Franchising Industry Wants Self-Regulation

Manila Standard:

The Philippine Franchising Association said government intervention or regulation of the franchising business could only stunt the growth of the industry. Association chairman emeritus Samie Lim said the association instead preferred self-regulation.

Lim said there had been rampant reports of franchisers victimizing prospective entrepreneurs but regulating the franchising business could hamper the industry’s growth. He said the Philippines could go the way of Singapore, where government regulation overcrowded the island-nation with lawyers bent on protecting business concepts rather than executives willing to share their concepts to others through franchising. In an overly regulated environment, other entities might make use of other schemes or terms just to skirt around the regulations.

The 200-member group has come out with its own code of ethics on the conduct of business. Lim said the public should be educated properly on which franchising venture was bogus or not.

Robert Justis, who was recognized as the father of American franchising, said the government should regulate the fast-growing local franchising sector.