How To Choose a Franchise Business (Plus Updated List of Best Franchise Business Opportunities)

Despite over 70% of franchises1 being affected by the pandemic, the Philippine Franchise Association (PFA) still strongly believes in the recovery of the franchising industry in the country. In fact, they even hosted the virtual expo Franchise Asia Philippines 20212 with the belief that there are business opportunities available for enterprising Filipinos.

If you are thinking of franchising, it’s a good idea to consider franchises that adapted and thrived during the pandemic. Although local restrictions have become more relaxed, we won’t know when the pandemic will be over, or if another similar event will come.

Listed below are some of the best franchise business opportunities in the Philippines for the post-COVID era and beyond. 

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At a Glance: The 9 Best Franchise Business Opportunities in the Philippines for Post-COVID Era (and Beyond)

franchise business philippines

According to the PFA, it’s a great opportunity now to invest in a franchising business and ride the wave of the industry’s recovery. They are predicting a franchising golden age by 20253, but only for businesses that can adapt to the new normal. Consider the following franchise businesses: 

1. Courier Services

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  • Overview: A courier service is basically in charge of getting goods from one location to another. As e-commerce boomed during the pandemic, so too did courier services as the primary delivery option for people who were doing their shopping online. Demand has not slowed down4 from the start of the boom, so a courier service franchisee can still steadily earn from commissions on their deliveries. 
  • Franchise Brands: Ninjavan, 2Go Express.
  • Cost Estimate: Franchise Fee – from PHP 50,000; Total Investment – PHP 200,000 to 1M (depending on the delivery vehicle needed).
  • Pros: 1) Strong e-commerce presence means demand won’t die down; 2) As a part of a franchise, you will get commissions naturally from deliveries assigned to your area.
  • Cons: 1) Possibly expensive investment due to delivery vehicle costs; 2) There’s a lot of competition in this industry, from global logistics companies to delivery apps; 3) Traffic and gas prices might affect your income.

2. Financial Services

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  • Overview: The number of Filipinos using digital payments grew as much as 5000% in 2020 (“Updates on Booming Business Sectors in the Philippines’ Lockdown”, 2021). Financial service franchises helped power this boom as Filipinos used them for paying bills and sending money to relatives during the lockdowns. As digital payments have become a more acceptable method of transaction for Filipinos, they should remain a profitable opportunity in the long run. 
  • Franchise Brands: Bayad Center, ML Express, ExpressPay.
  • Cost Estimate: Franchise Fee – from PHP 100,000; Total Investment – from PHP 150,000 to PHP 400,000 depending on the store setup.
  • Pros: 1) Always have demand because money and transactions are a normal part of people’s daily lives; 2) It’s a simple business with no complicated or expensive equipment.
  • Cons: 1) High competition with more and more financial service options available; 2) Strict day-to-day accounting is a must.

3. Water Services

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  • Overview: According to the International Labour Organization5, the demand for clean water in the Philippines actually went up during the pandemic. Water service franchise brands were able to adapt by introducing stricter health and safety protocols and adding smaller bottle options. If you can get customers to trust the quality of your water business, then you can expect excellent sales. 
  • Franchise Brands: LivingWater, Aquabest, Crystal Clear.
  • Cost Estimate: Franchise Fee – from PHP 100,000; Total Investment – from PHP 600,000 to PHP 700,000 depending on the water source.
  • Pros: 1) As a basic commodity, the demand for water is always there; 2) It’s a straightforward business where you only need to worry about water quality and customer relationships.
  • Cons: 1) Will not survive in areas with high competition; 2) Can be an expensive investment for franchisees who are just starting out; 3) Customers can be prone to switching to a lower-priced alternative.

4. Mini-Groceries, Convenience Stores, & Meat Shops

  • Overview: The demand for food and other living necessities didn’t change during the pandemic. In fact, they are one of the sectors6 that thrived during the pandemic and lockdowns. Mini-groceries, meat shops, and convenience stores that were able to provide delivery options and safer shopping experiences were the biggest winners. If you want to franchise one, you’ll need to be able to do the same as part of the requirements of the new normal. 
  • Franchise Brands: Alfamart, 7-11, Monterey.
  • Cost Estimate: Franchise Fee – from PHP 200,000 to 1M; Total Investment – from PHP 3M to PHP 5M depending on the brand, store size, and inventory.
  • Pros: 1) There will always be a demand for food and living necessities; 2) The large range of products means you can cater to a bigger market.
  • Cons: 1) High investment costs are a barrier for most franchisees; 2) Very strict inventory management is needed to avoid theft and spoilage.

5. Pharmacies

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  • Overview: As hospitals filled up with COVID patients during the pandemic, pharmacies were many people’s only access to healthcare. Access to medicine and health supplements from pharmacies will always be necessary for people’s lives. As people have become more health-conscious, pharmacies have never been more important than they are now as we move towards the new normal. 
  • Franchise Brands: Generika, TGP The Generics Pharmacy, Farmacia Ni Dok. 
  • Cost Estimate: Franchise Fee – from PHP 210,000; Total Investment – from PHP 600,000 depending on the store size and inventory. 
  • Pros: 1) Medicine will always be an essential good; 2) Most pharmacy franchises offer more accessible generic medicine.
  • Cons: 1) Initial investment may be high due to the need to carry various medicines; 2) Pharmacies are a highly regulated industry that requires specific protocols and the employment of pharmacists.

6. Automotive Services & Car Washes

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  • Overview: Automotive services and car washes remain relevant franchises despite a 35% decrease in vehicles sold in 20207. A good 200,000 units were still bought with 150,000 of them as passenger cars. While there was a decreased need to travel during the lockdowns, many Filipinos still opted to get their own vehicles for fear of crowded public transportation. Now, with much lesser restrictions, people have been coming back to work and have been going to malls using their own vehicles. Automotive service franchises will still be needed now and in the future. 
  • Franchise Brands: Rapide Auto Services, Motech, CycleHouse, NiceDay Car Wash.
  • Cost Estimate: Franchise Fee – from PHP 170,000 (for car washes) and from PHP 1.5M (for auto services); Total Investment – from PHP 350,000 (for car washes) and from PHP 4M (for auto services).
  • Pros: 1) Car washes are simple businesses with a modest initial investment requirement; 2) Vehicle maintenance and cleaning will always be a necessity due to natural wear and tear.
  • Cons: 1) Auto repair franchises are an expensive investment due to the need for a large store, skilled technicians, and specialized equipment; 2) People may prefer getting their auto repair work done at the manufacturer’s shop.

