No doubt you\u2019ve looked into the lucrative franchise business industry. You\u2019re probably already aware of local businesses dominating <\/a>franchises more than foreign businesses. Compared to 10 years back, today\u2019s local franchises take up 55 percent of the market over 45 percent from foreign brands.<\/p>\n\n\n\n Clearly, Filipinos want the all-in, ready-made aspect of a franchise business, especially if it\u2019s a locally owned company. But as an experienced entrepreneur, you know how one company\u2019s success may not be the same for another company that\u2019s applying the same strategy. <\/p>\n\n\n\n Before you plunge into the unknown, make sure your brand is ripe for franchising in the Philippines.<\/p>\n\n\n\n Has your business received:<\/strong><\/p>\n\n\n\n Look through emails and other communications channels about similar inquiries or comments. Once you figure out there could be a market to franchise your business in the Philippines, take an honest assessment of your commitment to this strategy. <\/p>\n\n\n\n You\u2019re not just going to run your business, but also guide and monitor how the franchisees run their operations.<\/p>\n\n\n\n When you decide to sell the rights to your business model and products or services, you\u2019re putting the fate of your brand into another entrepreneur\u2019s hands. In the right hands, your franchised business may see massive growth. But in the wrong hands, you risk the credibility and reputation of your brand. <\/p>\n\n\n\n And in the social media era, a reputation built over several years will crumble in minutes.<\/p>\n\n\n\n Franchising your business in the Philippines can be a great way to expand your reach and grow your brand. Once you\u2019re sold on your commitment to franchising your business, here’s a general roadmap to get you started:<\/p>\n\n\n\n Is your business model franchisable? Strong brand identity, proven profitability and a well-defined operating system are essential. Franchising requires replicating your success, so a standardized and documented system is key.<\/p>\n\n\n\n The products, service and overall look of the business must be so consistent that customers won\u2019t be able to tell them apart. The standardized procedures and policies you lay out for franchisees will help them follow the quality processes that have made your business successful in its market.<\/p>\n\n\n\n Because your commercial venture will now include external partners, your business plan must reflect the changes you now have to manage. Prepare the following:<\/p>\n\n\n\n Every updated business plan for franchisors must also include:<\/strong><\/p>\n\n\n\n Your franchise business plan must contain an outline of your growth over the years and your future plans for the next few years. Both will give franchisees an idea of the kind of success they can expect from getting a franchise of your business. <\/p>\n\n\n\n Seek professional guidance. A lawyer specializing in franchising can ensure your agreements comply with Philippine regulations. The Philippines doesn’t have a single franchise law, but several laws govern aspects of franchising, like intellectual property and contracts.<\/p>\n\n\n\n There\u2019s no better way to learn how to franchise your business in the Philippines than from an experienced, learned franchisor. <\/p>\n\n\n\n It\u2019s an overlooked step for some since it doesn\u2019t seem necessary. Although it may not have bearing on the requirements for franchising your commercial venture, the insight and guidance from a mentor and already successful entrepreneur<\/a> can help you maximize opportunities.<\/p>\n\n\n\n Organizations like the Association of the Filipino Franchisers<\/a>, Inc. and the Philippine Franchise Association<\/a> may be able to point you in the right direction.<\/p>\n\n\n\n As a business already in operation, it\u2019s expected you\u2019ll have secured your Department of Trade and Industry (DTI) or Securities and Exchange Commission (SEC) registrations.<\/p>\n\n\n\n But what legal documents do you need to establish your business as a franchise in the Philippines? Just this one: the franchise agreement.<\/strong> Why?<\/p>\n\n\n\n Turns out, there are no laws specific to the regulation of franchises in the country<\/a>. Franchisors in the Philippines follow general laws, most specific to what\u2019s applicable in the agreement, like the Intellectual Property Code.