What is franchise business?
These days Franchise and Franchise Business are very popular words, they are all over the place; which is great. But before going crazy, in order to do things the right way, people must understand what a franchise business is, and after, analyze the options and make a decision.
According to the International Franchise Association, "franchising is a method for expanding a business and distributing goods and services through a licensing relationship".
Not everyone has the willingness to start a business from the ground up. Sometimes, buying a franchise is the sensible choice and the first step towards becoming an entrepreneur.
Too fancy? In other words, what this means is that the owner of a company (the franchisor) grants a license to a third-party person (or company) - which would be the franchisee - to conduct his/her business using the franchisor's products or services as well as the operating system, the brand, the business plan, etc.
The most common pro of buying a franchise is that the number, planing and what people would call ugly thinking part is done, everything is given; the franchisee would only have to worry about making it work (sounds easy but it is also a great challenge). It sounds all pretty but it is important to know that a franchise business also carries some risks, such as not being the creative person, the franchisee has to follow the instructions of the franchisor, not the other way around.
Why invest in the Philippines?
In the last few years The Philippines has become the 43rd largest economy in the world, making it a popular destination for the international investors. In fact, Goldman Sachs (leading global investment banking, securities and investment management firm) stated that it was one of its Next Eleven economies, projecting that it will become the 14th largest economy in the world by 2050. Below there are the top 3 reasons for considering The Philippines when doing business:
- Business-Friendly Economy: Open economy. Allows 100% foreign ownership in almost all sectors.
- Strategic Business Location: The Philippines is located right in the heart of Asia - world's fastest growing region.
- Leadership in Outsourcing: Leader in business process outsourcing, which is one of the fastest growing industries in the world.
What are the best franchise to invest in the Philippines?
Here you have the most profitable franchise to own in the Filippino's market:
1. HEALTHY-MEAL KIT
People want to be healthy, but it is so difficult! Buying organic products but don't having the time to cook, don't know the exact measures, barely have time to workout. All the intentions are there but the time makes it impossible!
So what best than solving this problem? The new trend is to be healthy, people are becoming more and more conscious on the importance of health, which creates a huge demand that is rapidly increasing.
Just like "Fruitas" Franchise that provide fresh and affordable products to the middle class in the Philippines region.
2. PERSONAL SERVICES
These days being practical is the key. It is what makes service-based franchise business models very profitable. Filipinos' are very likely to acquire these kind of services because people are getting busier with work and social activities, they have less and less time to spend for washing, drying and ironing; not forgetting that the continuos growing demand is something that needs to be focused on.
In the last year one of the most successful franchise in this kind of services in The philippines Mr Jeff Laundry Franchise Company.
Videos are better than words.
Mr Jeff is a three year-old technological company that solves people's day to day problems such as doing laundry. It does this by implementing constant progress and improvement in all of its processes due to its commitment to continuously innovate. It is one of the companies with most success in the laundry sector having a new and innovative business model.
3. FOOD KIOSK
Food kiosks are ideal for people who are just starting to get into the business world, and the main reason for this is that it is affordable. Many Filipinos are fund of eating at food kiosks because they are not very expensive and they're quick. Fast, cheap, well-tasting food. The clue here is to find a strategic location where many people walk through (such as subways and train stations).
4. BEAUTY SALON
As laundry service, a beauty salon is a never-ending service, everyone needs a haircut once in a while. Some people like to go to fancy expensive salons and others prefer their hair to be done in smaller cheaper but trustworthy salons. What better that buying a franchisee of a service that will never end, a service that will always have customers and its not that expensive to maintain? Also, because of so many stress the world is having, people need a place where they can relax and have a "me time" for a while.
5. COFFEE SHOP
Not everyone drinks coffee that's for sure, but when thinking about a coffee shop, people also think about the environment that it offers (plus it sells more things than coffee). For example Starbucks, people don't go there because of the coffee, when thinking about Starbucks the first thing that comes to mind is the environment, the sofas, the low-beat music and so on. Coffee shops are also made as an alternative for people to go to work, read, talk, etc. If there is good coffee of course it is very well appreciated, but if the coffee is not the best, people will still go because of the nice environment, it goes from a working place to a place where people meet their friends and talk.
“Without hard work, nothing grows but weeds.” - Gordon Hinkley
Why Mr Jeff in The Philippines?