Franchising projected to lure more players, boost economy

Franchising as an industry sector and business format is seen to attract more players as it emerges to be a vital economic catalyst in the Philippines and the rest of Asia.

This assessment was based on the tremendous success of companies and entrepreneurs currently involved in franchising, particularly in ensuring the viability of their businesses, expanding their markets locally and internationally, professionalizing their operations, upgrading their systems to world-class standards, enhancing global competitiveness, and increasing profitability.

"To a great extent, franchising has become a global business model in multiplying one’s corporate and market presence both on national and international scale, thus promoting commerce, creating employment and helping democratize wealth, technology and expertise," said Bing Limjoco, president of the Philippine Franchise Association (PFA).

Records of the PFA show that franchising is the only business sector experiencing phenomenal growth in the Philippines over the years – from only 50 franchises in the early 90s to more than 700 at present.

This phenomenon was largely attributed by PFA chairman Samie Lim to a number of factors. These include the country’s 80-million population, a whopping 64 percent of whom are young and 94 percent English speaking; the over 7,107 islands that allow strategic geographical expansion; the short flying time to Southeast and East Asian countries and proximity to the region’s 3.8-billion unsaturated market; the big pool of highly skilled finance, legal and marketing professionals; the rating of Filipinos as among the best managers in Asia, and the Philippines being an ideal place in the region where business and quality of life mix well.

Likewise, the consistent rise in the number of franchises can be partly attributed to the annual Philippine International Franchise Conference & Expo (PIFCE) organized by the PFA since 1993.

Last year alone, PIFCE’s Franchise Asia 2001 drew a total of 147 exhibitors and 11,300 visitors from 20 countries worldwide, with 245 business contracts forged during the three-day show, according to Worldexco, the event manager.

More information on PIFCE can be obtained from Worldexco (tel. 8918638, 8347408, or email [email protected]).

For this year, PIFCE 2002 offers a 3-in-1 event – a workshop where new foreign franchisors can meet with highly qualified prospective franchisees; a comprehensive seminar where Filipino businessmen can learn how to franchise their businesses locally and internationally; and an exhibit where local and foreign franchisors can showcase their franchises.