7. Home Services

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  • Overview: Home service businesses such as laundromats, cleaners, and handymen were hit hard during the lockdown as people opted to do most of the home care work themselves. However, as work shifted to the home as well, people had less time again to do chores. Franchises that were able to hold out and provide mobile, delivery, and other convenient home care options began to boom again. 
  • Franchise Brands: Quicklean, Suds Laundry, Clean Zone PH, Mr. Butler.
  • Cost Estimate: Franchise Fee – from PHP 250,000; Total Investment – from PHP 750,000 to PHP 2M depending on the store size and the number of equipment.
  • Pros: 1) People will always need home services such as laundry and cleaning; 2) Despite being a ‘comfort’ service, the industry has shown resilience even during the pandemic and lockdowns.
  • Cons: 1) High investment costs due to the equipment for laundromats; 2) People can opt to do home care and repair work on their own.

8. Food & Beverage

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  • Overview: The food and beverage industry was among the hardest hit by the pandemic with sales expected to decline by 13%8 in 2021 to a new 7-year low. A food and beverage franchise that relies on foot traffic won’t survive. However, if your franchise has a strong e-commerce presence, it can ride the wave of a 40% increase in online sales in 2021. This isn’t recommended for beginners. 
  • Franchise Brands: Baliwag Lechon Manok, Mr. Liempo, Serenitea, Angels’ Pizza.
  • Cost Estimate: Franchise Fee – from PHP 350,000; Total Investment – from PHP 500,000 depending on your store type and brand.  
  • Pros: 1) Food will always be in demand; 2) It’s a simple business where you only need to maintain the quality of your food and manage your deliveries.
  • Cons: 1) Most of the low-cost food and beverage franchises that rely on foot traffic, such as carts, are not recommended during this time; 2) Must be e-commerce and delivery ready.

9. Education

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  • Overview: The shift to online learning during the pandemic has not been easy for many students. Education franchises, such as supplemental education or review centers, addressed the deficiencies in the online setup. Parents who want to help their kids achieve their full potential will want to enroll them in an education center.
  • Franchise Brands: Kumon, Dr. Carl E. Balita Review Center, Seriously Addicted Math (SAM).  
  • Cost Estimate: Franchise Fee – from PHP 50,000; Total Investment – from PHP 350,000 to PHP 2M depending on whether you have an existing structure.  
  • Pros: 1) There will always be students and parents who wish to secure a sound future through education; 2) Helping children reach their desired future is worthwhile and fulfilling.  
  • Cons: 1) The cost of construction can be expensive; 2) Instructors need to be retrained every so often due to updates in the education field.  

1. Franchises With Initial Investments From 100K and Below

Food and beverage carts | Coffee carts | Vending machines 

2. Franchises With Initial Investments From 500K and Below

Food and beverage kiosks | Service machines | Motorcycle retail | Car washes | Pet grooming | Money transfers | Payment centers | Health & Beauty retail stores 

3. Franchises With Initial Investments From 1M and Below

Takeout grills | Water stations | Early childhood learning centers | Pharmacies | Courier services | LPG retailer | Laundromats | Cleaners | Handyman | Repair services | Electronic services | Spas 

4. Franchises With Initial Investments Above 1M

Restaurants | Bakeries | Coffee houses | Review centers | Mini-Groceries | Convenience stores | Meat shops | Auto repair shops | Gas stations | Pet stores | Pet spas & hotels | Cybercafes | Bookstores | Clothing stores | Furniture stores | Sporting goods stores | Dialysis centers | Gyms | Beauty salons 

The Ultimate List of Franchise Business Opportunities in the Philippines

1. Food & Beverage Carts/Kiosks

Food and beverage carts have a limited menu that serves only their specialties. The same can be said for food and beverage kiosks, which is a slightly larger version of the cart. Franchise brands under this category have found success by providing reasonably priced tasty food and beverages at convenient locations that their customers keep coming back to.

Due to their simplicity and relatively inexpensive nature, they are a fan favorite among aspiring franchisees. Notable brands include Potato Corner, Master Siomai, and Fruitas

Name of BusinessFranchise FeeTotal Investment
ChatimePHP 300,000 – PHP 500,000PHP 4,000,000 – PHP 8,000,000
BibingkinitanPHP 200,000PHP 500,000 – PHP 1,500,000
Potato CornerPHP 100,000 – PHP 150,000PHP 200,000 – PHP 1,200,000
Pepa Wings PHP 200,000 – PHP 250,000 PHP 308,000 – PHP 860,000
Papa’s Available upon inquiry PHP 500,000 – PHP 600,000
Tapawarma PHP 180,000 PHP 485,000 – PHP 610,000
House of Taho PHP 180,000PHP 575,000
Johann Coffee & BeveragesPHP 99, 000PHP 500,000 – PHP 550,000
Supreme Hotdog PHP 150,000 PHP 420,000 – PHP 550,000
Bang Bang BangusPHP 200,000PHP 450,000 – PHP 550,000
Famous Belgian Waffles PHP 380,000 – PHP 480,000 PHP 380,000 – PHP 500,000
Guri-GuriPHP 180,000PHP 400,000 – PHP 480,000
ZaguPHP 650,000 – PHP 850,000Available upon inquiry
Ferino’s BibingkaPHP 300,000PHP 425,000 – PHP 850,000
Mr. SoftyPHP 100,000PHP 500,000
Mango RoyalPHP 150,000PHP 400,000
Santino’s Supreme SlicePHP 50,000PHP 400,000
Snack-A-ttackPHP 399,000Available upon inquiry
Mr. PotatoAvailable upon inquiryPHP 350,000
Siomai HousePHP 300,000 – PHP 400,000PHP 350,000
Kerrimo PHP 100,000 PHP 250,000 – PHP 350,000
Tempura KingPHP 120,000PHP 336,000
Citrus ZonePHP 120,000PHP 290,000 – PHP 350,000
Master SiomaiPHP 313,600PHP 280,000 – PHP 313,600
Okey Na OkoyPHP 350,000Available upon inquiry
Chick ‘en GoPHP 200,000 – PHP 500,000PHP 50,000 – PHP 125,000
Santino’s Supreme Slice PizzaPHP 350,000Available upon inquiry
Kuro Kuro CrofflePHP 49,999,000 – PHP 79,999,0000Available upon inquiry

2. Restaurants

Restaurants are a food service business that covers a large floor area due to offering a dedicated dining space as well as having a larger variety of food and beverage options than kiosks. Jollibee is probably the most successful local restaurant franchise to date with over a thousand branches. There are also less expensive restaurant franchises such as Angel’s Pizza and Fatboy’s Pizza

