MANILA, Philippines — The Philippine Franchise Association (PFA) sees 2021 to 2025 as the golden years of the franchise industry.
Speaking at the Franchise Asia Philippines virtual conference, PFA founder and chairman emeritus Samie Lim said that while the economy is at its worst due to the coronavirus pandemic and many see recovery would not take place for years, the story is different for the franchise industry.
“I believe that from the ashes of the mediocre and fake franchises will emerge a new breed of strong franchisor and franchisee to serve the pent up demand of consumers as we enter the golden years of franchising starting 2021 and hitting the peak by 2025,” he said.
This, as the current situation presents franchisors a great opportunity.
To succeed in the franchise industry, Lim said all that is needed is a good franchisee and a good location.
At present, he said there are many qualified potential franchisees, including those who have lost their jobs or were forced to retire as the companies they work for were hit by the pandemic.
“These groups of people are ideal franchisees because they have the need to survive and the motivation to thrive. They will make sure that whatever is left of their savings will be put to good use,” he said.
He said another group of potential franchisees that emerged during the pandemic are micro, small and medium enterprises which had to close shop because their businesses were considered non-essential.
“Aside from having the time, money and network, that are required of an ideal franchisee, they already have actual experience of running a business, which will be a big plus in operating a franchise,” he said.
He also said there is available commercial space at this time.
“Since there will be many vacant spaces available at lower rental rates, this gives the franchisor the perfect opportunity to expand not only in the Philippines, but also worldwide,” he said.
In the same event, PFA chairman Richard Sanz said the PFA Secretariat still gets inquiries from other countries on how to expand in the country.
Citing EGS, a US-based franchising think tank, Sanz said the Philippines ranks among the best destinations for international franchises as the country got an average of 2.1, with one as the highest and four as the lowest.
“The Philippines ranked high in market size, IP (intellectual property) protection, ease of entry, economic factors, long-term investment risk and even in the projected COVID-19 recovery,” he said.
He also said the crisis has shown that overseas outlets of Philippine franchise brands were the lifesavers when the Philippine-based stores were forced to close because of the lockdown.
“It is evident, therefore, that franchising can help make the Philippines, a nation of opportunities. Hence, it is imperative for us to keep up the fight and to never give up,” he said.