CEBU, Philippines - More people are becoming open and interested in franchising as a means to invest their heard-earned money with an assurance of return of investments.
This was noted during the 10th Cebu Franchise Expo 2009 held recently at SM City Cebu Trade Hall, with exhibition organizers attesting that they have already achieved the 5,000 target of number of visitors on the second day of the three-day event.
RK Franchise Consultancy CEO Rudolf Kotik said that they are very happy with the turnout of participants, which they noted have been continually increasing every year.
Kotik said that more people see the successful effect of franchising, and in times of crisis like this, it is the safest way of doing business.
Pek Jen Lim, a Cebu-based businessman said that he believes in the success of franchising as the turnover is fast, especially in the food industry which he is interested in.
Lim said that he saw potential businesses that he could venture into through the Franchise expo but he is much more interested in franchising on food products. Lim said that he already deals with food in his current businesses but he wishes to continue such as it is the most supported sector saying “all people eat.’
Lim also said that he sees franchising as the best way to do business even in times of the crisis, since he does not need to experiment therefore not risking his money.
He said that there are things he makes sure though before he goes into franchising like ask for the assurance of his ROI, the kind of food he will be selling and if it could be maintained in the market.
Lim also said that he also sees to it that the Suggested Retail Price would fit the target market and the place where he would want to put up the business.
Ernie Alix, who is new to the business and decided to franchise in a food establishment after he retired this year, said that since he is just starting, it would be a wise move to “use the expertise of other people.”
Alix, who was a former executive of a known-oil company, said that franchising is a safer option for those starting in the business since it would mean making use of the management system of the franchiser.
Alix said he sees the location and the affordability of the products as important factors for the success of a franchise outlet.
Also, he said that he asks for a sample of the cash flow from the company in order to ensure the ROI.
He said that market research is also important and he personally does actual research on the growth of the same franchise outlets to see how it is accepted by the market.