especially after COVID-19 hit the country. For this business, you may offer residential and commercial cleaning, as well as carpet and furniture deep-cleaning.
More people are shifting from old furniture to new and trendy ones. For this franchise business, you may offer portable tables, chairs, and other furniture.
|Quicklean||P2,400,000 – P10,000,000||Franchise@quicklean.com.ph|
|Clean Zone PH||P250,000 – P750,email@example.com|
|Paras Alter Station||P500,000 – P1,000,000||0925-83 PARAS (72727)|
|Goodhand Security Products||P200,000 – P2,000,firstname.lastname@example.org|
10. Financial Services Franchise
Franchise Capital: Starts at Php 100,000
This type of franchise business is very easy to manage, and it is also relatively low cost.
Remittance & Bills payment centers
The Philippines has a large remittance sector, especially when it comes to money sent back by OFWs all around the world.
With that said, there are a lot of opportunities to open a remittance shop anywhere in the country, even in far-flung areas. And if you give your customers an additional service in the form of bill payments, this can become a very profitable business.
|ML Express (M Lhuillier)||P99,email@example.com (Luzon)|
|Palawan Express||P99,000||(048) 433 4110|
11. Education Franchise
Franchise Capital: Starts at Php 400,000
Education franchise is one of the biggest opportunities today in the Philippines. The school market is not yet saturated and most Filipinos are eager to learn new skills.
One great thing about franchising schools and training centers is that you don’t need to worry about modules and staff training since the franchisor will take care of it.
This can be a very effective business, especially if you offer opportunities for internships (abroad or local). Some cooking school programs that are popular in the country include baking, pizza making, healthy cooking, vegan cooking, and many more.
Training centers, particularly those that offer medical and technical training, are very much in demand.
Daycare centers and kids care centers are good businesses especially if you have the right resources to do this. You may cater to kids of different ages, and also offer services to children with special needs.
This is one of the most popular businesses you can offer in the Philippines because a lot of Filipinos love sports. You may open a sports academy for running, boxing, swimming, and martial arts. The key is to offer both group and personal training sessions.
|Seriously Addictive Math (SAM)||P250,firstname.lastname@example.org|
|Eye Level (Math & English)||P3,000,000||https://nafranchise.myeyelevel.com/|
|AMA Education System||P1,500,000||https://amafranchise.amaes.edu.ph/|
|Tinker House||P800,000 – P1,000,email@example.com|
|The Reading Station||P400,000 – P800,firstname.lastname@example.org|
|Logiscool||P2,000,000 – P2,700,000||https://www.logiscool.com/en/franchise_business|
|ActionCOACH||P750,000 – P2,200,000||https://www.actioncoach.com/franchise-2/get-franchise/|
|Ahead Tutorial & Review||P1,500,email@example.com|
12. Automotive Services & Car Wash Franchise
Franchise Capital: Starts at Php 300,000
The Philippine automotive industry is continuously growing. From the latest car models to high-end motorbikes, there’s a big market for this type of business.
It is recommended to open an automotive franchise service near a school, toll gate, or wherever there is a lot of traffic.
Bike & Motorcycle
A lot of young people are choosing this mode of transportation so entrepreneurs like you can open a business catering to this industry.
You may sell bikes and motorcycles, and you may also offer services such as repair, quality control inspection, and other motor replacement services.
|ZORRO Contactless Car Wash||P4,800,firstname.lastname@example.org|
|Nice Day Car Wash||P395,000||https://www.nicedaycarwash.ph/franchising|
|Speedy1 Car Wash||P400,000 – P4,000,email@example.com|
|Safe Ride Car Rental||P3,600,firstname.lastname@example.org|
13. Healthcare & Pharmacy Franchise
Franchise Capital: Starts at Php 300,000
After the pandemic, Filipinos are realizing that healthcare is no longer a luxury, but a necessity. You may open a drugstore and sell prescription drugs and other over-the-counter drugs.
When it comes to healthcare centers, you may offer medical services such as human immunodeficiency virus (HIV) testing and counseling, medical laboratory testing, and other medical services.
|Farmacia Ni Dok||P350,email@example.com|
|The Generics Pharmacy||P210,firstname.lastname@example.org|
|MedLine Dialysis Center||P15,000,email@example.com|
|Medicus Diagnostic Test & Medical Services||P200,000 – P800,000||(033) 337-2665|
14. Pet Services Franchise
Franchise Capital: Starts at Php 100,000
The pet industry is one of the growing markets in the Philippines. Considering the increasing rate of pet owners and the pet population, you can start a pet grooming business, a pet daycare, a pet transportation service, or a veterinary clinic.
|The Pet Express||P50,firstname.lastname@example.org|
|One Fab Pooch||P1,500,email@example.com|
|The Dog Spa||P1,600,firstname.lastname@example.org|
15. Logistics & Courier Service Franchise
Franchise Capital: Starts at Php 80,000
With online shopping on the rise, there are a lot of opportunities when it comes to opening a courier and shipping service.
You may offer international shipping, as well as local shipping. Some of the most popular franchises include LBC, J&T, Ninja Van, and JRS.
|TokTok||P58,888 – P288,email@example.com|
16. Computer & Electronic Services Franchise
Franchise Capital: Starts at Php 150,000
The Philippines is a tech-savvy nation, and most people utilize technology as part of their daily lives. As a result, there’s a lot of demand for computer and electronic services.
The business can thrive due to the increase in the number of internet users, especially near schools.
Internet connection is also very affordable in the Philippines so this is a low-cost franchise business. You just have to charge customers according to time.
Ink refilling stations
Ink refilling stations are a very profitable business opportunity in the Philippines, especially if you cater to huge corporations and businesses.
The Philippines has a very competitive mobile phone market so there is a lot of opportunity to create a business for prepaid load, and even RFID.
|Ink2Go||P150,00 – P300,firstname.lastname@example.org|
|TNC Cyber Cafe||P1,500,email@example.com|
|Inkrite||P200,000 – P400,firstname.lastname@example.org|
|PC Clinic||P750,000 – P1,000,email@example.com|
17. Gym & Fitness Services Franchise
Franchise Capital: Starts at Php 2,000,000
This type of business is one of the most successful businesses in the Philippines. The reason is simple: Filipinos want to be fit and healthy.