Name of BusinessFranchise FeeTotal Investment
Kenny Rogers RoastersAvailable upon inquiryPHP 12,750,000 – PHP 39,650,000
Wendy’sPHP 2,000,000Available upon inquiry
JollibeeAvailable upon inquiryPHP 35,000,000 – PHP 55,000,000
McDonald’sPHP 1,150,000PHP 45,000,000 – PHP 60,000,000
Gerry’s GrillPHP 3,000,000Available upon inquiry
GreenwichPHP 815,000PHP 20,000,000 – PHP 25,000,000
ChowkingPHP 1,000,000PHP 13,000,000 – PHP 15,000,000
Tokyo TokyoPHP 1,200,000PHP 10,000,000
Tim Hortons PHP 25,000 – PHP 50,000 PHP 5,190,000 – PHP 25,950,000
Shakey’sPHP 1,500,000 – PHP 2,200,000PHP 18,000,000
Max’sPHP 2,000,000PHP 15,000,000 – PHP 22,000,000
Mang InasalPHP 1,200,000PHP 12,000,000 – PHP 18,000,000
Yellow CabPHP 1,025,000PHP 10,000,000 – PHP 12,000,000
Angel’s PizzaPHP 1,500,000PHP 11,000,000 – PHP 12,500,000
Tokyo TokyoPHP 1,400,000PHP 10,000,000
Samgyeopsal HousePHP 500,000PHP 6,500,000 – PHP 7,500,000
Cucina VictoriaPHP 1,200,000PHP 6,500,000
Jay-J’s GrillPHP 500,000PHP 500,000 – PHP 6,500,000
Chic-BoyPHP 950,000 PHP 5,000,000 – PH P 6,000,000
GoodAh!!!PHP 750,000PHP 3,500,000 – PHP 4,500,000
Ineng’s Special BBQPHP 350,000PHP 2,500,000 – PHP 3,500,000
Delongtes Seafoods Grills & BarbequePHP 400,000PHP 2,500,000
Fatboy’s PizzaPHP 450,000 – PHP 550,000PHP 750,000 – PHP 1,000,000
Alberto’s PizzaPHP 300,000PHP 300,000 – PHP 1,000,000
Angus Tapa CentralePHP 400,000PHP 1,500,000
BonchonPHP 40,000PHP 516,994 – PHP 1,097,419
Chef Resty’s Roast Beef Carving StationPHP 350,000Available upon inquiry
Mandi’s Kanto RibsPHP 150,000 – PHP 300,000PHP 500,000 – PHP 700,000
BinalotPHP 600,000 – PHP 700,000Available upon inquiry
Smokes Sizzling and GrillPHP 250,000PHP 650,000
Hen LinPHP 224,000PHP 500,000
Adobo ConnectionPHP 650,000Available upon inquiry
Pansit Malabon ExpressPHP 350,000 – PHP 600,000Available upon inquiry
Esting’s BellychonPHP 550,000Available upon inquiry
Uncle sam’s Burger and SteakPHP 300,000 – PHP 600,000Available upon inquiry
Peri-Peri Charcoal ChickenPHP 10,000Available upon inquiry
ArmyNavy Burger and BurritoAvailable upon inquiryAvailable upon inquiry
Buffalo’s Wings N’ ThingsAvailable upon inquiryAvailable upon inquiry
Syudad by Barrio FiestaAvailable upon inquiryAvailable upon inquiry
CravingsAvailable upon inquiryAvailable upon inquiry
Roy’s BistroAvailable upon inquiryAvailable upon inquiry
My Greek TavernaAvailable upon inquiryAvailable upon inquiry
Mi’Grande PizzaAvailable upon inquiryAvailable upon inquiry
Cancio’s RestaurantAvailable upon inquiryAvailable upon inquiry
Classic SavoryAvailable upon inquiryAvailable upon inquiry

3. Takeout Grills

Filipinos love their lechon manok (grilled chicken) and baboy (pork). Takeout grills cater to this market by packaging these Filipino favorites as a convenient take-home option that customers can bring to their families. Notable franchises include Baliwag Lechon Manok, Andok’s, and Mr. Liempo

Name of BusinessFranchise FeeTotal Investment
Mr. LiempoPHP 350,000PHP 295,000 – PHP 425,000
AndoksPHP 300,000 – PHP 500,000Available upon inquiry
Chooks-To-GoAvailable upon inquiryAvailable upon inquiry
Baliwag Lechon Manok at LiempoPHP 250,000Available upon inquiry
Botoy’sPHP 50,000PHP 500,000
Onyx Ogis Lechon ManokAvailable upon inquiryAvailable upon inquiry

4. Bakeries

What’s not to like about bread? It’s filling, tasty, and a staple of Filipino breakfasts and meriendas. Bakery franchises such as Julie’s Bake Shop and Breadpoint serve various kinds of Filipino favorites including pandesal, monay, and ensaymada

Name of BusinessFranchise FeeTotal Investment
Red RibbonPHP 600,000PHP 6,000,000 – PHP 7,000,000
Krispy KremePHP 1,275,628PHP 14,031,910 – 98,056,681
GoldilocksPHP 800,000PHP 600,000,000 – 800,000,000
Pancake HousePHP 1,250,000PHP 10,000,000 – PHP 18,000,000
Pan De Zab BreadPHP 350,000 – PHP 875,000PHP 1,500,000 – PHP 3,200,000
Julie’s BakeshopAvailable upon inquiryPHP 1,740,000 – PHP 2,000,000
Remilly’s Yema CakeAvailable upon inquiryPHP 1,500,000
Mister DonutPHP 100,000PHP 310,000 – PHP 2,400,000
Manolette BakeshopPHP 350,000PHP 1,100,000
JB’s Garlic PandesalPHP 150,000PHP 550,000
CravingsAvailable upon inquiryAvailable upon inquiry
Breadpoint BakeshopPHP 350,000Available upon inquiry
Magic MeltPHP 50,000PHP 120,000

5. Cafes & Coffee Houses

For many hard-working Filipinos, the boost from drinking their favorite cup of coffee gets them through the day. Coffee carts and coffee houses serve this need by strategically locating themselves in places where people can get a cup of coffee as they travel, work, or relax. Among coffee cart franchises, Star Frappe stands out as a provider of delicious and affordable coffee. Meanwhile, notable coffee house franchises include Coffee Bean & Tea Leaf and Figaro

Name of BusinessFranchise FeeTotal Investment
Figaro CoffeeAvailable upon inquiryPHP 2,500,000 – PHP 7,000,000
Caffe La TeaPHP 250,000 – PHP 650,000PHP 600,000 – PHP 4,000,000
Share TeaPHP 500,000PHP 3,500,000 – PHP 4,000,000
Majestea Milk TeaPHP 299,000PHP 2,300,000 – PHP 2,700,000
Mocha Blend CafePHP 350,000 – PHP 750,000PHP 2,000,000 – PHP 5,000,000
Bialetti Caffe PhilippinesPHP 350,000 – PHP 750,000Available upon inquiry
The Coffee Bean & Tea LeafPHP 880,000PHP 2,500,000 – PHP 3,000,000
Moon leaf Tea ShopPHP 888,000PHP 488,000 – PHP 1,500,000
Coffee BreakPHP 650,000Available upon inquiry
Milk TealiciousPHP 500,000PHP 900,000 – PHP 1,200,000
Island TeaPHP 175,000 – PHP 250,000PHP 350,000 – PHP 1,200,000
Seattle’s Best CoffeeAvailable upon inquiryAvailable upon inquiry
Ku Chi TeaPHP 350,000PHP 1,500,000
Happy CupPHP 250,000 – PHP 750,000Available upon inquiry
Sugar Panda MIlk TeaPHP 180,000PHP 600,000
Star FrappePHP 99,000PHP 500,000
FroteaPHP 140,000PHP 350,000
OchadoPHP 350,000PHP 150,000
My Girl Milk Tea and CoffeeAvailable upon inquiryAvailable upon inquiry

6. Water Stations

Water stations are the main sources of affordable, clean, and safe drinking water for Filipinos, particularly those living in urban areas. They deliver large bottles of drinking water that conform to the standards set by the Department of Health. It is a fiercely competitive industry and brands such as Aquabest, Bluewaters, Living Water and Crystal Clear have risen above the rest. 

