Franchising

To expand a business in an archipelago is to face costs and challenges not for the faint-hearted entrepreneur. The winners for Best Homegrown Franchises during Entrepreneur Philippines' Franchise Awards 2011 are definitely not that kind, setting up stores across the country with the help of partners and through an efficient franchising system. 

There are a few exceptions though: Lots’A Pizza Franchise System, Philippine Food Asia Corp., and Max’s Franchising Inc. are all willing to take that risk, and have successfully conquered much of the country—more than 120 stores each scattered in at least 10 regions. They continue to be some of the most preferred franchise concepts in the country, thanks to strategies that helped each to expand fast and efficiently.

Getting a partner that would be able to manage outlets in Visayas and Mindanao was the only good option Lots’A Pizza could take on. “We really don’t have the time to go there and see the operations, so we got a partner which is already familiar with the place,” says president Tess Ngan Tian, referring to VisMin Master Franchise Corp., a subsidiary of RJ & Sons Enterprises, the mother company of Julie’s Bakeshop.

In the case of Philippine Food Asia, focusing on one strong brand and developing a low-cost, high-income investment model have rewarded the company so much after only four years in franchising. Ma. Cynthia Macalintal, retail operations manager, says it was easy to grow Bibingkinitan as it only requires a cart with small equipment to bake delicacies, one to two persons to man the store, and raw materials that are locally available.

“You can be everywhere. Every time a mall opens, just get a few square meters of space, and you can already put up a Bibingkinitan,” she says. The company aims to have 200 operational stores by end of this year. As of December 2010, it manages 122 stores in 12 regions. A shift in marketing strategy has led to a new tagline for Bibingkinitan, “coffee shop ng bayan,” and carts are now converted to counters with tables and chairs.

A brand that has secured its place in the Philippine restaurant industry is Max’s Franchising. With 118 restaurants nationwide, and nine in the United States and Canada, Max’s is able to serve Filipino food in Filipino communities abroad. Coupled with the most creative marketing campaigns, the company’s efficient franchising system and steady expansion has caught the attention of foreign investors. In April 2011, Max’s sealed the deal with a master franchise agreement with Jamba Inc, the company behind healthy beverage brand Jamba Juice.

To nominate your franchise for Entrepreneur Philippines' Annual Franchise Awards, click here.