You may open a small gym and offer training programs, yoga classes, and other fitness activities. Some of the most popular franchises you can explore include Anytime Fitness, and Gold’s Gym.
|AnyTime Fitness Gym||P7,150,000 – P15,625,000||https://www.anytimefitness.ph/franchise-opportunities/|
|Elorde Boxing Gym||P2,000,firstname.lastname@example.org|
|Gold’s Gym||P5,000,000 – P30,000,000||https://www.goldsgym.com/franchise/|
18. Business Services Franchise
Franchise Capital: Starts at Php 280,000
People want to be productive so they turn to business services to save time and resources.
The Philippine travel and tourism industry is very much in demand now that COVID-19 is not a major concern anymore.
With a lot of tourists coming to the country, you can franchise a successful travel agency that offers tour packages. You may also cater to Filipinos who want to travel abroad.
This is one of the easiest businesses in the Philippines. You may offer office supplies such as ID cards, business cards, personalized pens and stationery, toners, and printers, among many others.
Printing is also another lucrative franchise opportunity in the Philippines. You may offer printing for tarpaulins, t-shirts, brochures, and flyers, among others.
|SMB Travel & Tours||P100,000 – P300,email@example.com|
19. Fashion Franchise
Franchise Capital: Starts at Php 1,000,000
Filipinos want to look good, which is why fashion franchises are always in-demand year-round. You can also start a profitable business selling clothing, accessories, and other fashion products.
Jewelry is also one of the most popular products you can sell in the Philippines. The market is big, and you may also offer services such as jewelry cleaning.
|Plains & Prints||P3,000,firstname.lastname@example.org|
|Marithe Francois Girbaud||P1,000,email@example.com|
|Regal Jewelry Collection||P150,000 – P450,firstname.lastname@example.org|
20. Gas Stations Franchise
Franchise Capital: Starts at Php 2,000,000
A gas station is also one of the biggest businesses you can start because it is in demand. Because petrol prices are rising, you will have a competitive edge if you open this type of franchise.
|Petron||P1,000,000 – P9,000,000||(02) 884-9251 (Luzon)|
(32) 3447341 to 44 loc. 50158 (Visayas and Mindanao)
|Phoenix Petrolium||P4,500,000||1-800-10-PNX FUEL (769-3835)|
|SEAOIL||P2,000,000 – P8,000,email@example.com|
Top Franchise Business Opportunities in the Philippines
We’ve gathered the best franchise business opportunities below.
The ultimate Filipino fast food chain in the Philippines dominates with over more than 1,500 stores in 17 countries. Because really, who could resist that langhap-sarap chicken joy? (clue: not us!)
Capital Investment: Php 25-55 Million per store
How to Franchise Jollibee:
- Head over to http://www.jollibee.com.ph/investors.
- Download and fill out the application form.
- Send a letter of intent to Jollibee, including your proposal address and contact details.
- Send a location of the map of your proposed store site.
- Show a legal document that proves that site is under your name.
- Send your detailed resume to Jollibee.
- Wait for your application to be processed. This usually takes 3-4 months.
- Jollibee Foods Corporation, Franchising & Events Department, 9th Floor Jollibee Plaza, #10 F. Ortigas Jr. Road, Ortigas Center, Pasig City 1605
- (632) 8634-1111 (telephone)
- (632) 8633-9504 (fax)
This global fast-food giant has over 655 stores in the Philippines, and over 40,000 stores worldwide. They serve around 69 million people daily.
Franchise Fee: $45,000 USD
Capital Investment: up to P32 million to P60 million per store
How to Franchise Mcdonald’s:
- Submit a letter of intent with a comprehensive resume to firstname.lastname@example.org.
- Undergo the interview process.
- 17th Floor Citibank Center Bldg., 8741 Paseo de Roxas St., Makati City, Philippines
- 888-500 loc. 5000
7-11 is an iconic convenience store that is a go-to for folks needing all sorts of stuff on a 24/7 basis. This convenience store also serves food.
Franchise Fee: P600,000
Capital Investment: P3.5 to P5 million
How to Franchise 7-11:
- Contact 7-11 Philippines head office.
- Prepare your site and go through a three-level interview process.
- Sign the documents.
- Attend a one-month training.
- 7-11, 7/F Columbia Tower, Ortigas Avenue, Mandaluyong City
This globally-recognized oil company started its Filipino roots decades ago. They even had a PBA team around the ’80s and ’90s.
Franchise Fee: n/a, you only have to pay a monthly royalty fee for gas stations with Select Shops and or Lube Bay/Service Bays
Capital Investment: P5 to P8 million
How to Franchise Shell:
- Visit the Shell Philippines website to download the application form.
- Email your application form to email@example.com, with your details and proposed location.
- Be ready to answer the application form questions.
- (02) 8789-3516
Petron is a local oil refinery that supplies almost half of the country’s demand.
Capital Investment: P4 to P9 million
How to Franchise Petron:
- Submit a letter of intent with your details, lot plan, vicinity map, and Transfer Certificate of Title.
- If approved, undergo a 4-week dealer management course
- (02) 884-9251
For Luzon Applicants
- Fax: (02) 884-0950 or (02) 884-0940
- Tel. No.: #PETRON (#738766)
- Ground Floor, San Miguel Corp. (SMC) Head Office Complex, 40 San Miguel Avenue, Mandaluyong City
For Visayas and Mindanao:
- Petron Corp. Mandaue Terminal, Looc, Mandaue City
- Fax: (032) 345-5616
- Tel. No.: #PETRON (#738766)
This is one of the leading food carts in the Philippines, with over 720 stores. This company also owns other brands like Black Pearl, Buko Loco, and House of Fruitas, among many others.
Franchise Packages: P300,000 to P1.5 million
How to Franchise Fruitas:
- Fill out the application form.
- Submit a letter of intent, a vicinity map of the site, and photos of the site.
