Filipinos Putting More Money In Franchises

Inquirer.net:

Just a little over 10 years ago, franchising was virtually unheard of in the Philippines.

For the few who were familiar with it, they thought it was a business expansion strategy limited to the big foreign food companies, such as McDonald’s, Shakey’s and Pizza Hut.

Franchising in the Philippines has definitely gone a long way since then, and the industry is showing no signs of slowing down, just of speeding up.

The latest data from the Philippine Franchising Association (PFA), the biggest and oldest franchising group in the Philippines, show that there are close to 900 franchises operating in the country from just 50 in 1995 and 64% of these are homegrown. These are largely in food, service and retail.

Franchising has thus become a major force in the economy, accounting for an estimated 15% of the annual retail sales of roughly $5 billion.