Franchising is an option now considered by more entrepreneurs looking to expand their business beyond their home-base to other places in the country.
Global business experts agree that the franchising industry is one, if not the most progressive driver among some of the world’s largest and emerging economies. Just consider the franchising numbers for the Philippines alone and you will understand the industry\\\'s impact to the economy:
-In 2010, franchised businesses in the Philippines accounted for US$9.45 billion, or 30 percent, of total retail output in the country last year.
-More than 1.02 million jobs are generated by the franchise industry.
-There are more than 125,000 outlets of 1,300 brands and concepts being offered in the local franchise sector. Fifteen years ago when the concept of franchising was first introduced here in the Philippines, there were only about 50 franchisors, 80 percent of which were foreign brands from the United States like McDonald’s and KFC.
-An estimated 66 percent of all franchises here in the Philippines are homegrown concepts.
-Overall, 42 percent of all franchises here in the country belong to the food industry, 34 percent from the retail sector, and about 24 percent from the services sector.
“The franchising industry plays a major role in strengthening the levels of national income, employment opportunities and investments among some of the world’s top economies like the USA and Great Britain, as well as ASEAN markets like the Philippines, Singapore and Malaysia,” says Samie Lim, chairman of the World Franchise Council.
“Here in the Philippines, the upward trend for the franchising sector is expected to continue as more and more homegrown concepts get recognition from the significant results that these businesses yield,” Lim adds.