- Submit the application here.
- 60 Cordillera Street, corner E. Rodriguez Sr. Avenue, Brgy. Doña Josefa, 1113, Quezon City
- +63.2.8330.2889 (Nationwide)
- +63.939.101.0101 (Luzon)
- +63.947.101 (Visayas and Mindanao)
7. Potato Corner
With branches in 11 countries across the globe, this franchise is one of the most popular French fries businesses in the country. It has been operating for over 25 years.
Franchise Fee: Starts at Php250,000
How to Franchise Potato Corner:
- Submit a letter of intent.
- and application form with 1 valid ID.
- Fill out your marketing study.
- Submit a location offer sheet.
- 869 Katarungan Street, Barangay Plainview, Mandaluyong City
- (02) 531-9891 loc. 112
- 36 Block 6, Barangay Montevista, Bacolod City
- (034) 435-0712; (034) 707-9691
- Master Franchisee: Porfin Trading Corporation 386-C Tres Borces Extension, Mabolo, Cebu City
- (032) 231-6040
- 505 Ayala Compound, Aguho Street, Juna Subdivision, Davao City
- (082) 285-7355
With hundreds of stores in the Philippines, Zagu offers a wide array of mixed shakes that range from fruit flavors to coffee-inspired flavors. They also offer tons of add-ons such as crystals, mongo beans, pearls, choco bits, and corn kernels.
Franchise Fee: P650,000 to P850,000
How to Franchise Zagu:
- Fill out the initial questionnaire form here.
- Go through an interview process.
- Submit your proposed location.
- 52 West Capitol Drive, Bo. Kapitolyo Pasig City, Philippines
- 0918 – 8889248 (SMART)
- 0917- 8098043 (GLOBE)
- 0923-4563586 (SUN)
9. Master Siomai
This franchise business has seen phenomenal success in the past decade. With over 800 outlets in the country, it has cemented its status as an excellent food stall that caters to various markets. Plus, their Japanese siomai is hard to beat (at its price point!).
Franchise Fee: starts at Php 280,000
Capital investment: Around 300,000
How to Franchise Master Siomai:
- Download the application form here.
- Look for a location.
- Schedule a site evaluation with Master Siomai.
- Hire your crew, and select the ones who will attend the orientation and training.
- Sign the agreement.
- Wait for your food cart to be delivered.
- (02) 8-281-3635
- (02) 8-709-5288
- (02) 8-709-0901
10. Western Union
This is one of the most successful money transfer businesses worldwide. It has over 8,400 agent locations in the Philippines.
Franchise Fee: n/a. However, you must have an existing service-oriented/retail business to apply as an agent.
Capital Investment: Depends on your computer, printer, and internet connection.
How to Franchise Western Union:
- Apply here.
- Wait for a salesperson to contact you.
- If approved, start your training.
- 02 888-1200 (Metro Manila)
- 1-800-1-888-1200 (toll-free nationwide for PLDT Lines)
- 1-800-9-888-1200 (toll-free nationwide for Globe Lines)
- +632 888-1200 (Overseas)
11. PCSO Lotto
The Philippine Charity Sweepstakes Office or PSCO is the government agency that raises funds for different charities of national character.
It holds races, lotteries, sweepstakes, and other activities. This is a franchise that will do well in both urban and rural areas.
Franchise Fee: up to P512,000
How to Franchise PCSO Lotto:
- Submit a letter of intent with your location map, and photos for the site.
- Wait for PCSO’s approval. Then, start the construction of your lotto booth.
- Sign the contract.
- PCSO Main Office, PICC Secretariat Bldg, CCP Complex, 1307 Roxas Blvd., Pasay City
12. Dunkin Donuts
Established in the 1950s in the US, Dunkin Donuts has made a mark in the Philippine market. It is dubbed as the “pasalubong ng bayan.” This business serves donuts, coffee, and other food items that are incredible for snacking.
Franchise Fee: Starts at Php250,000
How to Franchise Dunkin Donuts:
- Submit your application to Dunkin Donuts, together with your proposed location, photos, and vicinity map.
- Submit a letter of intent and your contact details.
- Reliance Corner Sheridan Streets, Mandaluyong City, Metro Manila, Philippines
13. Bayad Center
Meralco’s Bayad Center is another great franchise option. It caters to people who want to pay bills with ease.
Franchise Fee: Php350,000 for 5 years +12% for VAT
Capital Investment: Around 600,000 minimum cash bond, 120,000 for equipment, and P130,000 for site renovation
How to Franchise Bayad Center:
- Contact Bayad Center directly.
- CIS Bayad Center Inc., Business Solutions Center Meralco Complex, Ortigas Avenue, Pasig City, Philippines
Toyota is one of the most popular and reliable car brands in the country with a stellar reputation.
However, this dealership requires a huge investment. Your ROI also largely depends on the market condition in your location.
Franchise Fee: Php50 to 70 million
Capital Investment: Depends on the facility and location (Toyota La Union dealer said it can amount to Php 100 million in provincial branches and more for Metro Manila)
How to Franchise Toyota:
- Submit a letter of intent to a Toyota distributor.
- Propose your terms of the agreement.
- Toyota Special Economic Zone, Santa Rosa-Tagaytay Highway, Sta Rosa City, Laguna 402
- 31/F GT Tower International, 6813 Ayala Ave.,Salcedo Village
- (02) 8819-2912
Shakey’s is the home of thin-crust pizzas and world-famous mojos, with over 220 stores nationwide. With over 4 decades of experience and an incredible store design, it’s one of the best franchise choices in the country.
Capital Investment: P18 to P25 million including franchise fee, building, pre-operating expenses, and others. The franchise grant is only for 10 years, with an option to renew for 5 years.
How to Franchise Shakey’s:
- Submit a letter of intent addressed to Shakey’s Franchising Department.
- Submit an application form.
- Undergo the screening, validation, and review processes.
This is a successful manufacturer and distributor of clothing, cosmetics, and accessories in the Philippines, with over 500 stores and outlets nationwide. This brand is also famous for its visual merchandising and marketing strategy.