Name of BusinessFranchise FeeTotal Investment
H2O Mineral PlusPHP 50,000 – PHP 100,000PHP 250,000 – PHP 580,000
Crystal ClearAvailable upon inquiryPHP 600,000
AquahealthAvailable upon inquiryAvailable upon inquiry
AquabestPHP 100,000PHP 500,000
Aquasoft WatersAvailable upon inquiryPHP 400,000
Living waterAvailable upon inquiryPHP 250,000
Bluewaters Water StationPHP 80,000 – PHP 148,000Available upon inquiry

7. Education

It’s no surprise that Filipino parents are willing to pay money to further the education of their children, especially with their futures on the line. There are different kinds of education franchises such as review centers and early learning centers. Take note that education franchises require additional government registration. This is true even for well-known franchise brands such as Kumon and Dr. Carl E. Balita Review Center

Name of BusinessFranchise FeeTotal Investment
Canadian Tourism and Hospitality Institute PHP 1,000,000PHP 10,000,000 – PHP 16,000,000
Gymboree Play & Music PhilippinesPHP 4,000,000 – PHP 7,000,000PHP 6,147,636 – PHP 14,167,823
Tinker HousePHP 250,000PHP 800,000 – PHP 1,000,000
AlohaPHP 500,000PHP 765,000 – PHP 1,000,000
KumonPHP 60,480PHP 600,000 – PHP 800,000
The Reading StationPHP 400,000PHP 400,000 – PHP 800,000
Bricks 4 KidzPHP 280,000PHP 566,000 – PHP 983,000
Seriously Addictive MathematicsPHP 300,000PHP 350,000 – PHP 800,000
Ahead Learning Systems, Inc.Available upon inquiryAvailable upon inquiry
Nutty ScientistsAvailable upon inquiryAvailable upon inquiry

8. Pharmacies

Pharmacies are stores that sell medicine, health care products, food supplements, beauty products, and other similar items. When the Generics Act was passed, many Filipinos now had access to effective and affordable medicine. With the popularity of generic medicine, franchise brands such as Generika and TGP The Generics Pharmacy also began to start popping up everywhere. 

Name of BusinessFranchise FeeTotal Investment
Farmacia Ni DokPHP 99,000 – PHP 149,000PHP 399,000 – PHP 1,900,000
Southstar DrugPHP 99,000PHP 700,000 – PHP 1,100,000
Sacred Heart of Jesus PharmacyPHP 275,000PHP 1,500,000
The Generics PharmacyPHP 150,000PHP 674,000
Gamot PublikoPHP 160,000PHP 600,000
St. Francis Generic DrugAvailable upon inquiryAvailable upon inquiry

9. Courier Services

By providing on-demand, fast, and reliable logistic solutions, courier services have been thriving during the e-commerce boom. Courier services can differ in scale; some handle only local deliveries, while others are able to handle international ones. Noteworthy courier service franchises include 2Go Express and Ninjavan

Name of BusinessFranchise FeeTotal Investment
LBC ExpressPHP 700,000 – PHP 1,000,000Available upon inquiry
TokTokPHP 16,888,00PHP 58,888,000 – PHP 288,888,000
2Go Express TravelAvailable upon inquiryAvailable upon inquiry
NinjavanAvailable upon inquiryAvailable upon inquiry
J&T ExpressAvailable upon inquiryAvailable upon inquiry
JRS ExpressAvailable upon inquiryAvailable upon inquiry

10. Mini-Groceries, Convenience Stores & Meat Shops

By providing Filipinos with food, beverage, and other living necessities without the hassle of going to supermarkets, the mini-grocery, convenience store, and meat shop brands were able to find a market of their own. There’s a popular brand in almost every corner, including 7-11, Ministop, Alfamart, and Monterey

Name of BusinessFranchise FeeTotal Investment
Ultra MegaPHP 350,000PHP 10,000,000 – PHP 15,000,000
7 ElevenPHP 600,000PHP 3,500,000 – PHP 5,000,000
MinistopPHP 600,000PHP 3,000,000
MontereyPHP 336,000PHP 1,500,000 – PHP 2,800,000
Save On SurplusPHP 200,000PHP 1,500,000 n- PHP 2,500,000
Magnolia Chicken StationPHP 200,000PHP 2,300,000
VROSS Meat ShoppePHP 150,000PHP 2,000,000
Family MartPHP 500,000PHP 4,000,000 – PHP 8,000,000
Munsterific Convenience StorePHP 500,000PHP 2,500,000

11. Automotive Services & Car Washes

Automotive maintenance franchises, such as Rapide, compete directly with repair centers of vehicle manufacturing brands by providing a low-cost but quality alternative. There are also franchises that are all about selling vehicles, such as Cycle House, a franchise known for affordable motorcycle retail and repair solutions. Franchises for car washes and other kinds of automotive services are also available.

Name of BusinessFranchise FeeTotal Investment
RapidePHP 1,450,000PHP 4,000,000 – PHP 7,000,000
Tommy’s ExpressPHP 2,500,000Available upon inquiry
Niceday CarwashPHP 395,000Available upon inquiry
Mr. CleanPHP 1,785,280PHP 2,417,500 – PHP 3,271,000
Speedy1 CarwashPHP 400,000PHP 4,100,000
MotechPHP 1,500,000 PHP 1,500,000
Cycle HousePHP 50,000PHP 298,000
XOOOOM AutoSpaAvailable upon inquiryAvailable upon inquiry

12. Petroleum Products & Gas Stations

Local franchises that deal with petroleum products mainly sell LPG tanks for residential and commercial customers. Some known brands include Brentgas, Regasco, and M-Gas. Gas stations, where vehicles are refueled, are also available for franchising but they can be a very expensive investment with prominent brands including Shell, Petron, and Phoenix

Name of BusinessFranchise FeeTotal Investment
PetronPHP 100,000PHP 1,000,000 – PHP 2,500,000
Phoenix LPGPHP 100,000PHP 620,000 – PHP 1,000,000
Brent GasPHP 168,000PHP 600,000
M-GasPHP 100,000PHP 335,000 – PHP 370,000
ShellAvailable upon inquiryPHP 3,000,000 – PHP 5,000,000
Seaoil Gas StationPHP 250,000Available upon inquiry

13. Home Services

There are many kinds of home service franchises available including laundromats, cleaners, and handymen. By providing families with affordable and convenient options for doing the housework, these franchises were able to grow. Laundromat franchises include Quicklean and Suds Laundry. Clean Zone PH is an example of a cleaning franchise, while Mr. Butler is both a handyman and cleaning business. 

