For aspiring entrepreneurs seeking a business venture without a specific idea in mind, franchising offers a diverse range of possibilities.
Franchises provide the advantage of a well-established brand with a loyal customer base, setting them apart from independent businesses in their early stages.
With over 200 member-franchisors as of March 2023, the Philippine Franchise Association (PFA) offers an array of opportunities. While many options fall within the food industry, there are also service franchises available, such as spas, drug stores, laundry shops, internet cafes, and review centers.
Here are some:
1. Jollibee: Franchising the Philippines’ most renowned brand requires an investment of P1.2 million (excluding VAT), with a total capital outlay of P40 million. The franchise agreement spans 10 years, renewable for an additional 10 years.
2. McDonald’s: Golden Arches Development Corp. oversees McDonald’s franchising in the Philippines. With a franchise fee of $22,500, the capital investment ranges from P32 million to P45 million. The agreement covers 10 years.
3. Happy Haus Donuts: This accessible franchise option offers a kiosk for P100,000, which includes the franchise fee and capital investment. The initial agreement lasts for two years, with a renewal fee of P15,000. Happy Haus Donuts operates through 8 commissaries, serving over 600 outlets across Luzon, Iloilo, Cebu, and Davao.
4. Potato Corner: Known for its popularity, Potato Corner requires a capital investment of P300,000 to P500,000, along with a franchise fee of P150,000. The franchise agreement spans three to five years, with a renewal fee of P75,000. It has received prestigious accolades, including the Philippine Franchise Association’s Franchise Hall of Fame award and the Department of Trade and Industry’s Global Franchise Award. Potato Corner has been successfully franchising for 25 years and operates in 11 countries.
5. 7-11: With a franchise cost of P600,000, be prepared to invest P3.5 million or more for capital expenditures. The agreement covers five years, with an option for renewal.
In addition to food franchises, automated laundry shops have gained popularity due to their low spoilage risks and smaller staff requirements. Quickclean, for example, requires an initial capital investment of P4 million, along with a franchise fee of P250,000 (excluding VAT). The franchise term is set at six years.
Before diving in, the PFA advises potential franchisees to reflect on their motivations for owning a franchise, conduct thorough research, evaluate available resources, and determine their level of commitment and financial investment. Personal compatibility and passion for the chosen franchise should also be considered.