Franchise Business Philippines: Best Opportunities 

Franchise business Philippines are great opportunities to earn passive income. With more and more franchising ventures popping out, which are the best? 

In this post, we will talk about what a franchise is, the benefits of having one, and the best franchise business Philippines. We will also go over the requirements for franchise business Philippines and answer the most frequently asked questions about franchising. 

What Is a Franchise?

A franchise (or franchising) is a method of distributing products or services that involve a franchisor. 

The franchisor establishes the brand’s trademark or trade name. They also determine the business system.

The franchisee, on the other hand, pays a royalty. In most cases, a franchisee needs to pay an upfront fee, too. 

The term “franchise” technically refers to the contract that binds the two parties. However, it more generally refers to the actual business. 

There are two kinds of franchising arrangements. The most well-known business format is franchising. 

In a business format franchise, the franchisor gives the franchisee the whole system. 

The franchisor often provides the franchisee with the following: 

• Site Selection
• Development Assistance
• Operating Instructions
• Training
• Brand Standards
• Quality Control
• Marketing Plan
• Business Advising 

The other type is traditional or product distribution franchising. Under this, the franchisor gives license to the franchisee. The franchise then sells products under the name of the franchisor. 

This can be seen in industries such as bottling, petroleum, and automobile.

Benefits of Having a Franchise Business

Here are the benefits of having a franchise business:

Business Assistance

The business help provided by the franchisor is one of the advantages of franchising.

As a franchisee, you can get everything you need to start right away. You can have the brand, the equipment, supplies (e.g. baking ingredients), and the advertising strategy.

All of this information is crucial for running a successful business. It also makes it easier for you than starting a business (e.g. baking business) from scratch.

Brand Recognition

Brand awareness is another benefit of franchising. 

Starting a business from scratch requires you to create your brand. You also have to build a client base, which takes time.

A franchise, on the other hand, already has a brand and client base. People will instantly know what your business is, what you provide, and what they can expect from your business.

Lower Failure Rate

Franchising businesses, on average, have a lower failure rate than a regular one. 

When you have a franchise business, you already have a strong brand. You also have a network that will help and guide you. Given these, you will less likely fail.

Furthermore, franchisees have validated their company idea. This gives you confidence that your products have high demand.

Buying Power

If you own a small business and need to purchase materials, you’ll have to pay extra.

On the other hand, if you have a franchise, you don’t need to do so. Since you have a network of franchisees, you buy products in bulk. As a result, franchisees can enjoy huge discounts. 

Profits

In general, franchisees make more money than individually owned businesses. 

Most franchises have popular names and brands that attract tons of customers. Profits increase as a result of this popularity. Even franchises with a hefty initial investment for the franchise fee have a great return on investment.

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Best Franchise Business Philippines

Here are the best franchise business Philippines: 

1. Car Wash Franchise

With so many simple payment plans to select from, an increasing number of Filipinos are purchasing a car. In addition, you can now transform their automobile into an income-generating vehicle thanks to Grab.

With more automobiles on the road, the need for car wash services isn’t going away anytime soon. Obtaining a franchise for a car wash is also not too expensive. 

If you enjoy vehicles, then a car wash business is for you. 

2. Coffee Stand or Cafe Franchise

Even if not everyone drinks coffee, you can’t deny that a lot of people need coffee. Many Filipinos desire to drink frappuccinos or any other types of coffee drinks, particularly during the warmer months. However, they can’t always afford to buy them at high-end coffee shops.

Setting up a coffee stand is one of the best methods to cater to coffee enthusiasts. People can buy low-cost frappes and lattes, and you profit. It’s a win-win situation for everyone.

3. Education Franchise

Parenting is one of the most profitable industries in the world. After all, many parents in this generation spend a lot of money to acquire the best for their children. 

Getting an education franchise can be a profit-making machine for you. Plus, it’s a great business if you love teaching. With the changing educational landscape, this type of franchise will just go boom.

4. Fast Food Restaurant Franchise

If you have enough money to invest, you can open your own little fast food restaurant. After all, Filipinos enjoy eating. 

In fact, fast food franchises have been expanding in the Philippines since the 1980s. We now even have international food chains like IHOP and Dairy Queen. These franchises may demand more funding, though.

However, there are local food companies that are less expensive. Even if they are, your investment will still be worth it. 

5. Food Cart Franchise

Because they are inexpensive, food kiosks are great for entrepreneurs who are just starting out in business. 

You can open a food cart franchise for as low as 20,000 PHP. Furthermore, Filipinos enjoy eating at food kiosks since it is inexpensive and quick. Yet, the food remains tasty.

Simply choose a strategic place with a large number of people. These areas include malls and train stations.

6. Personal Services

Personal services include shoe repair, laundromat, & financial services.

Service-based businesses thrive because of their practicality.

Given that individuals get occupied with work and social activities, these services have become an important part of many Filipinos’ routines. In addition, this ever-increasing demand is certainly something you can profit from.

