Franchise Campaign Presentations by Raffy G Canare

FRANCHISING…An Option to become an Entrepreneur.

By:

Association of Filipino Franchisers, Inc. (AFFI)

www.affi.com.ph

www.affiphilippines.mobiPromoting World- Class Filipino Entrepreneurs

Raffy G. Canare, TMNational Executive Director

Association of Filipino Franchisers, Inc. (AFFI)

www.affi.com.ph

www.affiphilippines.mobiPromoting World- Class Filipino Entrepreneurs

A HAFFI FAMILYThe AFFI NATIONAL BOARD of DIRECTORS

www.affi.com.ph

Eat Bulaga NEW AFFI MEMBER

www.affi.com.ph

The AFFI Secretariat Office takes charge of managing the policies and projects of the Association of Filipino Franchisers Inc.

Association of Filipino Franchisers, Inc.

The Association of the Filipino Franchisers Inc. (AFFI) is the Philippines’ prime trade organization committed to promoting responsible micro small medium enterprise businesses through franchising. It is consist of Filipino corporate presidents, CEOs, and prominent businessmen who recognize the competitive potential of the local franchising industry in the global market.

www.affi.com.ph(02) 654.03.45 | +639062456045

Association of Filipino Franchisers, Inc.

Serves as the governing body that safeguards the interest of its members and innovates ways to further its advocacies. 

www.affi.com.ph(02) 654.03.45 | +639062456045

Exploratory Questions

Do you want to go into NeGOsyo?

Do you have FUND?

How much are you willing to invest?

Where to get FUND?

Seize ‘d Day!

Promoting World-Class Filipino Entrepreneurs!

Raffy G. Canare, Executive Director

www.affi.com.ph(02) 654.03.45 | +639062456045

www.affi.com.ph(02) 654.03.45 | +639062456045

www.affi.com.ph(02) 654.03.45 | +639062456045

www.affi.com.ph(02) 654.03.45 | +639062456045

www.affi.com.ph(02) 654.03.45 | +639062456045

AFFI Center for Franchising

What is Franchising?

- Is a business practice that an individual can use; a Business System that is proven successful.

www.affi.com.ph(02) 654.03.45 | +639062456045

www.affi.com.ph(02) 654.03.45 | +639062456045

“A franchise operation is a contractual relationship between the franchisor and franchisee in which the franchisor offers or is obliged to maintain a continuing interest in the business of the franchisee in such areas as know-how and training; wherein the franchisee operates under a common trade name, format and/or procedure owned or controlled by the franchisor, and in which the franchisee has or will make a substantial capital investment in his business from his own resources.”

- Definition by International Franchise Association

Why Franchise?- According to study, 90% Success Rate- Proven Brands- With Established Business System Operation

- Much Better than Traditional Business/ Establishment.

www.affi.com.ph(02) 654.03.45 | +639062456045

Basic Terminologies:Franchiser: The person who developed and owned the Business System.

Franchisee: The person who wishes to adapt, pay the system under a registered trade mark and brand following all the policies and conditions set by the Franchiser stated in the Franchise Manual.

www.affi.com.ph(02) 654.03.45 | +639062456045

Basic Terminologies:

Franchise Manual: The Business Operations Bible

Franchise Contract: The Document that states the conditions and agreement both accepted by the Franchiser and Franchisee.

www.affi.com.ph(02) 654.03.45 | +639062456045

3 Kinds of Franchising

1. Product Distribution2. Business Format Franchising3. Management Franchise

www.affi.com.ph(02) 654.03.45 | +639062456045

1. Product Distribution

i. Supplier- Dealer Relationshipsii. Sells the Franchiser’s Products

www.affi.com.ph(02) 654.03.45 | +639062456045

1. Product DistributionEx:

www.affi.com.ph(02) 654.03.45 | +639062456045

2. Business Format FranchiseIntegration of FULL Business Operations and System that includes but are not limited to:

Operations Business Development

Marketing Sales RetailingLogistics Supply Chain

Managementwww.affi.com.ph

(02) 654.03.45 | +639062456045

2. Business Format FranchiseEx:

www.affi.com.ph(02) 654.03.45 | +639062456045

3. Management FranchiseThe FRANCHISEE provides management service and expertise using the Trademark and Business Name of the Franchiser.

www.affi.com.ph(02) 654.03.45 | +639062456045

3. Management FranchiseEx:

www.affi.com.ph(02) 654.03.45 | +639062456045

Franchise Investment Price Range:

Typical Food Cart: P 20k to P 300K

Kiosk: P 100K to P 700K

Services: P 300K to P 10M+

Investment Inclusions:

Franchise FeeRoyalty FeeInitial InventoryRenovationsMiscellaneous, Legals Revolving FundRentals and Salaries

TRADITIONAL FRANCHISE

BRANDING

You have to create and start your own

brand.

Established and known in major cities

Comparative Illustration

VS

www.affi.com.ph(02) 654.03.45 | +639062456045

TRADITIONAL FRANCHISE

Management

Hand’s On in every detail.

You will be supervised and assist by the Franchisee.

Comparative Illustration

VS

www.affi.com.ph(02) 654.03.45 | +639062456045

TRADITIONAL FRANCHISE

Operation / System

Start from Scratch. Design your own

You just need to follow the Franchise Manual.

Comparative Illustration

VS

www.affi.com.ph(02) 654.03.45 | +639062456045

TRADITIONAL FRANCHISE

Supplies, Machines and Inventory

Research your own supplies. Try and Test.

