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Can OFWs own a franchise?

Can OFWs own a franchise in absentia?
By Armando Bartolome |

Q: I\\\'m an OFW still working abroad. I want to invest by franchising in a food cart business. I can ask my brother to manage it while I\\\'m still abroad, and just take over when I come back, but I want the papers to be under my name. Is this possible?

 

A: As long as you satisfy the basic requirements on owning a business as prescribed by our government (such as registering with the proper agencies, getting tax identification number, etc), you may have the permits and franchise agreement under your name. However, there are other aspects you need to look at:

 

1. Is your brother really willing to manage the business? Being a manager is a huge responsibility.

2. Is he willing to undergo the necessary training which will be conducted by the franchisor?

3. Have you and your brother arrived at a written agreement as to what exactly will be your working relationship? Will he be an active partner or your employee? How about his compensation?

4. Is the franchisor open to the idea of training you when you come back? Since you will be the franchisee, you need to know the ins and outs of the business. Undergoing training is different from just reading the manual or asking your brother how things are done.

5. What happens to your brother thereafter?

 

Going into franchising is not only about raising capital to fund the business. By its very nature, franchising is all about forming partnerships and having an agreement. You really have to sit down to do a careful study before making your final decision.    

 

Armando ( Butz) O. Bartolome, the Philippines\\\' Franchise Guru, is currently President of GMB Franchise Developers, the pioneer franchise development company in the country and is behind the growth and expansion of over 200 local companies. You may reach him at franchiseconsultants@gmail.com or post your franchising how-to questions here.  

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