Local franchising seen to get big boost from world body

MANILA, Philippines - Local franchising is expected to get a big boost as the Philippines plays host to the World Franchise Council later this month.

In an interview with reporters, World Franchise Council (WFC) chairman Sammie Lim said that franchising is expected to boost the investment sentiment in the country.

In fact, Lim said because the Philippines is hosting the global show, the country will get an estimated P50 billion worth of new franchise investments spread over a period of three years.

He said the show is expected to attract 50,000 visitors. Of which he said there will be 25,000 serious leads. Lim said that conservatively only half of the serious leads will actually invest and with the average of P4 million per franchise that will result in P50 billion worth of investments. This will also mean 150,000 new jobs for Filipinos.

Based on WFC’s country reports, the Philippines is the only Asian country that has consistently made it to the top five listing of countries with the highest number of franchisors, franchisees and generated employment.

 “Franchise Asia 2011 will further underscore the enviable position of the Philippines as the gateway for International and homegrown brands to reach the 600 million ASEAN market,” Lim said.

The four-in-one event, which takes place on Sept. 19-25 at the SMX Convention Center, features the high-level meetings of WFC and the Asia Pacific Franchise Confederation (APFC), an international conference, the biggest franchise expo to date, and educational seminars.

From 2000 to 2010, Filipino franchisors increased to 1,093 equivalent to an 83- percent growth while franchisees grew to 124,000 equivalent to a spectacular 307 percent growth, placing the Philippines within the top five countries with the most franchisors and franchisees. The United States has the largest number of franchisors at 2,200 and franchisees at 765,723.

In the same period, the sector also boosted the employment rate, posting a 273-percent increase in employed individuals. From 274,482 in 2000 it grew to 1,023,000 in 2010 accounting for more than three percent of the country’s total employment. In terms of economic turnover, the sector registered an impressive 209-percent increase. From $3.04 billion in 2000 sales grew to $9.4billion in 2010. Currently, franchising represents 29 percent of the country’s total retail sales of $32 billion.

Meanwhile, last year’s biggest international franchise-systems in the Philippines in terms of gross revenues and corresponding nationwide outlets are: McDonalds with $215 million and 309 outlets; 7-Eleven with $152 million and 543 outlets; Pizza Hut with $88 million and 160 outlets; Mini Stop with $81 million and 200 outlets; Starbucks Coffee with $74 million and 175 outlets; and Dunkin’ Donuts with $30 million and 600 outlets.