What are the benefits that made franchise business popular and in-demand in the Philippine market? Franchise businesses are considered today as one of the most popular business in the Philippines, and that many Filipinos today have started to franchise a business to improve their lives and to secure their future from poverty.
Advantage of Franchising According to many business experts, the main benefit that made franchising a popular practice not only in the Philippines but all over the world is that it allowed people to make use of another firm’s successful business model.
As practiced in retailing, franchising offers franchisees the advantage of starting up quickly based on a proven trademark, and the tooling and infrastructure as opposed to developing them. Although advantageous in terms of a profitable business, the only disadvantage of franchise businesses in the past was its expensiveness.
Disadvantages of Franchising Franchising, according to many experts, had been practiced in the Philippines for many years, yet it was only recently in which these types of businesses had gained a lot of popularity in the Philippine market. The reason why franchising was not as popular as it is today is because most franchise business Philippines were large businesses like fast-food restaurants and convenient stores.
Because of that, the only ones that were able to franchise a business were wealthy Filipinos as well as companies, corporations, and through joint-ventures. Although not popular, it was however an important business process which allowed international brands and services to penetrate the Philippine market. Popular examples include McDonald’s, Wendy’s, Burger King, 7eleven, Mini Stop, and many more.
New Franchise Businesses in the Philippines The reason why franchise businesses had gained a lot of popularity in the Philippine market is because of a number of new franchise business concepts which gave other Filipinos the opportunity to start their own business.
Food-Cart Franchise Businesses Food cart businesses are some of the most popular Franchising business Philippines today. The reason why these kinds of businesses became popular is because of its affordability and its simplicity.
Compared to larger franchise businesses, food cart businesses are far more affordable, allowing more Filipinos to have the same opportunity that others have for these types of businesses. In addition to that, these small types of franchise businesses are far simpler to maintain due to the fact that its relatively small size would only require one or two personnel in a small area in a high foot-traffic location, like in malls and in shopping centers.