You have been running your business for three years already and it has been a very exciting three years for you and your business. People have been pitching left and right that they want to franchise your business but you are not yet so convinced why you should.
Entrepreneur.com.ph asked Francorp Philippines’ chief executive officer, Bing Sibal-Limjoco to tell us why a business should enter franchising.
Here are the first six reasons why a business should be put on franchise:
1. Allows for expansion with minimal capital
2. There is no contingent liability as the franchisee invested on unit and franchisee has stake in the profits
3. Overcomes manager procurement problem and employee loss, there is minimum risk for shortage of good managers
4. Franchising eliminates day-to-day responsibility for direct management
5. Income is based on franchisee’s gross sales, not profitability moreover profit and loss responsibility is franchisee’s responsibility
6. Expansion can be accomplished more rapidly
Looking for more ideas about franchising? The Philippines has been chosen to host the global event, Franchise Asia 2011 on September 19-25 at the SMX Convention Center. Franchise Asia 2011 is four-in-one event featuring an international conference, franchise expo, and educational seminars. The Philippine Franchise Association, a local umbrella group of major franchising companies in the country, is spearheading the preparations for the event.