Franchise group bullish on PH

Thursday, August 18, 2011

DESPITE the jitters felt by most businesses due to the downgrade of the US credit rating, members of the Philippine Franchise Association (PFA) are confident the Philippines, like most Asian countries, will not experience adverse effects to the economy.

With this, they are encouraging local entrepreneurs who operate franchises to join the Franchise Asia 2011 conference in Manila next month.

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Franchise Asia 2011 chairperson Bing Sibal-Limjoco, said this century is the “dawn of Asia” and that the world will see the Asian region grow.

She noted that in the past, when the US economy suffers, the rest of the economies “catch a cold.”

However, she said “not this time.”

For the conference, Limjoco said they are expecting participants from Russia, Taiwan, the United States, France, Czech Republic and some European countries.

“They are all coming to the Philippines to share in the growth of Asia through franchising,” Limjoco said in a news conference yesterday.

Fuel growth

The four-day event begins Sept. 19 and will be held at the SMX Convention Center.

The PFA strongly believes that franchising will continue to fuel the growth of some of the world’s largest and emerging economies, as stated by the 32 countries that attended the World Franchise Council (WFC) meeting in Berlin, Germany last April.

“As articulated in the WFC Berlin Declaration of 2011, the global outlook is bullish for franchised businesses as they are expected to bolster the levels of national income, employment opportunities and investments in the world’s top economies like India and China, as well as Asean markets like the Philippines, Singapore and Malaysia,” said incumbent WFC chair and PFA chairman emeritus Samie Lim.

He noted that reports presented by national franchise associations for 2010 showed franchising multipliers are a vital driver of economic activity.

“Franchising’s important contribution in forging a robust global economy cannot be overstated,” he said.

PRA president Elizabeth Pardo-Orbeta, said the multiplier effect of franchising makes it a “powerful tool” in job creation.

She estimated some one million Filipinos are employed by franchised companies and that suppliers and allied services also create indirect employment.

Orbeta also claimed that five percent of the country’s gross domestic product is from franchising and that it registered $9.4 billion in sales last year.

Aside from speaker presentations, break out sessions and an international franchise exposition, Franchise Asia 2011 will also feature the twin meetings of the Asia Pacific Franchise Confederation (APFC) and the WFC, which will be attended by the heads of national franchise organizations from 43 member countries of both organizations.

The event aims to provide the platform to showcase the best Philippine franchise brands and concepts and provide a gateway for international brands to enter the 650 million Asean market through the Philippines. Organizers believe this proves the Philippines is the “franchise hub of Asia.”

Lim said the meetings will strengthen international cooperation among global franchise players and the joint statement of WFC member-countries that franchising will fuel the economies of developed and newly-industrialized countries.

Top names

The PFA won for the Philippines the bid to host both meetings.

Limjoco said they are expecting top caliber business names, such as Tony Tan Caktiong, who succeeded with the famous Jollibee fast food chains; Jeff Welch of Krispy Kreme doughnuts; Chris Tanco of 7-Eleven; and Edgar Sia II of Mang Inasal fame. The four success stories will be featured as case presentations of industry leaders on the making of successful brands.

The conference will also have a business leaders’ fora on the challenges and opportunities in the Asia-Pacific region, in developed economies and in emerging and growing regions.

Limjoco assured that they have provincial packages at discounted rates for those who live outside of Metro Manila if they want to participate in the conference.