Franchising for P250,000 or less

Franchising is the painless and seamless way of setting up a business. For franchisees, this means buying into a successful formula. The franchisee, for a fee, gets a turnkey business that will ride in the success of the franchiser’s brand.

Responsible franchisers will guide franchisees step by step towards success since success or failure is a reflection on the brand. Responsible franchisers evaluate everything, from site location to store operation, so that franchisees comply with the company’s direction and/or image.

A prospective investor can start a business for P250,000 or even less, according to Dante Lardizabal, business development manager of King of Balls. The company is a member of the Association of Filipino Franchisers Inc.

King of Balls sells 11 varieties of savory morsels like fish balls, squid balls, chicken balls, siomai and kikiam in carts. The cost of a King of Balls franchise, Lardizabal said, is P45,000.

"A franchisee can spend P45,000 to P75,000, depending on the location. For P45,000, you already get a cart," he said.

King of Balls was born six years ago with two carts. Today, the company has over 300 carts across the country. More than 100 of these carts are franchises, Lardizabal said.

Return on investment on a King of Balls franchise is one year or less, he said.

If it’s Mexican fastfood you want, then there is Tacomio with a franchise fee of P100,000. Tacomio is a Mexican quick - service outlet that serves hot, delicious and fresh food right in front of the customer, nothing is pre-cooked. Their menu includes all-meat burritos, quesadillas, soft tacos, nachos, taco salads and Mexican pizzas.

The idea of selling candies in bulk, was introduced by Candy Mix, the first candy specialty store in the Philippines. The franchise fee for a candy stand goes for P190,000 only, but may fetch an investment package of P330,000 for a candy cart. The brand has operated for more than seven years, and carries a wide selection of candies sourced from all over the world.

On the other hand, Fiorgelato, which is owned by AFFI president Ricardo Cuna , is franchising for P250,000. Milkin Corp., which owns the company, is a Filipino-Italian venture that manufactures pure Italian ice cream made from 100 percent fresh milk and other high quality ingredients imported from Italy.

AFFI public relations officer Rommel Juan, also says, "according to studies, 95 percent of franchise businesses succeed because a system is already in place."

Juan said AFFI is a venue for entrepreneurs such as franchisers and franchisees to share best practices and trade trends for mutual advancement.

One does not have to start big. The organization is holding the 5th Filipino Franchise Show 2006 "Franchise Fever" on July 7 to 9 at the Megatrade Hall 2, 5th Flr., Bldg. B, SM Megamall, EDSA, where a lot of small but profitable livelihood opportunities abound. The event will not only showcase the products and services of AFFI members, but will also provide insights and mentoring and even offers product and services sampling.

"Franchise Fever is the organization’s way of promoting responsible franchising and paying tribute to owners of small and medium enterprises, which are at the forefront of economic development," said Juan who owns Binalot, one of the country’s highly successful homegrown franchises.