Name of BusinessFranchise FeeTotal Investment
QuickleanPHP 336,000PHP 3,000,000
Save 5PHP 188,000PHP 1,120,000 – PHP 2,180,000
Suds LaundryAvailable upon inquiryPhp 1,500,000
Clean Zone PHPHP 250,000PHP 250,000 – PHP 750,000

14. Repair Services

It’s natural for things to break over time. That’s why there are various kinds of repair services available for different kinds of goods. Mr. Quickie is an established franchise that handles repair work for shoes and watches. Paras Alter Station is another specialty repair store that is well known for its clothing repair and alteration services. 

Name of BusinessFranchise FeeTotal Investment
Power FixPHP 300,000PHP 1,500,000
Mr. QuickiePHP 280,000PHP 1,250,000
Paras Alter StationPHP 558,000PHP 1,200,000

15. Pet Services

Pet services have become more popular in the Philippines as more and more people are making pets a part of their families. Pet store franchises, such as the Pet Express, stock pet food, essentials, and accessories for sale. There are also specialized franchises, such as One Fab Pooch, which primarily offer pet grooming and hotel services. 

Name of BusinessFranchise FeeTotal Investment
One Fab PoochPHP 400,000PHP 1,500,000 – PHP 2,000,000
Pet ExpressPHP 50,000PHP 50,000

16. Cyber Cafes & Electronic Services

Electronics and the internet have become an integral part of every Filipino’s life. Computers and phones are used for work, entertainment, and communication. That’s why electronic service franchises, like Ink-Man Refilling Station, have become quite popular. Cybercafes, such as Mineski Infinity, have also grown as gaming has become more mainstream. 

Name of BusinessFranchise FeeTotal Investment
Mineski InfinityPHP 600,000PHP 4,500,000 – PHP 6,000,000
Ink All-You-CanPHP 400,000PHP 1,000,000 – PHP 2,900,000
InkritePHP 100,000 – PHP 200,000PHP 200,000 – PHp 400,000
Ink2GoPHP 150,000PHP 150,000 – PHP 300,000
Chong CafeAvailable upon inquiryAvailable upon inquiry

17. Financial Services

Financial service franchises help with the payment of bills as well as the transfer of money between sender and receiver. Bayad Center is a well-known brand where people can pay for their utility bills, phone charges, and government contributions. ML Express is both a pawnshop and money transfer franchise that helps connect Filipinos who want to send money to their relatives. 

Name of BusinessFranchise FeeTotal Investment
ExpressPayPHP 154,000 – PHP 308,000Available upon inquiry
Palawan Pawnshop/Palawan Epress Pera PadalaAvailable upon inquiryPHP 99,000
Bayad CenterPHP 350,000PHP 350,000
ML Kwarta Padala ExpressPHP 25,000PHP 99,000
Western UnionAvailable upon inquiryAvailable upon inquiry

18. Healthcare

Healthcare franchises are rare. Most of them are dialysis centers where patients with malfunctioning kidneys get treatment to remove the excess toxins in their bodies. Some brands include MedLine Dialysis Center and NephroMed Asia Dialysis

Name of BusinessFranchise FeeTotal Investment
NephroMedPHP 900,000PHP 15,000,000
MedLine Dialysis CenterPHP 1,120,000PHP 13,900,000 – PHP 15,000,000
Medicus Philippines, Inc.PHP 200,000PHP 1,000,000

19. Fitness Centers & Gyms

Fitness centers and gyms are all about providing Filipinos with access to spaces and equipment for their exercise needs. Anytime Fitness is a gym that has a variety of equipment for different people depending on their needs. There are also specialized fitness franchises such as Curves which only cater to women. 

Name of BusinessFranchise FeeTotal Investment
Gold’s GymPHP 2,500,000PHP 5,000,000 – PHP 30,000,000
Anytime FitnessPHP 2,700,000PHP 7,150,000 – PHP 15,625,000
TapoutPHP 2,552,825PHP 4,799,311 – PHP 22,771,199
Pound for Pound FitnessAvailable upon inquiryAvailable upon inquiry
Slimmers WorldAvailable upon inquiryAvailable upon inquiry

20. Health & Beauty

There are many kinds of health and beauty franchises available in the Philippines. There are retail outlets, such as HBC and Aficionado, which sell health and beauty products. There are spas, such as Thai Royal Spa and Nuat Thai, which provide relaxing massages to their clientele. There are also specialty beauty stores including The Brow Studio, which specializes in eyebrow beauty, and Flawless, a face and body clinic. 

Name of BusinessFranchise FeeTotal Investment
HBCPHP 500,000PHP 3,000,000
I Do NailsPHP 350,000PHP 2,100,000
Pink ParlourPHP 300,000PHP 1,700,000
The Brow StudioPHP 350,000PHP 300,00 – PHP 1,700,000
FlawlessPHP 1,344,000PHP 1,300,000
Barenaked Body Sugaring SalonPHP 800,000Available upon inquiry
AficionadoPHP 140,000PHP 465,000
Thai Royal SpaPHP 350,000Available upon inquiry
Asian MassagePHP 500,000 – PHP 1,000,000Available upon inquiry
Scents and BlendsAvailable upon inquiryAvailable upon inquiry
Caramel Bath & BodyAvailable upon inquiryAvailable upon inquiry
Powder Room Beauty LoungeAvailable upon inquiryAvailable upon inquiry

21. Retail Outlets

Retail outlets carry different kinds of products depending on the franchise. There are clothing stores (such as Bench), bookstores (such as National Book Store), furniture stores (such as San-Yang), and many others. If you can think of a retail product, then there’s probably a franchise available for it. 