Franchise Fee: P1 million
Capital Investment: up to P10 million
How to Franchise Bench:
- Contact Bench directly.
- Bench Tower 30 Street, Corner Rizal Drive, Crescent Park West 5, Bonifacio Global City, Taguig City
17. Minute Burger
Burgers are well-loved in the Philippines, especially for those constantly on the go. Through the years, many burger chains have come and gone, but Minute Burger remains a favorite of Filipinos thanks to its affordable offers.
Franchise Fee: P150,000
Capital Investment: up to P700,000
How to Franchise Minute Burger:
- Attend the MB101 and MB102.
- Submit a letter of intent, as well as an application form.
- Go through a series of interviews.
- 4 Dama de Noche St. UPS 4, Paranaque City, Philippines
18. Tokyo Tokyo
This is the leading Japanese fast food brand in the Philippines with almost 70 branches. They offer affordable Japanese staples such as bento meals, Katsudon, Oyakodon, and their famous red iced tea.
Franchise Fee: P1.4 million
Capital Investment: P14 million
How to Franchise Tokyo Tokyo:
- Submit your letter of intent and location map of the proposed site.
- Wait for your site to be validated within 3 weeks.
- Undergo the screening process.
- Wait for the approval.
19. Yellow Cab
With more than 50 branches in the Philippines, Yellow Cab is considered a staple in many cities for pizza lovers. It serves yummy New York-style pizza, chicken, and pasta.
Franchise Fee: 1.25 million
Capital Investment: up to P15 million
How to Franchise Yellow Cab:
- Submit a letter of intent, with your proposed site location, area development plan, and site map.
- Wait for the application form to be issued by Yellow Cab.
- Go through an interview process.
- 11/F Ecoplaza Building,2305 Chino Roces Ave. Ext., Makati City
This restaurant started in 1945 and since then, it has popularized “Sarap to the Bones” which will always have a soft spot for Pinoys.
Franchise Fee: P2 million
Capital Investment: P14 to P22 million
How to Franchise Max’s:
- Submit a letter of intent, with your proposed site location, area development plan, and site map.
- Wait for the application form to be issued by Max’s.
- Go through an interview process.
- 11th Floor EcoPlaza Building, 2305 Chino Roces Avenue Extension, Makati City 1231 Metro Manila, Philippines
21. Tong Yang
If you love shabu-shabu (the Japanese hotpot food kind, okay?) then you’ve probably dined at Tong Yang at least once.
They are one of the most (if not the most) popular places to indulge yourself in some hotpot goodness. Tong Yang is targeting more franchisees for Metro Manila, Visayas, and Mindanao.
Capital Investment: starts at P4 million
How to Franchise Tong Yang:
- Contact Tong Yang directly.
- 1498 Quezon Avenue, Quezon City
22. ML Express
M Lhuillier is a business that provides quick and convenient fund services all over the country. It mainly caters to Filipinos who do not have bank accounts.
Franchise Fee: P99,000
How to Franchise ML Express:
- Fill out the ML Express inquiry form.
- Remit the investment.
- Renovate your location.
- firstname.lastname@example.org (Luzon)
- email@example.com (Visayas)
- 0947-999-9353 (Smart – Luzon)
- 0917-800-3056 (Globe – Luzon)
- (02) 712-3449 (Landline/Fax – Luzon)
- 0947-999-9352 (Smart – Visayas)
- 0917-821-5045 / 0917-811-6304 (Globe – Visayas)
- (032) 416-3957 (Landline/Fax – Visayas)
This is another 24/7 convenience store franchise that is targeted toward people in residential and commercial areas. It has over 10,000 branches in Southeast Asia.
Franchise Fee: P170,000
How to Franchise Alfamart:
- Contact SM Investments directly.
- (02) 857-0100
- 10th Floor, One E-Com Center Harbor Drive, Mall of Asia Complex Pasay City 1300, Philippines
24. Baliwag Lechon Manok
All over the country, Filipinos love lechon manok whether it’s for birthdays, Christmas, New Year’s eve, or even regular family dinners. This is exactly why starting a Baliwag Lechon Manok is an incredible idea.
Franchise Fee: P250,000 to P750,000
How to Franchise Baliwag Lechon Manok:
- Contact Baliwag Lechon Manok directly.
- (02)654-2929, (02)654-9001, (02)654-9002
- Head Office, # 1 Mercedes Avenue, Pasig City, Philippines
25. TNC Cyber Café
This is the leading cyber café chain in Southeast Asia. It is popular among gamers.
Capital Investment: starts at Php500,000
How to Franchise TNC Cyber Cafe:
- Contact TNC on Gmail, and request a copy of their questionnaire.
- +63 (02) 7120089 | +63 (02) 7310179
- CVJ Bldg, 11 A Nicanor Roxas ST., La Loma, Quezon City, 1114 Metro Manila
First launched in Connecticut in the 1960s, Subway has become a global favorite with over 45,000 branches in over 100 countries. It is the biggest sandwich chain in the world.
Franchise Fee: up to P882,000
Capital Investment: up to P10 million
How to Franchise Subway:
- Fill out the franchise form here, and submit your proposed location.
- If approved, attend the training sessions.
- 4/F Unit 2C, One E-Com Building, Ocean Drive, Mall Of Asia Complex, Pasay City, 1300
How to Choose the Right Franchise Business for You
Before we proceed to this section, we want to make it clear that a franchise will not guarantee you success. However, franchisors can give you a head start so you can learn the ropes in a field that you are not familiar with.
Your success in the franchise industry largely depends on careful planning and research. The following are some of the things you must do before choosing a franchise business.
Step 1: Know your personal goals
Before you choose a franchise, you must first know your personal goals. This will help you narrow down your choices.
Will you be content with just a part-time business, or are you aiming for a brick-and-mortar franchise? Do a self-assessment and think about your strengths and weaknesses.
You must be honest with yourself if you will be able to handle the operations of the business. You may be a good salesperson, but will you be a good manager?
If you are a good manager, will you have time to do the actual work?
