Franchising to further boost global economy

MANILA, Philippines - Franchising will continue to be a strong tool to move the global economy forward, this after international franchise leaders from world umbrella organizations World Franchise Council (WFC) and the Asia Pacific Franchise Confederation (APFC) affirmed the tried-and-tested investment benefits of franchising at the twin meetings of the WFC-APFC during Franchise Asia 2011 hosted by the Philippines through the Philippine Franchise Association (PFA). 

PFA Chairman Emeritus Samie Lim cited that franchising, despite the worldwide financial downturn and other economic hurdles, has sustained its core mission of enterprise development and employment generation. 

“According to WFC-APFC Manila Declaration of 2011, many countries who have recognized the advantages of franchising have adopted policies which actively support new franchise business ownership, which in turn promotes MSME development, the very backbone of any economy. Thus, the international franchise community is one in calling for a strong and constructive cooperation between and among the government, the banking sector and the franchise sector to provide an enabling environment which will provide stimulus to economies worldwide,” Lim, who also served as WFC chair, said. 

Lim revealed that, based on the WFC country reports presented by national franchise associations for last year, franchising in eight of the top 11 countries created around 2 million franchise outlets which generated over 17 million employment opportunities worldwide. “Apart from these, franchising achieves other far-reaching economic and social benefits, among them wealth creation, advancement MSMEs, and empowerment of women,” he added.

Included in the top 11 performing countries in the WFC report, the Philippines contributed more than a million jobs created from around 125,000 franchise outlets, which in turn accounted for $11 billion or 30 percent of retail output in 2011. 

PFA, as the biggest franchise association in the country, continues to be the lead agent in creating programs which serve as catalyst for the entire growth of the Philippine franchise sector. These programs are crafted and implemented through the various committees of the Association, each of which are headed by the top names in the franchising sector comprising the PFA Board of Trustees. 

PFA President and Wendy’s Chairman Yvette Pardo-Orbeta expressed optimism that the local franchising sector will continue to be a main driver for national economic growth, citing record figures achieved by Franchise Asia 2011 last September.  

“The International Franchise Expo, with its more than 50,000 visitors, is expected to generate 50 billion worth of businesses in the next three years, which would be equal to around 12,500 actual franchise outlets. These new businesses roughly translate to 200,000 additional job opportunities for the Filipinos. These numbers from the franchising sector will definitely boost the country’s economic activity from 2012 onwards,” Pardo-Orbeta reveals.