By Reicelene Joy N. Ignacio
THE ASSOCIATION OF Filipino Franchisers, Inc (AFFI) warned interested franchisees to beware of small capital franchising schemes which could mean a lack of sustainability of the business.
“Marami ngayon, fly-by-night na nagbebenta ng murang franchise. Ito ’yung P25,000 na buy one-take one, pero kung titignan mo ’yung mga cart nila, maliliit lang. ’Yung mga materyales, pang short term lang. Nakakatakot iyon kasi walang backup iyon na long-term plan ’tsaka at the same time, ’yung mga nagtatayo no’n, ang background talaga nila, hindi franchising,” Jorge Noel Y. Wieneke III , AFFI vice-president for membership, Tokyo Tempura owner and Potato Corner founder, said in a press briefing on Jan. 17.
(There are many fly-by-night franchisors right now selling an inexpensive franchise. These are the franchisors selling a franchise at P25,000 each, buy one-take one, but if you’re going to take a look at their cart, it is small. Their materials are only for short term. It is something to be afraid of because there is no back-up long-term plan and at the same time, those who set up these businesses have no franchising background.)
While these businesses may not be considered illegal, they may not be able to thrive, according to Mr. Wieneke. For him, it is necessary to look at the popularity of the brand which is based on its visibility in different places.
“Walang nagsasabing illegal iyon. Ang tanong, paano nila masu-sustain iyon. (Nobody’s saying it is illegal, but the question is, how is it going to be sustained),” Mr. Wieneke said.
“When you buy a franchise, you are buying a franchise because of the brand — — strong brand. ’Pag strong brand, visible s’ya sa lahat ng mga tindahan, sa mga malls, etcetera (When you say strong brand, it is visible in all stores, in malls, etcetera),” he said
“That means seryoso sila, may sustainability ’yung konsepto (That means these franchisors are serious. Their concepts are sustainable),” he added.
AFFI Chairman Enrique Pablo O. Caeg, reminded entrepreneurs that franchising is only for obedient followers.
“Para roon sa gusto mag-sarili, franchising is not for you. That would be a disadvantage for you. Gusto mo [mag-franchise] pero ayaw mo sumunod. Hindi puwede iyon (To those who want to follow their own ideas, franchising is not for you. That would be a disadvantage for you. You want to franchise yet you don’t want to follow),” Mr. Caeg said.
Mr. Caeg, however, said that the benefits of franchising include not having a burden anymore for entrepreneurs to think what they should sell, or where to sell, because the products and the business format are already there.
“Hindi ka na maghihirap mag-isip. Hindi ka na maghihirap maghanap ng lokasyon. Hindi ka na mag-iisip kung paano ioperate yung hanapbuhay (You won’t have a hard time thinking. You won’t have a hard time looking for a location. You won’t have to think anymore how to operate the business),” Mr. Caeg said.
Mr. Wieneke shared the same sentiments, saying: “You have to follow the rules and regulations of the franchisors. Kung medyo matigas ulo mo, magtayo ka ng sarili mong negosyo. (If you are hard-headed, set up your own business). You have to follow the manual and the operational manual of the franchisor.”
He also has an advice for existing and aspiring to be franchisors.
“Be relevant. Innovate and be more active in product development,” he said.
Mr. Wieneke said that is the franchisor’s responsibility to ensure continuous supply of food stocks to their franchisees, even when there is unforeseen events that could hinder delivery, such as port congestion.
“Obligasyon namin is continuous ang supply sa kanila (It is our obligation to have continuous supply to them),” Mr. Wieneke said.
AFFI currently has 221 members selling food and services to consumers. In 2018, these business have generated P50.47 billion sales and is poised to grow by 25% to 30% in 2019.
