What made franchise businesses a popular trend in the Philippines? Franchising is a popular business process which involves making use of another firms successful business model.
Franchising has been practiced in the Philippines for years, according to many business experts, and the only reason why it was only recently that franchise business Philippines became popular is because of its lesser expensive franchising costs.
Popular Business in the Philippines
Franchising had long been practiced in the Philippines before it was widely known across the country. It was because of franchising that many of todays popular establishments, such as McDonalds, Wendys, Burger King, 7eleven, and many more were introduced in the country.
However, most Filipinos which were able to acquire a franchise of these businesses are wealthy Filipinos. It was only when smaller franchise business in the Philippines was introduced when franchise businesses had gained a lot of popularity and demand in the Philippine market. A popular example is food-cart and food-stall businesses.
Advantages of Small Franchise Businesses
One reason that made small Franchising business Philippines is because of its lesser expensive cost compared to larger franchise businesses such as convenient stores and fast-food restaurants, while giving its franchisees the same opportunity for profitability.
But other than just its lesser expensive costs, another reason why franchise businesses became popular in the Philippines is because of its simplicity. Compared to larger franchise businesses, food-cart and food-stall businesses can be easily manned by one or two personnel.
Its smaller size makes it easier and more convenient to place this business from one location and move it to another location, which is why many Filipinos chose to start a franchise business rather than to start it from scratch.
But other than the advantage for its franchisees, the popularity of small franchising businesses had also resulted in the significant growth of the Philippine economy.
Contribution of the Franchise Industry in the Philippines
According to the PFA or the Philippine Franchise Association, the growth of the franchise industry of the Philippines had generated hundreds of thousands of jobs, making franchising an important tool in the countrys economic growth.
In addition to that, the growth of the franchise industry also paved the way for Filipinos to introduce their brands and concepts to the International market. It was also because of the growth of the franchise industry that gave Philippines the recognition as the franchise hub of Asia when it comes to the development of franchise concepts.