Name of BusinessFranchise FeeTotal Investment
Miniso PHP 2,500,000 PHP 18,000,000 – PHP 20,000,000
Ilaw ATBP.PHP 580,000PHP 4,500,000
National BookstorePHP 450,000PHP 6,400,000
KamisetaPHP 3,500,000 – PHP 4,000,000PHP 4,000,000 – PHP 5,500,000
Hub Builder Center PHP 3,500,000PHP 3,500,000 – PHP 5,000,000
Islands SouvenirsPHP 150,000PHP 300,000 – PHP 2,000,000
Folded & HungPHP 600,000PHP 3,500,000
AnimalandPHP 200,000 – PHP 350,000PHP 500,000 – PHP 1,000,000
Edifier Electronics PHP 180,000PHP 600,000
BenchPHP 150,000PHP 500,000

22. Vending & Service Machines

Vending machines dispense products, such as food and beverage, based on the choice of the customer. PhilVending is one of the pioneer vending machine franchises in the country.

Meanwhile, service machines are digital devices, usually connected to the internet, that can be placed anywhere with access to electricity and phone lines. They are usually used as a means for people to pay their bills, buy phone credits, or purchase digital products. Western Union has its own service machine that you can franchise, but there are also other brands, such as TouchPay

Name of BusinessFranchise FeeTotal Investment
TouchPayAvailable upon inquiryPHP 350,000
Western UnionAvailable upon inquiryAvailable upon inquiry

Who Should Start a Franchise Business?

Not everyone should go into franchising. If you don’t understand the risks and responsibilities involved, you may just be wasting your time and money. Listed below are the kinds of people who might find success in franchising: 

  1. People who have some business experience. It’s true that a franchise has most of the business setup work done for you; however, that’s not a guarantee of success. In fact, you should be wary of any franchisor that guarantees the success of their franchise. A person with some business experience should be able to identify good franchises from the bad, as well as which parts of the business they need to focus on to succeed. 
  2. People who have time to manage their franchise. If you have other priorities, then you might be tempted to choose franchising over starting your own business. However, it’s important to be hands-on during the initial stages of the franchise. Once you’ve found your footing, you can delegate more tasks to your employees but even then, you still need to check things like product quality, customer feedback, and accounting regularly.
  3. People who can adapt to the rules of the franchise. As a franchisee, you would need to follow certain rules from the franchisor that are related to your operations. This may include the pricing, allowable marketing efforts, and supply sources. You run the risk of losing your franchise if you don’t follow their guidelines.

Related: How to Start a Franchise Business in the Philippines: A Definitive Guide

How To Choose a Franchise Business That’s the Perfect for You: 4 Steps

1. Write Down Your Goals, Limitations, and Strengths

franchise philippines 10

Before even considering franchising, you should do some self-examination. Here are the things you should consider: 

  • Your Objective. You need to define your short and long-term goals so you can choose a franchise that will meet your objective. For example, if your goal is to get profits fast, you shouldn’t choose a franchise with a long period for a return on investment. 
  • Your Budget. Your choice of a franchise will be limited by your financial capabilities. Remember, franchises may take months or years to turn profitable. So, don’t be surprised when your newly established business may need a steady flow of cash to keep itself going. You should have the money to sustain the business for 6 months at the minimum. That’s why you shouldn’t choose a franchise that costs more than what you can afford to lose. Not enough funds to start your franchise business? Read this: How To Get a Loan for Your Franchise Business
  • Your Knowledge & Skills. Franchising isn’t easy and that’s why you need every advantage you can get. Choosing a franchise that is in line with your knowledge and skills will help you turn it into a profitable business. For example, if you are good at door-to-door sales, then a water station business might be in line with your strengths.
  • Your Interests. It might take some time before a franchise turns profitable that’s why many people get burnt out and quit. To avoid this situation, you might want to choose a franchise concept that you are interested in and are willing to do for the long term. For example, if you enjoy making a difference in people’s lives, then an education franchise might be perfect for you. 

Make sure to write these things down before proceeding further so you can come back to them easily as you do your research.

2. Do Your Research on Your Franchise Options

franchise philippines 11

After your self-examination, you should have a better idea of your objectives and limitations. You can now begin the next step. 

a. Start doing your online research

There are many resources online, including our ultimate list above, that should give you ideas on which kinds of franchises to do more research on.

Of course, they won’t give you the whole picture of the business so make sure to dive a lot deeper. Check the franchisor’s website, follow their social media pages, and read online reviews. 

You won’t find the perfect franchise for you immediately. In fact, expect this step to take a lot of time.

b. Join franchising groups

You can only do so much research on your own, so you should join social media groups related to business and franchising. Choose groups that have actual real-life discussions about their experience with franchising in general and specific franchise brands. This should give you a better idea of what it means to succeed in your undertaking.

You can follow the Philippine Franchise Association which regularly hosts webinars for aspiring franchisees. If you want to learn about business in general, you can follow r/phinvest and StartupPH.

c. Join franchising event

Franchising events have not stopped even with the pandemic, they simply shifted to online venues. If you join events, such as Franchise Asia Philippines, you can learn first-hand from franchisors about the different kinds of franchises available in the Philippines. They will also have the latest information on franchising prices and packages.

If there are no events available, you can simply follow the event’s social media pages to stay updated on when they will have another one scheduled.

d. Create a shortlist of franchises that fit your goals, limitations, and strengths

Now that you have a better idea of what kinds of franchises are available to you, you should begin matching them to the criteria you’ve set at the start. Create a shortlist for the ones that meet your objective, are within your limitations, and allow you to showcase your strengths.

e. Visit the stores of your shortlisted franchises

Make a visit to one of the franchise’s stores as both a customer and a potential franchisee. This should give you an idea of what their operations look like and how a customer would feel about patronizing their store.

Rate your overall experience. Did they give you good service? Is this store something that you would be happy to own as a franchisee?

f. Talk to past and present franchisees

You can’t see everything that’s going on in the operations of a franchise just by visiting a store. So, it’s a good idea to talk to existing franchisees as well. You can do this by contacting them directly through the store, asking around on social media and forums, or joining groups for that specific franchise. Some key questions you can ask include: 

  • What has been your experience with the franchisor in terms of support? 
  • What are the most crucial parts of the operations? 
  • How long did it take or will it take for you to become profitable? 
  • What has been the most difficult part of growing the franchise? 
  • How much did you have to spend before the business started to pay for itself? 

Once you find out about their experience, you should have an idea of what it would take for the franchise to become profitable. If you don’t think it matches your criteria, then you should cross them off your list. 

g. Find out what customers think of the franchise

You won’t get the whole picture if you don’t talk to the customers, the actual users of the product or service. You can do this by doing direct interviews or by just checking testimonials online. You should find out: 

  • What customers liked and did not like about their experience.
  • If customers even remember the name of the franchise or their brand.  
  • If customers are frequent users of the product or service. Why or why not?

This is an important step because as a franchisee, there are a lot of things in the franchise that only the franchisor can control. For example, if a majority of customers did not like the taste of the product that is from the franchisor’s recipe, then you can’t change it as you please in your own store. So, franchises that have predominantly negative feedback for things that are out of your control should be crossed off your list. 

