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?
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.
If you’re on board with starting a franchise business, here are the 10 best franchise business opportunities you can get into.
1. Food Kiosk
Franchise fee: Php 20,000 – Php 30,000
Food kiosks are ideal for people who are just starting in business because they’re affordable. The minimum would only cost you Php 20,000. Furthermore, Filipinos love to eat at food kiosks because it’s cheap and quick but the food still tastes good.
Just find a strategic location where there are a lot of people, usually in malls or train stations. Check out the food carts in these multi-franchise companies:
Below are some of the most popular options (with proven track record in terms of profitability) for food cart/kiosk franchises in the Philippines.
- 534-5845 [Landline]
- 534-5846 [Landline]
- (02) 453-5239 [Landline]
- (02) 453-5240 [Landline]
- 0917-848-3522 [Globe]
- 0922-862-6154 [Sun]
- (02) 340-0156 [Landline]
- +63 917 5594318 [Mobile]
- (02) 470 4083 [Landline]
- 0915-2828213 [Globe]
- 0918-8073575 [Smart]
- (02)509-1049 [Landline]
2. Coffee & Cold Beverage Stand
Franchise fee: Php 100,000
Even if not everyone drinks coffee (some may be more of a sago’t gulaman person) you can’t deny that a lot of people need and want to drink this caffeine in a cup. A lot of Filipinos also want to drink frappuccinos (especially during the hottest months) but can’t always afford to buy them in big-name coffee shops.
Setting up a coffee stand or cart is one of the best ways to meet coffee lovers’ needs and start an affordable business. People get affordable frappes and lattes, and you make a profit. It’s a win-win situation.
Star Frappe, which offers a franchise package of Php 99,000 for a kiosk, is one of the coffee stand franchises you can check out.
There are also other cold beverages that many Filipinos are so into, here are some of the most popular options:
- 0956-5478845 [Globe]
- 0928-5035228 [Smart]
- (02) 509-1049 [Landline]
- 0918-8889248 [Smart]
- 0917-8098043 [Globe]
- 0923-4563586 [Sun]
- (632) 687 – 4432 [Landline]
- (632) 687 – 4404 [Landline]
- 0906-888-2828 [Mobile]
- (632) 731-8886 [Landline]
- +63 (998) 5589640 [Smart]
- +63 (906) 3856785 [Globe]
- 0932-456-9540 [Mobile]
- (02)376-6052 [Landline]
3. Water Refilling Station
Franchise fee: Php 100,000
Water is a basic need; no one can survive without it, particularly clean and drinkable water. This means that the demand for drinking water will never diminish.
That’s why businesses that supply water in the Philippines make a lot of money. Some of the top water refilling franchises in the country are:
- (02)332-2222 [Landline]
- (02)371-0478 [Landline]
- (+632) 695-3823 [Landline]
- (+632) 239-1701 [Landline]
- 0977-771-6147 [Globe]
- 0921-881-7991 [Smart]
- 0932-119-4522 [Sun]
- +63 2 775 5010 [Landline]
4. Fast Food Restaurant
Franchise fee: Php 300,000
If you have a larger amount of money to invest, you can get your very own small fast food restaurant. Filipinos love to eat. Fast food franchises have been growing in the Philippines since the ‘80s – we even have international food chains like IHOP and Dairy Queen.
These franchises might need more capital though, but there are local food chains like Angel’s Pizza that only require a minimum investment of 300,000 pesos. You can reach out to Angel’s Pizza here. Other popular choices for low-capital fast food franchises:
- (02)912-2973 [Landline]
- (02)912-2946 [Landline]
- 0917-678-0386 [Mobile]
- (02) 815-1823 [Landline]
- (02)654-2929 [Landline]
- (02)654-9001 [Landline]
- (02)654-9002 [Landline]
- 0917-723-3383 [Globe]
- 0923-313-0852 [Smart]
- 0922-860-7159 [Sun]
- 0925-894-5637 [Mobile]
- 0943-520-1080 [Mobile]
5. Spa & Salon
Franchise fee: Php 250,000 – Php 300,000
Everyone needs a haircut or a new hairdo every once in a while, and sometimes people prefer to get their hair done in cheaper salons rather than in big ones like Bench Fix or David’s that charge 200 to 300 pesos for a haircut.
Thrifty people are more inclined to go to less-known salons that offer decent services for sometimes half the cost.
For those of you who have always liked to style themselves, or have been a hair stylist before, you might want to look into starting your own salon. You can now franchise salons for as low as 250,000 pesos.
And with Filipinos becoming more career-focused, a lot of us have also become more stressed. The toxicity at work can become unbearable; add to that the hassle of commuting. People need a place where they can relax and relieve the stress even for just a short while.
