What do Binalot, King of Balls, Fiorgelato and Figaro have in common? These brands are all successful homegrown franchises. The four franchises are also members of the Association of Filipino Franchisers Inc.
Studies show that 95 percent of franchise businesses succeed.
“This is because a system is already in place. Studies also show that 85 percent of new businesses fail in the first year,� said Rommel Juan, the association’s public relations officer and owner of Binalot.
Franchising was previously practiced by bringing in foreign brands to the Philippines. But the number of homegrown franchises have grown to over 200 since the 1970s.
“This has helped local businesses expand to the provinces. Franchisers have also opened the field to more entrepreneurs,� said Juan.
An entrepreneur can now put up his own business using an established brand name for P200,000 or less. A Binalot franchise is available for P150,000 while a King of Balls franchise is sold for P45,000.
“Franchising is all about building a brand and making sure it is successful,� said Paulo Tibig, president of Vintel Logistics Inc., a marketing services company and member of the 10-year-old AFFI.
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