7. Retail & Pharmacy Franchise

Medicines and dietary supplements will always be in demand. Thus, launching a pharmacy as a franchise business is a sure bet. 

People are also becoming more aware of generic medications as an alternative to frequently more expensive brand-name drugs. For this reason, generic pharmacies become more popular.

Starting a pharmacy that sells generic pharmaceuticals is not only beneficial for business. It also provides patients with more and cheaper choices. If you want to get into generic pharmacy franchising, look at your options online.

8. Spa & Salon Franchise

Everyone needs a haircut or a new hairstyle every now and then. Some people choose to get their hair done at less expensive salons. Others get them done at major ones like Bench Fix or David’s.

Hence, those on a tight budget will more likely to visit lesser-known salons. These salons provide the same services at a fraction of the cost.

Those of you who have always enjoyed styling yourself or have previously worked as a hair stylist may want to consider opening your own shop. 

In addition, as Filipinos have gotten more career-focused, many of us have become more stressed. The toxicity at work may become unpleasant, especially when combined with the inconvenience of commuting. People, therefore, want to relax. They can do this at your salon. 

Moreover, since not everyone can afford to take a vacation, going to the spa has become an excellent, less expensive, and more convenient option. As an entrepreneur, you should think about investing in this.

9. Vending & Service Machines Franchise

Humans’ lives have surely been made simpler by technological advancements (especially with the inevitable rise of cashless payment systems). 

Even in the franchising industry, technology has made business operations significantly less difficult. Some of these business concepts do not rely substantially on human resources.

So, getting a vending machine or payment machine franchise can work. After all, you likely used one.

10. Water Refilling Station Franchise

Water is a necessity. No one can live without it, especially clean and drinking water. 

This means that there will always be a need for drinking water. For this reason, you should consider getting a water refilling franchise.

In addition, water supply companies in the Philippines make a lot of money. Just a little food for business thought. 

How to Start Franchising (With Requirements for Franchise Business Philippines)

Starting a franchise business might be daunting, especially if you don’t know how to start.

But don’t worry, because we got you. Here’s how to start franchising, along with requirements for franchise business Philippines:

1. Determine Your Business Structure

Franchisees, like any other type of company owner, must decide on a business structure. 

For this, you can choose from being the following:

• Sole Proprietorship
• Partnership
• Corporation

2. Register Your Business Name

Your business name is different from your brand name. Hence, you have to create a new name for your business. 

You will use this name when dealing with the franchisor, lessor, government, and other businesses. 

Once you chose a business name, you must register it. 

• For partnerships and corporations

You must register with the Securities and Exchange Commission (SEC). They have many forms and procedures that you must fill out,. However, you can complete them online. Check out our step-by-step guide to online partnership and company registration before registering. 

• For sole proprietorships

If you’re a sole proprietor, all you have to do is register with the DTI. 

You can use your own name for this. However, as a franchisee, you must use professional-sounding business name.

You can easily and quickly register with the DTI. You may even do it online. For DTI registrations, you must select the territorial scope of your company name from the list below:

• Barangay
• City or Municipality
• Regional
• National

Your decision decides where your company’s name is legal.

Barangay or City or Municipality are suggested for first-time franchisees. You can broaden your reach in the future when your company has expanded.

3. Register With the BIR

Regardless of the business structure you select, you must still register with the BIR. This can be done along with the application for a business permit.

To register, do the following:

• Complete BIR Form 1901 for sole proprietorships. Fill out BIR Form 1903 for partnerships or companies.
• Submit the paperwork, along with the necessary requirements, to the Revenue District Office (RDO). The local BIR unit assigned to your region is known as an RDO. In the case of franchises, you should normally register with the RDO where your main office is rather than where your branch will be operating.
• Pay the registration cost.
• Obtain your Registration Certificate (also called BIR Form 2303).

4. Apply for a Business Permit for Your Office and Store Location

A business/mayor’s permit n is necessary for your franchise’s head office and shop location. New franchisees are encouraged to have two of them in the same place. This results in less fuss and lower taxes. 

To register with your local government, you must do the following:

• Prepare for the needs of the local government by contacting them.
• Pay any fees related to your application.
• Request that the fire and sanitary services inspect your location.
• Obtain a business/mayor’s permit.

Frequently Asked Questions 

Conclusion

Investing in a franchise business Philippines is a wise decision. 

Depending on where you are and your approach, you might see a return on investment in a year or two. Rather than starting from fresh, they are tried-and-true items that the market has grown to adore.

Which franchise business Philippines do you want to try? Let us know in the comment section below! 

About HICAPS

Over the years, HICAPS has helped bakers and businesses make delicious products by offering ingredients like ChiffonAide Cake Oil, Magic Whizk Whipping Cream, Red Velvet Flavor Emulco, and Instabake Brownie Mix. 

HICAPS also provides tools and resources to valued partners such as the free “How to Increase Your Sales Amidst the Pandemic” E-book and free dealer locator that helps look for baking ingredients near me. 

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