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Partnerships among franchisers

Tie-ups the new trend? Why common advocacies and goals are convincing franchisers to become franchisees, too
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From being mere industry buddies, several local franchisers are now becoming business partners as they elevate their friendship and common advocacies to actual tie-ups.

Spearheading this sort of mini-consolidation in the local franchising scene is Teresita Ngan Tian, president and CEO of locally bred franchise concept Lots’ A Pizza and chairman emeritus of the Association of Filipino Franchisers Inc. (AFFI).

Ngan Tian told the Entrepreneur that this started about a year ago when she was invited by Bards Montanido, owner of Lapid’s Chichariffic!, to buy in to the company. Ngan Tian said being a close friend and aware of the potential of Chichariffic!, she bought the 50-percent share of Montanido’s sister with little hesitation.

Months later, Ngan Tian said she was approached by the owners of Julie’s Bakeshop, also an AFFI member, to inquire if they can become the master franchisee of Lots’ A Pizza in the Visayas-Mindanao area.

This gave birth to the VISMIN Master Franchise Corp., a subsidiary of the Gandionco Family’s holding company RJSEI, the mother unit of Julie’s Franchise Corp. VISMIN Master Franchise Corp. will now solely handle all franchise expansions of Lots’ A Pizza in the Visayas and Mindanao regions. It will be constructing a commissary in Cebu City to manufacture crusts and distribute all stock requirements such as toppings, boxes, and cheese.

After closing this deal, Ngan Tian said she and her husband started talking to the owner of another AFFI member-company Mang Inasal, this time to become a franchisee of this chain famous for its grilled chicken and unlimited rice.

So now, Ngan Tian said she is wearing four hats—as the franchisor of Lots’ A Pizza, a co-owner of Chichariffic, a franchising partner of the Gandioncos in the Vis-Min area, and a franchisee of Mang Inasal.

This, she said, became possible because of the friendship and trust that they have with each other as industry partners.

“All four companies are members of AFFI. Because of the synergy, trust and belief in one another, we are able to partner,” Ngan Tian said.

She said this kind of tie-ups among industry players could become a trend in the local franchising scene, especially once the success of these partnerships is noticed by the other franchisers.


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