Group calls for ‘responsible franchising’

The Association of Filipino Franchisers, Inc. (AFFI) is calling for "responsible franchising" as it observes a growing interest from families of overseas Filipino workers (OFWs) to invest in franchises.

In a press conference to announce its 5th Filipino Franchise Show dubbed "Franchise Fever" from July 7 to 9 at the Mega Trade Hall, AFFI officials led by Chit Juan of Figaro, noted that franchising in the country has boomed in the last few years with franchises now increasing to 900.

However, of the total 900 franchises, more than half or 60 percent are homegrown Filipino franchises.

The bulk of the franchises or around 60 percent are in the food sector, while only about 40 percent are in the services sector, AFFI said.

The demand for franchises, AFFI further observed, comes from the provinces.

The AFFI, which is comprised of 60 members, notes that local investors are now opting for homegrown franchises, which cost less and are more adapted to the local culture than to the big foreign franchises.

However, with the growth, AFFI is also calling for responsible franchising, noting that franchisors should make sure that they are capable of expanding their business and not merely resort to franchising without have the adequate logistics to supply and service their franchisees.

Likewise, franchisees, Juan warned, should know how to ask the right questions before investing in a franchise.

The 5th AFFI Franchise Fever, Juan said, aims to give potential investors an insight on franchising and securing the necessary financing to invest in such ventures.