Current opportunities in franchising industry are growing, something which small and medium enterprises (SMEs) in Negros Occidental are urged to take advantage of.
Philippine Franchise Association (PFA) Vice Chairman Bing Sibal-Limjoco, who spoke at the seminar on franchising held at L'Fisher Hotel in Bacolod City on Wednesday, August 29, said the country is now considered as the franchise hub in Asia.
Sibal-Limjoco, also the chief executive officer of Francorp Philippines, said franchise concepts in the country have grown, from only 50 to almost 2,000 now.
"There are so many interested investors, they want to buy a franchise," she said, adding that "since we started franchising in 1995, we have proven that getting a franchise enables small enterprises to become medium and even large one."
Franchising method of doing business by which a franchisee is granted the right to engage in the business offering, selling or distributing goods or services under a marketing plan or system prescribed in substantial part by a franchisor and which is substantially associated with the franchisor's trademark, name, logo or advertising.
In Negros Occidental, there are currently few existing franchise concepts including Felicias, Chefs and Bakers, and Munsterific.
Potato Corner, whose one shareholder is from Negros Occidental, now has a total of 140 company-owned outlets, 843 local franchises, and 181 international franchises.
"Franchising potentials are still huge here," Sibal-Limjoco said, stressing that "Negrenses are really into entrepreneurial, thus, I believe that there are more to come."
The franchising seminar opened the 27th Visayas Area Business Conference and Agriculture and Livestock Expo, which will run until August 31.
Dubbed "Franchise Negosyo para sa Bacolod," the seminar attended by at least 40 local enterprises was organized by the PFA and Metro Bacolod Chamber of Commerce and Industry (MBCCI).
Trends
In her talk, Sibal-Limjoco underscored the trends and opportunities in the Philippine Franchising Sector.
Sibal-Limjoco, who is also the president of the Philippine Chamber of Commerce and Industry (PCCI), said food remains a major sector for franchising.
"We, Filipinos, eat five times a day so definitely the growth of the food industry is there," she said, adding that "although globally it is health and wellness sector."
Other thriving sectors in the country's franchising industry are related to health, beauty, and wellness, among others with major players still based in Metro Manila.
Challenges
Amid the growing opportunities, there are still challenges hounding the franchising industry, especially on the regional level.
The PFA official stressed that franchisors here are, maybe, a bit hesitant as they have not yet recognized the potentials of franchising.
Francorp clients like Chefs and Bakers and Munsterific are actually ready for more franchising ventures.
Sibal-Limjoco, however, said that "it is just that sometimes they are here in Bacolod City while the buyers are in Metro Manila.”
They (enterprises) must seriously think about it because those that went into franchising have really grown, Sibal- Limjoco.
"Entrepreneurs really have to build the mindset that franchising is positive. Its concept is using other people, other people’s money, and other people’s organization," she added.
Moreover, Negrense enterprises are advised to saturate first the province before going to outside areas.
Many local establishments still do not have franchises here thus, the potential is not yet fully maximized, Sibal-Limjoco also said.
Other measures
Aside from capacitating enterprises through training and seminars, the PFA is also collaborating with other organizations and agencies to address possible risks.
To prevent possible adverse effects of challenges in agriculture, the association is meeting today stakeholders in the agriculture sector.
"We will tell them exactly what we want including the elimination of the middlemen. It is better that the farmers know what the franchising industry needs so they will know what they are going to plant," she said.
Optimistic
For MBCCI, its president Roberto Montelibano told SunStar Bacolod that local enterprises just need to have more awareness especially on the "requirements" in franchising.
Through this seminar, participating SMEs were also taught on the advantage of franchising, he said.
Montelibano said they want SMEs to be ready and more capable of expanding their businesses through one, franchising.
"This is one of MBCCI's means to empower local enterprises, enabling them to grow from small to bigger ones," he said, adding that with more "push" the chamber is optimistic to contribute to the development of franchising industry in the province.