Step 2: Take your time in researching
If you want to know if a franchise is a viable business opportunity for you, don’t rush into things. Take your time to weigh its pros and cons carefully.
We know it can be extremely exciting to set up your store immediately, but researching will ensure that you won’t end up wasting your time, effort, and money. To ensure you research well, do the following steps:
a. Join franchising events
You can visit almost any event that is hosted by franchising companies. There, you will meet entrepreneurs who can help you make the right decision.
You may also meet some franchisees who can give you valuable information on what you will experience once you become a franchisee.
b. Join franchising groups
Joining groups and interacting with other franchisees and current franchisers will give you more insights into the industry.
You may also get recommendations about the best franchises to invest in. Online groups and in-person clubs may also enable you to find valuable information on store locations, rent, and franchising requirements.
c. Read the fine print carefully
Compare companies not just based on cost but also the inclusions and requirements. Some franchising companies offer a more comprehensive training program than others.
For example, staff training and store equipment in particular are important factors because these will determine how well you can maximize your franchise’s potential.
Step 3: Factor in your interests and strength
The third step is to look at the type of business that matches your interest and strength. Are you good at management?
If so, you may focus on computer technology and retail. Are you good at customer service? Then you may go into restaurants or hotels, among others.
Step 4: Take your budget into consideration
Before choosing a franchise business, take a look at your budget. If you can release a large capital, you may invest in a well-known chain such as Jollibee.
On the other hand, if you are a first-time entrepreneur, you may want to choose a low-cost franchise business.
Keep in mind that you don’t need to spend a lot of money to get a profitable business. There are now micro franchisees that you can invest in for as little as P100,000 to P500,000.
If your available capital isn’t enough to start your target franchise business, consider getting a bank loan to fill in the gap. Banks like BPI and Security Bank offer franchise business loans to franchisees of their partner merchants.
Related: 10 Ways to Raise Funds for your Business Idea
Step 5: Create a shortlist of the franchises that piqued your interest
With the information you have gathered, it is now time to create your shortlist. Pick around 10 to 15 franchises to start with.
Do not rush this process and allow your emotions to be in control. If you are too excited about your business and choose a franchise without evaluating the market, you may end up with a business that has a limited market share and low demand. Before deciding on a franchise, take a step back and let your head rule your heart.
From your shortlist, eliminate those businesses that don’t fit your criteria. Then narrow down your choices based on the price, your financial capacity, and your skills.
Step 6: Do the math
After narrowing down your choices, it is time to crunch the numbers. Determine how much money you will need to start the business. This does not only include the franchise fee, but also your wages, rent, and other monthly expenses.
Then, try to assess how much time you must wait before getting your capital back.
If you don’t know how to do this yourself, seek professional help. After analyzing the figures, do you still want to proceed with the plan?
What if you do not see yourself earning enough to cover your monthly expenses? Then it’s time to reconsider your options.
Related: How to Buy a Business in the Philippines
Step 7: Do your due diligence
Due diligence is a key stage in your entrepreneurship journey. If the company processes its franchisees poorly, they may not be receptive to the support you need. This can lead to failure.
But what does due diligence mean? Take a look at the things you should do below.
a. Research about the inclusions of the franchise
After you have received information from the company, it’s time to dig deeper. Research the cost of equipment, how much franchise fee you need to pay, and how much capital you will need for your first year.
Also, try to see what is included in the franchise fee. Does it include rent or the building? What about marketing and staff training?
b. Research the support system of franchises for entrepreneurs like you
Make sure that the franchise you will buy into has a good support system for entrepreneurs.
Look for franchises that offer business management classes and workshops to help you become more efficient. This will help you run the business better.
c. Assess the company’s reputation
Do not just give priority to the brand name. The company behind the brand is also very important.
- How long has the company been in business?
- How many branches do they have?
- Are they currently expanding?
- Do they have a good track record?
- Do they have a loyal customer base?
d. Look for reviews or talk to franchisees
You may also talk to the current franchisees to get their feedback. Ask them if they have been given support by the franchisor.
Are they happy with their income? What about the ease of operation? Did the franchisor help them achieve their business goals?
Reviews and testimonials from franchisees will give you a clearer picture of what your franchisee experience will be.
e. Schedule on-site visits
Before signing a franchise agreement, you must first visit the branch personally. This step will give you a feel of what the business is like.
You will also see how the employees interact with customers, how the business is run, and how the business is managed. An in-person visit will also allow you to assess if the place is conducive to your liking.
f. Research what people think about the business
To know if a franchise will be successful, you must also look at the market size and demand for the product. Looking at how people feel about the business will help you know how your potential customers will respond to your business.
To find out how people feel about a business, you may browse the Internet or read reviews or look for comments in forums. You may also ask your peers if they see themselves becoming customers of your franchise.
g. Check the competition in your area
If your franchise business has a lot of competitors, ask yourself if you have what it takes to beat them. Study the weaknesses of those businesses and capitalize on them.
If you think you have what it takes, then you may move forward with the franchise plan.
h. Check if the company is facing lawsuits
Before buying a franchise or signing a contract, check if the company is facing lawsuits and if they have any pending cases. Look if there is a history of legal issues.
If the company has a negative history, then you may want to think twice before making a decision.
Related: Common Scams in the Philippines
i. Check if the company is accredited by the government
If you are planning to invest your hard-earned money in a franchise, check if the company has the seal of approval from the government. This will ensure that the company is legitimate and that your investment is safe.
Check if the company is registered with the Securities and Exchange Commission (SEC) and with the Department of Trade and Industry (DTI), as well as with the Bureau of Internal Revenue (BIR). Also, find out if they have the necessary permits and accreditations to operate.
They must also be licensed with specific government agencies depending on their industry. For example, food franchises must be registered with the Food and Drug Administration, and money transfer franchises must be registered with the Bangko Sentral ng Pilipinas.
Another way to verify the legitimacy of a franchise brand is to check its membership with reputable franchise groups in the Philippines. You may check the member directory of the Philippine Franchise Association, Association of Filipino Franchisers, Inc., or Filipino International Franchise Association.
j. Ask a lawyer to review the contract
The company should be able to provide you with a copy of the franchise agreement. Read them carefully and mark down your concerns and questions. Take the time to discuss these concerns and questions with the company.
