What it takes to build up a nationwide franchise brand

MANILA, Philippines - Accounting for over 1,400 brands carried by 200,000 stores licensed to carry these names, franchising appears to be the preferred business model of Filipino entrepreneurs. It is perceived in the Philippines, which ranks fifth in the world for having the most franchise outlets, as a sure way of getting into and staying in business, according to Caloy Ang, founder and CEO of Suds Laundry and Dry Cleaning (SLDC). 

But not all brands are created equal. The franchises that have succeeded are first and foremost backed up by a growing base of clients with needs they are satisfying in their own unique way. Now catering to a  customer base of about 350,000 that returns week after week to its stores throughout the country, Suds is catering to the changing lifestyles of condominium dwellers increasing exponentially in Metro Manila and other key cities and other urbanites that no longer have time or space to do their own laundry.

Now on their 12th year in the highly competitive laundry business, Ang relates that one of their early successes was “getting their chemistry right” beginning with the right detergent in the right dose for different types of clothing. Suds uses specific detergents for delicate, premium and regular-wear clothes. Moreover, automatic dispensers supplied by SLDC partner Diversey ensure the right dosage every time.

The whereabouts of customers’ clothes are also tracked to avoid the pet peeve of clients – missing items. The enterprise-wide program that comes with every Suds franchise documents and tracks items brought to the store. In addition, it also records in real time the performance of the outlet; allows the store owner to order and keep track of the supplies needed for the operations; and even to monitor customer behavior and to dispense rewards to loyal ones. A key driver of Suds’ growth, the program puts into place key systems required to run the business. Proven and tested systems, after all, are the backbone of every growth-driven franchise.

Better yet, all store personnel and owners need to access and organize critical information in an android tablet. Previous to the development of Suds’ tablet-powered program this year, franchisees needed a desktop and a printer to access and retrieve data, relates Ang, a former Intel Quality engineer. A partnership with Allan Tan of Ideyatech, however, facilitated Slingshot – a franchise management system which simplified data access as well inventory management for all stores across the regions. This innovation, which Ang and Tan will soon be making available to other entrepreneurs in other fields, has fueled nationwide growth, a feat for small and medium franchisors.

“It is not easy for a business like ours to cross from Luzon to the Visayas and from the Visayas to Mindanao,” notes Ang. SLDC has conquered analytics as well as supply chain problems by forming nationwide alliances with partners that operate throughout the major regions. A key Suds supplier is Diversey for detergents as well as LG and Maytag for the appliances. Store owners order their supplies online and have the option of paying for them through a BDO-issued credit card relieving all from collection concerns.

The end result for the customer – wherever he may be -- is clothes that keep their shape a longer time and have “the scent of summer,” according to testimonials by Suds customers. Once you satisfy a customer through consistent service levels, he returns again and again. “It takes a lot to build a brand,” according to Ang whose laundry franchise now has top recall in the markets where it has been established. Constant innovation, he says, will ensure that his franchise keeps it high recall.