3. Reach Out to the Franchisor and Ask the Right Questions

franchise philippines 12

After doing the steps above, you should now have a narrower shortlist of franchises. The next step is to reach out to each of them. You can ask about their requirements for franchising, such as the price and documents required. 

But remember that you will be the one to decide if you want to make a franchising agreement with them. In order to make the correct choice, you need to start by asking the right questions. These include:

a. Is this business something that I can start on my own without the franchisor’s help? 

There is a reason people are willing to pay franchise fees. They are buying the strengths and expertise of the franchisor as part of the package. Does your franchisor provide the following: 

  • Brand Value – A brand is everything that people associate with the franchise, both good and bad. A good brand already has loyal customers and will make it easier for you to attract potential customers that will frequent your store. 
  • Unique Product or Service – A franchise that has a product or service that is easy to copy will have a lot more competitors. If they don’t have a strong brand already, then it might be difficult to attract customers without a unique product or service offering. 
  • Online Presence – A strong online presence is especially important these days as people prefer to do their shopping through apps and websites. 
  • Supplier Network – Suppliers are the lifeblood of any business as they are the source of your raw materials and equipment. A solid supplier network means you can get quality goods at an inexpensive price, making your profit margins higher. 
  • Manager & Staff Training – Excellent franchises train you, your manager, and staff to ensure that you can handle the operations without any problems. 
  • Promotions – Newer franchises may not have a strong brand yet, but a good franchisor will at least have promotions in place as they start building their brand. These can be in the form of ads, celebrity endorsements, or local advertising. 
  • Other Assistance – There may be other specialized requirements that your franchise may need, such as a unique store layout or a government registration. Good franchises should help make it easier for you to process these requirements. 

If the franchise does not provide any of these, then it might be better for you to cross it off your list.

b. Who are the people behind the franchise? 

Finding out if the team behind the franchise has a reputable background will also help you gauge if they will also conduct business with you with integrity. Are they registered with the government? What’s their track record? Do they have a history of stealing locations that were proposed by franchisees?

Do as much research on them as you can. You might be the one applying for a franchise, but there’s no reason you can’t scrutinize the franchisor too. It might be a good idea to check if they are also affiliated with one of the well-known franchising associations that you can join.

c. How does the franchisor earn? 

Different franchises have business models in place that determine how the franchisor earns. These include: 

  • Royalty Fees – this is the commission that the franchisor earns as part of your sales as a franchisee. 
  • Franchising Fees – this is the initial amount you pay to become a franchisee. 
  • Supplier of goods/materials – This is an alternative to royalty fees. Here, the franchisee buys the goods or supplies from the franchisor. 
  • Recruitment – Avoid this business model. It’s similar to a multi-level marketing (MLM) scheme, where recruitment is the main source of income, and the franchise can suffer as a result. 

You should choose a franchisor with a business model that is only successful when the franchisee is successful as well. They earn when you earn, so they have an incentive to support you.

d. Who decides on the location? 

Franchisors might already have a list of locations available for you to choose from. But most of the time, it is up to the franchisee where they want to set up their store. You should research the price of rent, foot traffic, competition, and many other factors before deciding.

Location is one of the most important contributors to the success of a franchise. So, choose wisely. 

Related: How to Select a Location for Your Franchise Business

e. Do the math. What does success look like in sales? 

Your franchisor should be able to provide you with the data on the fixed and variable costs of the franchise. You shouldn’t work with a franchisor that can’t provide you with these data. Then, you supplement that information with what you’ve found in your research.

It might be tempting to rely solely on what the franchisor provides you, but you need to do the math yourself. Franchisors in bad faith may attempt to mislead you.

  • How much do you need to earn per day to reach breakeven? 

With your expense data on hand, you need to forecast how many units you need to sell daily to reach breakeven. This is the sales level where your business itself can pay for the expenses.

Breakeven Sales in Units = Fixed Costs ÷ (Price per unit – Variable Cost per unit)

For example, you have a laundry business that has a fixed cost of PHP 30,000 per month (inclusive of rent, etc). You earn PHP 100 for every one unit of the sale in the business that you do, in this case, every 5kg of laundry. But you also have a variable cost of PHP 40 for every 5kg of laundry.

So, the computation is as follows:

Monthly Breakeven Sales in Units = 30,000 ÷ (100 – 40)

Which leads to an answer of 500 units per month as your breakeven. If you are open for 30 days a month, that leads to 16.7 – rounded up to 17 units per day. Do you think that is something you can achieve in the location you have in mind?

  • Will it be profitable? 

Of course, you are not doing business for the sake of reaching breakeven. Your goal is to make a profit. Let’s say you want to earn PHP 30,000 per month. To compute the sales needed to reach this, use the formula below:

Target Sales in Units = (Target Profit + Fixed Cost) ÷ (Price per unit – Variable Cost per unit)

Using the same example from earlier, this would become:

Monthly Target Sales in Units = (30,000 + 30,000) ÷ (100 – 40)

This leads to an answer of 1000 units per month to earn PHP 30,000 monthly. If you are open for 30 days a month, it’s 34 units per day. Is this sales target still something that you can reach?

Using the answers from your computation above, you can also forecast how long it will take for you to get a return on your investment. If you are having difficulties doing the math, it might be a good idea to consult a professional accountant. Just don’t invest in a franchise without doing the numbers first.

f. What decisions from the franchisor will have a positive or negative effect on your business? 

As a franchisee, not every aspect of your business will be under your control. The franchisor might have the right to dictate your price, your products and services, and your operating procedures, among others.

Picture this, you opened up a franchise in a location that’s perfect to serve people in the lower-income brackets. It went well and you reached your breakeven point easily. However, what if your franchisor suddenly decided to upscale its brand and raise prices? It may have a severe negative effect on your store due to the market that you serve.

Make sure to consider these vulnerabilities when choosing a franchisor.

g. Can my franchising agreement be canceled or expire? 

Make sure to check the terms of franchise cancellation before signing any agreements. Ideally, you should consult with a lawyer about any terms that are grossly unfavorable to you. This is especially true if there are parts of the contract that you do not understand.

Also, you should check if your franchising agreement has a period of validity. You don’t want to pay an expensive franchise fee just to find out it already expires in a year or two. 

4. Decide on the perfect franchise for you

So, now that you’ve outlined your objectives, done your research, and asked the right questions, it’s time to finally choose a franchise that’s perfect for you.

If you have any remaining doubts about the franchise you’re about to choose, then it might be a good idea to take a bit more time to research. Rushing may only lead to regret.

Once you’ve chosen one, complete the requirements from the franchisor, as well as any government requirements, and then you’ll finally be ready to open your franchise store. 