Before you sign anything, take the time to ask a lawyer to review the contract. This will help you understand the terms and conditions you are signing up for. A lawyer will also be able to help you understand confusing legal jargon.
Step 8: Establish your expectations with the company
Once you buy into a franchise, you are entitled to a certain number of perks. Make sure that you have established your expectations with the company.
Communication is very important, so make sure that you will have a good relationship with your franchisor. If you and your franchisor have clear expectations, this will help your business run smoothly.
Important Questions to Ask the Franchisor Before Buying a Franchise
Once you have come up with your top three to five franchises, contact them and ask questions. This is your chance to get to know your potential franchisors and determine if you’re a good match professionally.
Treat it like a job interview. Although the franchisor provides franchising information on their website, you’ll want to dig deeper into the details of partnering with the company.
Here are the questions you should ask the franchisor to ensure a win-win situation for both parties:
- What are your criteria for selecting franchisees?
- How much is the total investment package?
- Are there any royalty, branding, marketing, or advertisement fees? If so, how are they computed?
- Can you describe your training program in detail?
- What ongoing support do you provide after the initial training?
- Do you provide assistance for site inspection, evaluation, selection, and construction? If so, do you charge an additional fee for this?
- How do you evaluate locations?
- What are your sales, marketing, and advertising approaches?
- How long will it take until I earn a profit?
- How much liquid operating capital is needed for sustaining the franchise until I get an ROI?
- How do you assist poorly performing franchise businesses? What will happen if mine fails?
- How many franchisees renew their contracts?
- What sets your brand apart from the competition? What’s your unique selling point?
- Do you provide territorial exclusivity to your franchisees? If so, how will my territory be protected from competing units?
- How do you handle disputes or conflicts between the franchisor and franchisee?
How to Apply for a Franchise Business in the Philippines
Found the perfect franchise business? Franchise application processes in the Philippines are fairly simple.
The hard part is waiting. To speed up your application, prepare all the required documents beforehand.
Franchise Application Requirements in the Philippines
You can find the specific franchise application requirements on the franchisor’s official website. But in general, here’s the list of documents you need when applying for a franchise:
- Letter of intent (Some franchisors have a downloadable template on their website.)
- Filled out franchise application form
- Valid government-issued IDs
- Resume of the applicant
- Details about the target location (address, site description, nearby commercial establishments, etc.) plus vicinity map and photos
Franchise Application Procedure in the Philippines
To give you an idea of what happens during a franchise application, here’s a quick walkthrough of the usual steps involved:
- Submit your documents to the franchisor via email.
- Wait for the franchisor to contact you for a meeting and/or site inspection schedule.
- Meet with the franchisor on the scheduled date. A franchise manager or representative will interview you and orient you on the franchising details. Make sure to ask the crucial questions listed in the previous section.
- After several meetings and evaluations, the franchisor will contact you again to inform you if you’ve been chosen as a franchisee. You’ll be given a copy of the franchise agreement or contract—review it thoroughly.
- Sign the contract if you’re okay with all the terms and conditions.
How to find a location for your franchise business
In most cases, the franchisor provides the necessary support and recommendation in choosing the perfect spot for your franchise business. But before that happens, you do need to come up with your own plan that you believe would generate solid customer traffic in the long run.
And to help you with that, consider the following steps:
1. Initial site research and inspection.
To get a “feel” of your chosen location, consider these factors:
- Site visibility and accessibility
- Potential customer base
- Density of population (within the area)
- Parking and traffic situation
2. Site Evaluation.
With the help of your franchisor, determine the following:
- Public transportation accessibility
- Allowed operating hours
3. Franchise Concept.
You need to make sure the place and its surroundings align with the overall concept of the business.
If you’re thinking of selling cold beverages, for example, you’d want a highly-accessible spot that sees plenty of foot traffic.
If you’re selling meat or poultry products, it should ideally be near subdivisions and living areas so customers (mainly households who need it for ulam) can easily drop by anytime.
4. Leverage resources and connections provided by the franchisor.
This could include anything from getting a favorable lease or a spot that would otherwise be not offered to other interested parties.
5. Search Online
You could also check out available commercial spaces through online real estate directories and marketplaces such as Lamudi, DotProperty, or FranchiseMarket.ph.
10 Tips for Franchise Success
1. Choose the right business for you.
Business owners who provide products/services that are focused on or related to their own interests or hobbies tend to do better. When choosing the franchise for you, lean toward your interests – but do keep in mind the demand for the products/services you will choose.
Recommended Reading: 100+ Profitable Small Business Ideas in the Philippines
2. Enhance your skills.
Although franchisors will teach you their system on how to operate their business, you still need to have essential business skills of your own. You have to know accounting basics, how to read and work with financial documents, or how to hire and fire employees. If you’re new to all of these, you have to consider taking classes. Doing research is a must.
3. Have a business plan.
Just because you have a franchise business selling products/services that have already appealed to people in the past doesn’t always guarantee that your business will go smoothly. You will still need a plan to grow your business. If you’re a novice who doesn’t know where to begin, you don’t have to be intimidated. You can simply start by setting goals and doing a financial projection for the next year.
4. Consult a specialist.
Getting advice from a specialist is recommended especially for new entrepreneurs. A specialist – one who knows the ins and outs of the industry well – can also help you polish your business plan. Another specialist you should consider is an attorney. Tax rules can become confusing for franchises, which is why having an attorney, preferably one who focuses on franchise laws, will be helpful in reviewing franchise agreement documents and potential red flags.
5. Think about your location.
The location of your business is crucial to its success. Choosing a location is one of the most important decisions you’ll make as a business owner. Consider factors like traffic patterns, parking, nearby stores, and check with the franchisor if you’ll be guaranteed protected territory – this means that no other franchise can open within a certain radius.
