AFFI projects 25% growth in sales

MANILA, Philippines - An increase in membership and the expansion of stores are seen to lead to a higher 25 percent rise in sales of the Association of Filipino Franchisers, Inc. (AFFI) than the initial expectation of 15 to 20 percent growth this year.

“Initially, we were expecting 15 to 20 percent growth in sales, but with 18 new members (of the AFFI), we expect sales to increase by 25 percent this year,” AFFI executive vice president Ricardo Cuna said in a press conference yesterday.

Sales of the 80-member AFFI reached $11 billion last year.

Compared to 2010’s $9.4 billion, AFFI’s sales climbed 17 percent last year.

Cuna said the expansion of AFFI members is likewise seen to support higher sales this year.

“If they (members) grow, that is another factor for higher sales,” he said.

He noted that many businesses are looking to expand given favorable economic conditions.

“We are very positive in the economy and our members are very aggressive,” he said.

In particular, businesses are looking to open new stores in the provinces, either company-owned or through franchises.

Most businesses, Cuna said, have concentrated in Luzon in the past.

At present, there is an estimated 200,000 franchise outlets in the country, with an average of four to five employees per outlet, translating to at least a million job opportunities for Filipinos nationwide.

AFFI auditor Teresita Ngan Tian said in the same event that in line with the group’s promotion of franchise development in the country, the AFFI is holding its 11th Filipino Franchise Show from October 12 to 14 at the World Trade Center in Pasay City which is expected to attract prospective entrepreneurs to take part in franchising investment opportunities in food, retail and other services.

“The show will be a marketplace for home-grown franchises with over 300 exhibitors,” she said.

The AFFI which was organized in 1997 is committed to promoting responsible micro, small and medium enterprises through franchising.