Being Your Own Boss

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FRANCHISING
Running your own business by duplicating the
success formula of the franchisor
"Being Your Own Boss"
You are in a business for yourself, but not by
yourself. The franchisor is always there to help.
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FRANCHISE SUCCESS RATE VS TRADITIONAL RETAIL
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Franchise Growth in the Philippines Foreign vs.
Local
330 (44)
FOREIGN
2003 1999 1995 1980 1970
750
LOCAL
420 (56)
306 (60)
FOREIGN
508
202 (40)
LOCAL
FOREIGN
PFA Founding Year
47 (43)
111
64 (57)
LOCAL
45-50
15-20
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Ratio of Franchisors Food vs. Non-Food
Food
345 franchises
Non food
405 franchises
1995 1996 1997 1998 2000 2001 2003
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HIGH GROWTH AREAS IN FRANCHISING
Based on a USAID-funded study

• BUSINESS SERVICES
• SECURITY SERVICES
• PRINTING AND
• ELECTRONIC
• PUBLISHING
• FOOD AND
• BEVERAGE
• CAR SERVICES
• ACCESSORIES

• HEALTH SERVICES
• COSMETICS AND TOILETRIES
• MAINTENANCE AND CLEANING SERVICES
• LAUNDRY SERVICES
• HOTELS AND MOTELS
• RETAIL

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The Philippine Franchise Association

• Composed of 150 members from the industry
  leaders such as McDonalds, Pizza Hut, 7- eleven,
  Jollibee, Netopia, Caltex, STI, Francorp

• Member of Asia Pacific
• Franchise Confederation,
• World Franchise Council

• Recognized by
• the International
• Franchise
• Association

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The Philippine Franchise Association

• PLAYED a crucial role in the
• growth of Philippine
• franchising

• Aims to make the
• Philippines the Franchise
• Hub of Asia

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The Philippine Franchise Association
Franchise Expos in UK, US, China, Indonesia, etc
Our key activities/events
Networking with the International community
Franchise Excellence Awards
Certified Franchise Executive Program
ANNUAL FRANCHISE CONFERENCE AND EXPO
REGIONAL FRANCHISE SHOWS
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SMALL SCALE SME Development

• Putting up of incubation
• centers during franchise
• shows

• Creation of new generation
• of entrepreneurs thru
• seminars, training

- how to franchise your business - how to
acquire a franchise, etc.
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MEDIUM SCALE Nationwide Development
Expand existing franchise in the Philippines into
nationwide network of at least 100 units
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LARGE SCALE Intenational Promotion
Franchising to become top earner

• Export of top Philippine franchisors

Local franchisors have penetrated the US, and
Asia but has yet to conquer the European market
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Strengthening the Philippine Franchise
Competitiveness for Export Market
- PFA proposal to Asia Trust Fund
FOUR MAJOR OBJECTIVES vis-à-vis OUTPUTS

• Profiling the Philippine franchising sector
• Profile of franchise industry
• Benchmark of 20 performing franchise players

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Strengthening the Philippine Franchise
Competitiveness for Export Market
- PFA proposal to Asia Trust Fund
FOUR MAJOR OBJECTIVES vis-à-vis OUTPUTS
2. ID of regulatory barriers in target markets
which the government can negotiate in
multilateral forums - Analysis of issues
constricting Philippine franchise export
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Strengthening the Philippine Franchise
Competitiveness for Export Market
- PFA proposal to Asia Trust Fund
FOUR MAJOR OBJECTIVES vis-à-vis OUTPUTS

• 3. Piloting the export of selected Philippine
  franchises
• Assistance to export five local franchises
• Development of franchise export promotion
  strategy

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Strengthening the Philippine Franchise
Competitiveness for Export Market
- PFA proposal to Asia Trust Fund
FOUR MAJOR OBJECTIVES vis-à-vis OUTPUTS

• 4. Institutionalize assistance services for
  franchise export
• Establishment of PFA advisory desk for
  international franchise

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Thank You!
The Philippine Franchise Association Unit 701 OMM
Citra Building, San Miguel Avenue, Ortigas
Center, Pasig City Tel [phone], pfa_at_nwave.net,
www.philippinefranchiseassocition.com