6. Focus on the quality of service.
Even if you have a solid business plan and have chosen a strategic location, the success of your business will still rely on customer experience. Employee-customer interactions can make or break any business, so focus on the quality of the service you provide. Hire staff that have a pleasing personality and are eager to meet the needs of your customers.
7. Never stop marketing.
Even though you’re selling products/services by an established brand, you still have to do marketing. Think about creative marketing schemes for your business. If you need people singing outside the store to attract customers, do so.
8. Can’t sell? Hire someone who can.
Not a lot of people are good with sales talks or even mingling with people. This may also relate to marketing and promotion. Or maybe you yourself are unavailable to do the hands-on selling. If you simply can’t do the selling, marketing, or promotion of your product, then just hire people who can.
9. Do networking.
Networking helps both in promoting your business and also learning from your peers. You can do this by attending seminars or expos for your product.
10. Know your industry.
Once you’ve launched your business, learn as much as you can about the industry. Study the trends and what drives the demand. Consider your competitors and maybe you can learn from them as well.
Franchise Business in the Philippines FAQs
Still got questions about franchise businesses? We’ll answer them below.
Can you transfer or sell your franchise business to another person?
This depends on the franchise agreement. Make sure to ask your franchise attorney about the terms and conditions of your franchise.
What types of franchise support are provided by Franchisors in the Philippines?
Most franchisors in the Philippines provide the following support:
- Sales training
- Marketing and PR
- Access to supplies
- Financial assistance
- Administrative support
- Proven business plan
- Location support
- Protocols and standards
- Ongoing communication
Is it better to invest in a franchise business than to start your own brand/business?
Franchise businesses usually have a higher success rate compared to startups. This is because they already have a proven business model that has contributed to their success.
Is success guaranteed when you franchise a business?
No. As with other business ventures, your success largely depends on the market condition, and your ability to lead your team. That said, your franchisor will surely help you achieve success.
What to do if your franchise business fails?
If your franchise business fails because the franchisor did not give you the support laid out in your contract, you may sue them for breach of contract.
But if your franchise business fails even if your franchisor helped you throughout your business journey, you may choose not to renew your contract after it expires. You may also request early contract termination from your franchisor.
What are the other initial costs associated with starting a franchise business?
The major initial cost associated with starting a franchise business is the initial investment.
How long does the process of becoming a franchisee typically take?
Depending on your franchise business of choice, it can take 2 to 6 months or more, including training.
How does a franchisee go about selecting the right location for their business?
There are a few things to keep in mind when choosing the location. This includes your target market and demographics, the visibility and ease of access of the location, and the competition in the area.
Are there any regulations or laws that govern the franchise industry in the Philippines?
Currently, there are no specific laws that govern franchising in the country. That said, franchise holders of MSMEs must have their agreements registered with DTI.
Disclaimer: All information listed in this article is for information purposes only. Although utmost effort was made to ensure accuracy of information on this website, readers must not solely rely on it in making any investment or financial decision since it does not take into consideration the risk tolerance, financial situation, investment goals, and experience of readers. It is best to consult a professional financial planner or your bank before investing to make a more informed choice and limit your risk exposure.
The Franchise Maker Website says
I’m interested in franchising a spa business.
Camille DS says
Hi we do offer franchising of Spa business. Please contact 09155048002
Jamie Cordon says
Out of all that you mentioned, I think water, food, and medicine franchises are the easiest to maintain because these are necessities compared to car washes and laundromats which you can do for yourself. Its nice that you added tips because I have friends whose businesses failed due to improper planning and managing. Thank you for sharing! By the way check this link for some information on franchising one of the leading drug stores in the country: http://tgp.com.ph/franchise. Hope it helps!
Rolly L. Bayaborda says
Interested in restaurant business where there will be someone to manage all the operation. Only we have some share as co-owner. Thank you.
Hi Sir Rolly,
You might be interested in franchising Adobo Connection. Staff are under agency and direct hired of the company. Our franchisees still have their time to enjoy and relax since the store is managed by those people. Should you want them replaced, you just have to coordinate with the company. You may reach me thru firstname.lastname@example.org for more details. 🙂
Hello Ms. Ria,
May I kindly ask how much is going to be the total investment in franchising Adobo Connections? How much is the franchise fee and is there any royalty? If you could please send details through this email: email@example.com
Target location would be near the school, so most likely the market would be students. Would this be feasible?
Camille Delos Santos says
Good Day Sir Rolly,
We can assist you for your requirements.
Please message or call us at 09155048002 for more details regarding restaurant business.
Thank you and best regards,
Erika Ann says
I feel like you can never go wrong with a food franchise. What do you think about franchising of convenience stores? I think those are always a good idea as well. I believe 7 11 decreased their franchise prices because of competition.
Mechelle Balita-an says
Thank you for your article, I got few ideas on franchising, please include me on your updates on my below mail.
Christian Morales says
Very well said. Upon reading the tips, I have a question for number 9.
What does “Networking” means?
hi ma’am Mechelle good day this is Ryan from food franchise philippines,if you want to know more about franchise business please call 09158722970
Hi… Good day ,
I want to start a 7-11 franchise in Manila as a foreigner. I would like to ask if it’s possible to invest and own a business as a foreign person in the Philippines.
Christine Alabado says
Hi. i want to start small business.. Can u help me?
Thanks a lot for all this information.
I want to open a business in the Philippines but i don’t have any idea on how to open a franchise for a low cost..
CriSha Villar says
Very informative! This is really help a lot for the beginners like me, thanks for a lot… God bless is all!!!
I own a bakeshop located in argao, cebu, it is already in operation, if you are interested to buy this business and start making 30-40 kpeso per month net profit with less owner involvement, please contact me to discuss.
It is not franchising, you will buy our bakeshop with the full rights without the need to pay franchising fee every 5 years.
30-40 kpeso per month is guaranteed net profit.
Serious business buyer please contact me.
Offered price: 2.5 million pesos.
All equipments, running bakeshop with full employees, we will share with you our sales figures and calculations of costs as a proof of profit.
Honest reason to sell this business is leaving the country.
