Franchises in the Philippines: Which is the best investment?

Franchising is an opportunity for aspiring investors and entrepreneurs to own their own business, while being backed and supported by a successful business enterprise.

Following the economic downturn caused by the global COVID 19 pandemic, franchising offers the best, low risk opportunity for entrepreneurs in the Philippines, where the franchising industry contributes 7% to the country's overall GDP.

Despite the effect on the economy the pandemic has had, franchising offers a very low risk business venture for Filipinos looking for growth opportunities and returns above the global average.  

It is well known that owning your own business can add to financial fulfillment and even with less savings than you might think, it's possible to own your own business through franchising in the Philippines.

Purchasing a franchise guarantees you an already proven business concept, meaning the risks of your investment are much lower. This also means you skip the nitty gritty process of setting up your own business from scratch and save time and money doing so.

Working up through the corporate ladder aiming for financial freedom also takes many years, whereas owning your own franchise is a much better investment and will secure you your financial freedom faster. 

Franchising under 100k - What can you get in the Philippines?

Here are some options when it comes to franchising for under 100K in the Philippines. 

1. Star Frappe - Franchise Fee: P99,000

   
   

   This cost is for setting up a Star Frappe coffee franchise Kiosk. Everyone loves coffee but not everyone can afford their favorite latte from one of the big well known coffee chains. Star Frappe offers coffee at an affordable price to coffee lovers all over the Philippines. This option is a great way to start an affordable business while making a profit at the same time. 

   
   
   

2. Water Refilling Station - Aquabest - Franchise Fee: P100,000

   The leading water refilling franchise in the Philippines uses the highest water treatment system called S.O.U.L. Technology to ensure providing the cleanest and safest drinking water to its customers. Aquabest franchise is a great franchising option for starting a business given everybody needs clean water including all homes and offices throughout the country. 

Franchising under 400k - other franchises you can buy in the Philippines?

1. Generika Drugstore - Franchise Package: Starts at P350,000

   If you are looking to get into the Pharmaceutical industry then this is a good option for you. This franchise drugstore sells a wide range of products from Generic medicines, branded medicines and selected consumer goods. Entering a drugstore franchise can be a lucrative opportunity in the Philippines. This is because just like daily necessities such as rice and mobile phones, medicines — maintenance medications, food supplements or vitamins — have become part of daily expenses.

   
   
   

2. Rice in a Box - Franchise Package: Starts at P300,000

   The company started back in the year 2000 in Manila’s Chinatown. It specializes in authentic Chinese dishes served in a box to go. This food cart business does not only make the customers happy but the entrepreneurs as well. Not only is the food they serve affordable, but the Franchise is also affordable! A good option if you are looking to enter the fast food franchising industry.

Franchising under 600k - What is the most profitable franchise you can buy in the Philippines?

If you are looking for a more profitable franchise to invest in the Philippines, here we give you the best option:

1. Jeff 

With Jeff's business model, they first revolutionized the laundry sector with Mr Jeff,  offering pick up and drop laundry services through their app, allowing users to enjoy hours of time that would have been spent doing mundane chores like washing or ironing. And now that Jeff has been well established in the laundry space, they continue to expand to other services like hair & beauty [Beauty Jeff], personal fitness [Fit Jeff],  spas [Relax Jeff], etc., using the same franchise model that offers both the convenience of an app as well as the reliability of a neighborhood store to their users. This is also a very profitable franchise option for investors in the Philippine and the use of technology is a key competitive advantage.  

Also you can watch this video of an interview in the Philippines with our CMO:

Top Franchising you can buy in the Philippines

Here are some of the more expensive options to buy

1. McDonald’s - Franchise Fee: Php 32 - 45 million 

McDonalds is one of the most important worldwide fast-food restaurants and also one of the most expensive. The initial capital investment is Php32-45 million. Nowadays, McDonald´s have more than 300,000 restaurants in more than 100 countries (80% of these are franchises). The owner of a McDonald`s franchise will also have to manage a team of 50 employees per store. 

2. 7-11

The 7‑Eleven brand is an iconic global brand — instantly recognized locally and also internationally. The brand is known to customers nationwide for their products, quality, service, cleanliness and value. And they are also the benchmark for retail innovation and technology in the convenience store industry.

Reasons for owning a franchise in the Philippines

• The franchising Industry is actually growing at an incredible rate with expectations of 25% growth this year in 2020. (Latest data from the Philippine Franchising Association (PFA)

• The Philippine market also offers an innately large consumer base that is very attractive for franchise investors

• Its strategic location makes the country an appealing option for investors looking to launch in the Asia Pacific region 

• A franchise business that is growing like Jeff franchise for example offers huge opportunities such as outlet expansion 

• Business knowledge and training from the experts

• Achieving funding is not as difficult as getting funding to start your own business from scratch 

• Over the years, franchising in the Philippines has evolved, giving franchisees the freedom to choose the kind of business they want to try

Why invest in 2020 in a franchise in the Philippines 

With the majority of the available franchises having proven business models, the success rate of franchising in the Philippines has reached an incredible height of 90%. This percentage is based on PFA’s latest statistical data, citing that this is better than the retailing business with only a 25% success rate.

The Philippines is dubbed as the franchising hub in Asia, there are many benefits associated with owning a franchise there that we have spoken of. It is no wonder that young professionals and aspiring entrepreneurs alike are so drawn into the concepts of franchising and in particular in the Philippines.