Tips and Warnings

  • Don’t expect overnight success. Just like most businesses – franchising is a marathon, not a sprint. You have to accept that it might take several months or years to get your money back and start bringing in profits. You need to consistently promote and deliver quality services to achieve this. 
  • Prepare to be very hands-on at the beginning. If you have a day job that you can’t leave, then franchising may not be for you. It’s not really advisable for people to leave their day jobs until their franchise business can become their livelihood. You can hire a manager but paying for their salary might not make sense if your franchise is on a smaller scale. 
  • Invest time and money into training your employees. While you shouldn’t leave everything to your employees at the start, you should be preparing them to be able to do things on their own. Your goal is to let them smoothly manage business operations even without your supervision. This way, you can focus on important tasks, such as accounting and customer feedback. 
  • Franchising costs more than you think. Many people go into franchising with the misconception that it will only cost them the franchising and initial setup fees. Most people forget that in order for a franchise to succeed, you may need to cover the operation and marketing costs until your franchise is self-sustaining. 
  • Most franchise owners never feel like doing inventory due to how time-consuming it is. However, they don’t know that many franchises fail because of improper inventory management. You need to become very active in preventing theft or spoilage or it will eat into your profits. 
  • Don’t expect your franchisor’s full support in everything, especially in local marketing. Many would-be franchisees fall into the trap of expecting their franchisor to do everything for them. However, most franchisors’ support stops at the initial setup and training. You need to do the work yourself – especially in promoting your business in your local area. 
  • Watch out for franchising scams. When it’s too good to be true, it’s probably a scam. Common red flags in franchise scams include franchisors being very cheap, guaranteeing success, and refusing to show legal documents. Make sure to do your research before paying for any franchise “opportunity”. 
  • Be careful about investing in a franchise that is based on fads. It’s very easy to give in to the feeling of missing out, especially if you know people who are earning a lot with their fad-based franchises. However, those are not for beginners. You have to know when to get in, and when to get out. Instead, look into franchises that will stand the test of time. 

Frequently Asked Questions

1. Does franchising a business guarantee success?

No. If a franchisor is guaranteeing the success of your franchise, then it’s probably a scam. The success of a franchise, just like any other business, hinges on many different factors that franchisors typically don’t get involved in. These include choosing the right location, managing operations and inventory, building relationships with clients, and supervising your employees. All of these are your responsibilities as the franchisee.

2. Can I get my money back from the franchisor if the franchise fails?

Not everything you paid for when establishing your franchise is refundable. In general, the majority of your capital, which went to franchise fees and the cost of setting up the franchise, will be gone. Some franchisors may pay the money back for the return of certain items, like signages and inventory, but only for a minimal amount.

3. My franchise failed. What should I do next?

Having a failed franchise is a disheartening matter. Take a breather first because you need to do a bit more work before you call it quits. You have a few options available to you: 

  • Ask your franchisor if they can allow you to sell your franchise to a 3rd party. If they allow it, you can get a large portion of your capital back through the sale of the franchise rights and equipment. 
  • If the failed franchise was due to the franchisor’s fault, you may be able to turn it around by making it into your own business without franchisor involvement. You should still have the equipment, client database, and know-how left from running the franchise. You’ll need to start by establishing your own brand, but if you can pull your old clients into your new business, then you may just have what it takes for success. 
  • Your final option is to liquidate your assets. If you want to maximize the capital you can gain back, make sure that everything you are selling is in working condition. You may not get a substantial amount of your capital back, but it’s still better than nothing.

Related: How to Close a Business in the Philippines: An Ultimate Guide

4. I don’t want to continue my franchise anymore. Can I transfer my franchise to another person?

You would have to talk to your franchisor because this would be based on their terms. However, in the Philippines, the franchising industry is mostly unregulated9. This means that most franchise agreements favor the franchisor. Most franchisors do not allow the sale of franchise rights to a third party; after all, they can earn a franchise fee from the person willing to take over your area.

5. Is it better to invest in a franchise or a passive income investment?

This depends on the person. If you don’t have the time to manage your franchise business, then a passive income investment might be better for you. However, please note that just like franchising, passive income investments, like stocks and bonds, also require you to do your research in order for it to be lucrative.

6. I have a limited budget of less than 50K. What are some of the cheapest franchise business opportunities you recommend?

If you have a limited budget of less than 50K, then any franchise with high investment costs–such as those related to the franchising fee, construction, equipment, or rent–is not recommended for you. You’ll find most franchises will be out of your reach except for vending and service machines, as well as unknown food cart brands. Instead, you might want to look at starting your own business instead. There are businesses that you can run with a starting capital of PHP 4,000 and below, 20,000 and below, and 50,000 and above.

References

  1. Desiderio, L. (2021). Over 70% of franchise businesses hit hard by COVID-19, says PFA. Retrieved 20 December 2021, from https://www.philstar.com/business/2021/06/24/2107604/over-70-franchise-businesses-hit-hard-covid-19-says-pfa
  2. PFA holds virtual Franchise Expo as industry rises from Covid effects. (2021). Retrieved 20 December 2021, from https://mb.com.ph/2021/09/08/pfa-holds-virtual-franchise-expo-as-industry-rises-from-covid-effects/
  3. Caraballo, M. (2020). Franchise group: Recovery in 2021, ‘golden age’ by 2025. Retrieved 20 December 2021, from https://www.manilatimes.net/2020/10/04/business/sunday-business/franchise-group-recovery-in-2021-golden-age-by-2025/775793
  4. Santiago, A. (2021). Updates on Booming Business Sectors in the Philippines’ Lockdown. Retrieved 20 December 2021, from https://ycpsolidiance.com/article/updates-on-booming-business-sectors-in-the-philippines-lockdownnbsp
  5. Clean water for life and livelihoods amid pandemic. (2020). Retrieved 21 December 2021, from https://www.ilo.org/asia/media-centre/articles/WCMS_754439/lang–en/index.htm
  6. Dumlao-Abadilla, D. (2020). Sectors that not only survived, but thrived during the pandemic. Retrieved 21 December 2021, from https://business.inquirer.net/313404/sectors-that-not-only-survived-but-thrived-during-the-pandemic
  7. Automotive industry in the Philippines – statistics & facts. (2021). Retrieved 21 December 2021, from https://www.statista.com/topics/6433/automotive-industry-in-the-philippines/
  8. Arcalas, J. (2021). Food service industry sales seen falling 13%. Retrieved 21 December 2021, from https://businessmirror.com.ph/2021/10/05/food-service-industry-sales-seen-falling-13/
  9. An Unregulated Franchising Environment. (2019). Retrieved 21 December 2021, from https://ndvlaw.com/an-unregulated-franchising-environment-updated-october-2019/

Rod Michael Perez

Rod Michael Perez is a freelance writer with over 7 years of experience in writing long-form articles, ad copy, and SEO content for local and foreign clients. He is also an aspiring startup founder and believes that the Philippines could be the next hub for startup culture. He takes care of his dog, a poodle-Shih Tzu hybrid, in his spare time.

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