Not a lot can afford to take a vacation, so going to the spa has become an ideal, cheaper, and more convenient alternative. This is something that you should consider to invest in as an entrepreneur. Here’s a shortlist of low-cost spa/salon franchises:
- (02) 942 2031 [Landline]
- 0915 194 8975 (Globe)
- 0999 222 8424 (Smart)
- 0917 322 5283 (Viber)
- 0917-812-5836 [Globe]
- 0925.549.3406 [Mobile]
The NailXperts Spa
Franchise Package: Starts at P130,000
- (02)912-2946 [Landline]
- (02)912-2973 [Landline]
- (02)955-0734 [Landline]
6. Vending & Service Machines
Franchise fee: Php 20,000 – Php 300,000
Technology has certainly made a lot of things easier for humans (especially with the inevitable rise of cashless payment systems). And now, even in the franchising space, technology has made business operations far less complex, as some of these business ideas don’t heavily rely on human resources (except for maintenance and marketing).
Below are some ideas to get you started:
- + (02) 232.8946 [Landline]
- + (02) 232.8947 [Landline]
- +63 920-9831-933 [Mobile]
- +63 923-1692-567 [Mobile]
- (632) 821-4667 [Landline]
- +632 (477-3333) [Landline]
Franchise Fee: None (but must have an existing retail or service-oriented business to apply as an agent).
Where to Apply: https://agentportal.westernunion.com/ap/agentregister.do
- 02 888-1200 [Landline]
- +632 448-7671 [Landline]
7. Personal Services: Shoe repair, Laundromat, & Payment Centers
Franchise fee: Php 120,000 – Php 400,000
Practical – it’s what makes these service-based franchise business models very profitable. Many of these services have been a huge part of many Filipinos’ monthly/quarterly routines – given that people are getting busier with work and social activities
And this continuously growing demand is certainly something you can capitalize on. Here are some of the most popular solutions you can provide through business franchising:
- + 63 917-836 3000 [Globe]
- +63 920-966 3000 [Smart]
- 1622-6015 [Landline]
- (0917) – 735 – 0121 [Globe]
- (0929) – 717 – 2996 [Smart]
- (0922) – 697 – 5731 [Sun]
- (02) 668 – 0362 [Landline]
- (02) 232 – 8070 [Landline]
- 0925 – 88 – QUICK (78425) [Globe]
- 0949 – 99 – QUICK (78425) [Smart]
- (02)671-9541 [Landline]
Happy Wash Laundry
Franchise Fee: P160,000
- (046)683-0029 [Landline]
Franchise fee: Php 50,000 – P160,000
Parenting is one of the most lucrative spaces in the world – given that a lot of parents in this generation spend a lot of money to get what’s best for their kids. And supplementary education is definitely not an exemption to this rule.
- +632 8850226 [Landline]
Seriously Addictive Math (SAM)
Franchise Fee: P168,000 (Minimum total investment cost is P250,000 if you have an existing business)
- 0977-8239910 [Mobile]
- 0916-754-0102 [Mobile]
9. Car Wash
Franchise fee: Php 250,000
With so many easy installment plans to choose from, more and more Filipinos are getting a car. Add to that the fact that with Grab and Uber, they can now turn their car into an income-generating vehicle.
With more cars in the country, the demand for car wash services won’t be going down soon. Getting a franchise for a car wash isn’t also all that expensive. If you’re into cars, maybe a car wash business can be for you. Nice Day! Car Wash offers a Php 250,000 franchise fee you might want to check out.
10. Retail & Pharmacy
Franchise fee: Php 99,000 – Php 400,000
Medicines and food supplements will always be needed, so you can’t go wrong with starting a drugstore for a franchise business. People are becoming more aware of generic meds as an alternative to often more expensive brand-name products, which is why generic pharmacies appeal more to the masses.
Starting a pharmacy offering generic drugs not only means good business for you, but it also means you’re giving people more affordable options. Farmacia ni Dok is something you can consider if you want to get into generic pharmacy franchising. They offer a Php 400k standard package.
There are also other specialized small retail stores that you can franchise for as low as P20,000, see our list below:
- 0922-898-4982 [Mobile]
- (02)828-1818 [Landline]
- (02)824-4685 [Landline]
- (02)703-4703 [Landline]
- +63 917 542 9570 [Mobile]
- +63 2 696 0337 [Landline]
- +63 2 532 0018 [Landline]
- (02)821-1111 [Landline]
- (02)821-5304 [Landline]
- (02)383-9951 [Landline]
- (02)387-1846 [Landline]
- 0917-881-69-99 [Globe]
- 0920-983-02-47 [Smart]
- (02)634-05-86 [Landline]
- (+63)9976058630 [Globe]
- (+63)9089923284 [Smart]
- (+63)9333222135 [Sun]
- +632-3283073 [Landline]
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.