Franchising sector eyes 10 to 13 percent growth in 5 years

MANILA, Philippines — The country’s franchising industry expects to grow by 10 to 13 percent in the next five years, driven by the food and service sectors, as well as the potential for agricultural franchising.

“We’re actually looking at the low side.  It’s going to be 10 percent for the higher end. It’s going to be 13 percent growth in the next five years,” Philippine Franchise Association (PFA) chairman Sherill Quintana said in a media briefing yesterday.

“Of course we’d like to be able to see that for next year, before next year finishes. But our planning is really on a five years stretch,” she said.

According to the PFA, the country’s franchising industry generated P27 billion in revenues in 2022.

Quintana identified the food, as well as the service sectors as among the franchising industries that have been seeing growth.

“We’ve seen a lot of growth now for the service sector where there’s a clamor in the overseas market, but of course food has been really a winner through and through,” Quintana said.

In line with the services sector, Quintana added that there are a lot of opportunities for concepts in training, the provision of education outside the country.

“As we know the Filipinos are really good at this, you know, providing training and providing the support. So we can see a lot of opportunities, for example, in the spa and salon industry that are able to provide these training services,” Quintana said.

For his part, PFA president Chris Lim expressed the potential for franchising in the agriculture sector, noting opportunities from supplying agricultural inputs, as well as service in the sector.

In line with further growing the country’s franchise industry, the PFA has been encouraging more Filipino brands to go international.

The PFA said earlier that it aims to double the number of Philippine franchise brands that have expanded globally to 50.

Aligned with this goal, the PFA is set to host the twin meetings of the Asia-Pacific Franchise Confederation (APFC) and the World Franchise Council (WFC) from Oct. 25 to 27.