Mary Jane says
Hi. I am from Cebu and planning to start bakeshop business. I am willing to discuss with you regarding this. You can email me in firstname.lastname@example.org. Hope to hear you the soonest. Thanks.
Mary Jane says
Hi. I am from Cebu and interested in your bakeshop. How to contact you. Please email me email@example.com. Thanks.
I am from Cebu as well, is this still available?
Roseline Marcelo says
Thank you for all your ideas. Looking to franchise in the future. Please include me in your updates. Thanks.
Rizaline De Vera says
Hi. I dont have any knowledge in bussiness, but i really do want to have one. Please help me what is it that easy to handle? Pls guide n help me. Thank you.
Camille Delos Santos says
Hi Rizaline, I can help and guide you starting your own business. Please call 09155048002
Jerald feliciano says
hi.. im jerald from bataan i want to start a small meat process products but i have no idea about it someone that can help me to start and discuss how to start please email me at firstname.lastname@example.org… thanks
Jerlyn Gumansing says
Happy Bagnet is one of the fastest growing and the FIRST and ONLY Self Service Bagnet Restaurant in the Philippines, with three branches and seven (7) more sites to launch in the next quarter of 2020 to happily serve our customers with their favorite mouthwatering, tasty and crunchy BAGNET dish – a true home for the original home cooked delicacy in the Philippines!
Ms. Jerlyn Gumansing, TheTopTreasure, Inc. is the Chief Executive Officer (CEO) of Happy Bagnet in the Philippines. Growing up in the province, she sold fish, fruits, rice to support her family of 6. Ever since she was a kid, she wanted to own a business. As a matter of fact, she worked while studying in a restaurant that would ultimately lead her to fulfilling her dream, to own her own restaurant.
At the heart of her continuous success, she and the entire team wanted to build their own business and so created Happy Bagnet. Ms. Gumansing personally believes in a family oriented and God-centered approach in managing the company, its partners and its customers. Coining our tagline, “Sarap at Home”, we want our customers to experience home dining experience by letting them serve their loved ones and at the same time, having the best meals of their lives.
TheTopTreasure, Inc. is backed up with its directors’ combined 20 years of experience in food, sales, and electronics industry thus we intend to be the FIRST and BIGGEST Self Service Restaurant Makers in the Philippines.
How to Franchise Happy Bagnet:
3F’s – Fast, Friendly and Phenomenal
We always strive to be fast in all aspects of our process with friendly approach to both customers and employees. Our cooking guidelines have made easy and should only have a maximum of five steps to make it more appealing and doable to both trainors and trainees. We strive to be friendly with our community as we want to show our love for God anywhere, anytime. We treat everyone as family. Everything that we do should be phenomenal and should exceed expectation from our customers and God. We always strive to do the right things not only at the face of law but first and foremost, at the face of God. At the end of the day, its between you and your God. As the saying says, “Do your ordinary works extraordinarily well.”
Be your OWN BOSS in the FIRST SELF-SERVICE BAGNET CHAIN Restaurant in the Philippines now!
Contact Details of Happy Bagnet:
Chief Executive Officer
4-150, Panapaan 4 corner Emilio Aguinaldo Highway,
Bacoor, Cavite, Philippines
Mobile Nos.: 0906-3623045
Evangeline Reyes says
Hi! I’m Looking for the Rameneshi Franchise contacts. Hit me up @email@example.com, or text or call 09175786471
Marvin J Migdol says
Hi! I am the founder and ceo of Nationwide Franchise Marketing Services (1971) and now semi-retired. I don’t want to buy a franchise but earn money like you- as a consultant, perhaps in Philippines. May I e-mail you my resume? I’ll be in Manila Sept. 14-23. Staying at Courtyard Marriott (business district) on Sept. 14-14 an d then to Hotel Jen by the bay. firstname.lastname@example.org Call
(972) 978-5487. Hope to meet you. Marvin Migdol
Camille Delos Santos says
Please consider my offer, we have more than 10 concepts to choose form. For more details please contact us at 09155048002 or you may send us an email: email@example.com
Interested to franchise email me at firstname.lastname@example.org
hi i read lots of blog about starting a business and I don’t know if I will put up my own business (still thinking what kind of business) or franchise a business. I’m working overseas so any advice what business I can start is much appreciated you can email me at email@example.com looking forward for any advice no scammer please.
Interested to franchise.
Please email me @ firstname.lastname@example.org
Philip Magkasi says
Good day, i will email you all the details that is pandemic proof business and continuously evolving.
as one of the OFW, most of us wants to go back home and start our own business and i am one of those. i prefer to have my own stationery shop so if someone could assist me pls. email at email@example.com.
as an OFW, most of us wants to go back home and start our own business. interesting article email at firstname.lastname@example.org.
INTERESTED TO FRANCHISE PLEASE EMAIL ME@email@example.com
Edralin Ate says
For those who want to put up NEGOSYONG BIGASAN, please call me at 0915 5690478 or you can shoot me an email at firstname.lastname@example.org . Thank you.
Dottie Dayagdag says
Hi, I am interested to franchise with a 100k capital. kindly help me to start up with this small capital. I would like to see some offers kindly email me email@example.com
Jefrey A. De Ocampo says
Our Company would like to participate in your Franchise List. Our brand is Rocko’s Herb-Roasted Chicken we have 38 franchisees as of January 2021.
suggest any music store that is open for franchising
Anton Deron says
A very helpful article, especially for those who are interested to join this industry! Could someone help me raise my 100k capital! Kindly email me for any suggestions. firstname.lastname@example.org
These are really interesting businesses. I am considering some of these as I seek to diversify my income sources.
Hi i am a OFW and planning to have a business but dunno where to start. Please help me. Thankyou
There are many great franchise business opportunities in the Philippines. Some of the most popular include Jollibee, Dunkin Donuts, and 7-Eleven. It is about finding a franchise that you can launch in your own location and studying the market to ensure that it will succeed.
Nami PH Franchising Corporation says
Good day! This is April, owner of Nami PH Franchising Corporation. We would like to inquire on how to promote our brand in your website.
Kindly send the requirements and fees at email@example.com