<\/p>\n\n\n\n Although recent directives from the government, including the DTI, have made the registration of the franchise agreement<\/a> a requirement, a lot of franchising issues still need to be addressed by legislation.<\/p>\n\n\n\n For micro, small and medium-sized enterprises (MSMEs), the following terms and conditions must be covered by the franchise agreement:<\/strong><\/p>\n\n\n\n Your franchise must cover all of these minimum terms and conditions. Because it\u2019s a contract, get a lawyer or consultant with expertise in franchising to draft it. A well-written franchise agreement protects both parties \u2014 ultimately, the brand. <\/p>\n\n\n\n According to EO 169, franchisors are responsible for registering the agreement.<\/p>\n\n\n\n It’s time to find your franchisees. Word-of-mouth is good, but a coordinated marketing campaign is better. You\u2019re competing with hundreds of other franchises; according to the DTI, the Philippines has 1,300 franchises covering the retail, food and service sectors. What makes your franchise better than all the others?<\/p>\n\n\n\n Develop a marketing strategy by identifying your ideal franchisee profile and target them through industry publications, franchise expos or online platforms.<\/p>\n\n\n\n The success of your franchising lies in the experience of your franchisees; that, and the consistency of your products or services. <\/p>\n\n\n\n Outline the type of support your business is going to provide to franchisees. Equipping your franchisees with the knowledge and tools to succeed is crucial. This may include operational training, marketing assistance, and quality control measures.<\/p>\n\n\n\n Other than training, consider financing options, site assistance and ongoing support with supply chain management. <\/p>\n\n\n\n #NinjaTip: <\/strong>Make sure your franchisees always have enough supplies and stocks. Ninja Restock<\/strong> is the fast and more affordable way to transport your stocks or inventory from warehouse to your franchisees’ stores. Learn about Ninja Restock and get a free quote today!<\/a><\/strong><\/em><\/p>\n<\/blockquote>\n\n\n\n Franchising your business can be a tempting path to growth, but it’s not without its challenges. Here’s a breakdown of the pros and cons to consider:<\/p>\n\n\n\n Ultimately, deciding to franchise your business depends on your specific goals and resources. Carefully weigh the pros and cons to determine if franchising is the right growth strategy for your business.<\/p>\n\n\n\n If the market demands it, if you\u2019re ready to share proprietary business details and process, if you have a good plan, start learning how to franchise your business today. <\/p>\n\n\n\n Other than expanding your brand, you\u2019re also giving budding entrepreneurs profitable business ideas<\/a> and opportunities.<\/p>\n\n\nAre you ready to franchise?<\/strong><\/h2>\n\n\n
![\"franchise](\"https:\/\/blog.ninjavan.co\/en-ph\/wp-content\/uploads\/sites\/2\/2022\/09\/franchise-business.jpg\")
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How to franchise your business in the Philippines<\/h2>\n\n\n\n
1. Self-assessment<\/h3>\n\n\n\n
2. Develop a franchise plan<\/h3>\n\n\n\n
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3. Legal considerations<\/h3>\n\n\n\n
4. Find a mentor<\/strong><\/h3>\n\n\n
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5. Get your documents in order<\/strong><\/h3>\n\n\n
![\"how](\"https:\/\/blog.ninjavan.co\/en-ph\/wp-content\/uploads\/sites\/2\/2022\/09\/how-to-franchise-your-business.jpg\")
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6. Promote your franchise<\/strong><\/h3>\n\n\n
![\"promote](\"https:\/\/blog.ninjavan.co\/en-ph\/wp-content\/uploads\/sites\/2\/2022\/09\/promote-your-franchise.jpg\")
7. Be consistent with supporting your franchisees<\/strong><\/h3>\n\n\n\n
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What are the pros and cons of franchising your business?<\/strong><\/h2>\n\n\n
![\"Franchise](\"https:\/\/blog.ninjavan.co\/en-ph\/wp-content\/uploads\/sites\/2\/2022\/10\/franchise-pros-and-cons.jpg\")
Pros<\/h3>\n\n\n\n
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Cons<\/h3>\n\n\n\n
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Grow your business through franchising<\/strong><\/h2>\n\n\n
![\"Franchise](\"https:\/\/blog.ninjavan.co\/en-ph\/wp-content\/uploads\/sites\/2\/2022\/09\/franchise-business-tree.jpg\")
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