Franchiser will provide everything. Just pay them.Not allowed to purchase in

any supplier. Quality Products will be provided

Comparative Illustration

VS

www.affi.com.ph(02) 654.03.45 | +639062456045

TRADITIONAL FRANCHISE

Permits, Legal and Miscellaneous

Work it on your own. Full Support of the Franchiser.

Comparative Illustration

VS

www.affi.com.ph(02) 654.03.45 | +639062456045

TRADITIONAL FRANCHISE

Financing

For start up there is less Funding Opportunity from Financing Firms since the

business couldn’t show any previous income statement

The Franchiser can offer in- house financing or can

recommend and guarantee in any Funding Firm.

Comparative Illustration

VS

www.affi.com.ph(02) 654.03.45 | +639062456045

TRADITIONAL FRANCHISE

Marketing

You have to fund your own marketing expenses. Limited marketing and promotional

exposure

Depends on the Franchise Brand. Known brands has a great mileage of marketing

exposure.

Comparative Illustration

VS

www.affi.com.ph(02) 654.03.45 | +639062456045

TRADITIONAL FRANCHISE

Return of Investments

Not guaranteed

Not guaranteed, but one can base in the history of other Franchisee or may refer to

the feasibility study made by the Franchiser.

Comparative Illustration

VS

www.affi.com.ph(02) 654.03.45 | +639062456045

TRADITIONAL FRANCHISE

Support and Assistance

You can not ask anyone to help you since the business is

solely yours….100% Supported

Comparative Illustration

VS

www.affi.com.ph(02) 654.03.45 | +639062456045

TRADITIONAL FRANCHISE

Innovation

It takes time and investments to innovate your products.

Every Franchiser has a Research and Development

Department who handles the development of products and

services.

Comparative Illustration

VS

www.affi.com.ph(02) 654.03.45 | +639062456045

TRADITIONAL FRANCHISE

Location

Get your own place

You can recommend or the Franchiser can provide. Most

of the site provided by Franchiser have passed

through a study.

Comparative Illustration

VS

www.affi.com.ph(02) 654.03.45 | +639062456045

TRADITIONAL FRANCHISE

Business Retirement

When you close… Its closed. There is a less chance for you to

resell your business to any investor since the primary reason you closed the business is due to

unprofitability.

The Franchiser can resell the site and business to a new

interested franchisee.

Comparative Illustration

VS

www.affi.com.ph(02) 654.03.45 | +639062456045

Are you ready to Franchise?

The JOY of OBEDIENCE is the SECRET of Franchising

www.affi.com.ph(02) 654.03.45 | +639062456045

Due Diligence

Self Examination

What drives you?Financial Capacity?Passion?

www.affi.com.ph(02) 654.03.45 | +639062456045

Due Diligence

Make a list

Industry? Food, Retail, Services?

www.affi.com.ph(02) 654.03.45 | +639062456045

Due Diligence

Study& Survey

Know the products?Ask the existing franchisee.

Check the market.

www.affi.com.ph(02) 654.03.45 | +639062456045

Due Diligence

Interact

Who is the Franchiser?Company ProfileSet a meeting

www.affi.com.ph(02) 654.03.45 | +639062456045

Due Diligence

Senses

TryTestSee

www.affi.com.ph(02) 654.03.45 | +639062456045

Key Factors

Skills

Experience

Capital

www.affi.com.ph(02) 654.03.45 | +639062456045

Summary of Important Details

BrandInvestment

Franchiser

Market

Legal

Support

www.affi.com.ph(02) 654.03.45 | +639062456045

10 Identifications of a Legitimate Franchise Company

Legal papers and permits from the government such as DTI for Sole Proprietor/SEC for Partnership and Corporation, updated Mayor’s Permit, local permits (Sanitary, Building, Occupancy, et.al.), BIR Registration, Certification from the governing Government Agency of the business operations (BFAD and DOH for food, TESDA, DEPED, DSWD and CHED for school and training) and Registration from the Intellectual Property Office are consistent and registered to the company name and to its authorized officer.

www.affi.com.ph(02) 654.03.45 | +639062456045

1

L

Engaging partnership between franchiser and franchisee transpires.

www.affi.com.ph(02) 654.03.45 | +639062456045

10 Identifications of a Legitimate Franchise

Company

2

E

Good business operation support like logistics and marketing management is extended to the franchisee.

www.affi.com.ph(02) 654.03.45 | +639062456045

10 Identifications of a Legitimate Franchise

Company

3

G

Imperative details of the franchise agreement/contract are readily available for review.

www.affi.com.ph(02) 654.03.45 | +639062456045

10 Identifications of a Legitimate Franchise

Company

4

I

Two or more owned outlets and at least two franchise outlets are gleaned from the company record.

www.affi.com.ph(02) 654.03.45 | +639062456045

10 Identifications of a Legitimate Franchise

Company

5

T

Important public documents like SEC Registration, Articles of Incorporation and Audited Financial Statements can easily be retrieved.

www.affi.com.ph(02) 654.03.45 | +639062456045

10 Identifications of a Legitimate Franchise

Company

6

I

Membership for the Association of Filipino Franchisers Inc. (AFFI) signifies legitimacy of the brand.

www.affi.com.ph(02) 654.03.45 | +639062456045

10 Identifications of a Legitimate Franchise

Company

7

M

Accredited list of suppliers are patronized to ensure the quality of the products of the franchise brand.

www.affi.com.ph(02) 654.03.45 | +639062456045

10 Identifications of a Legitimate Franchise

Company

8

A

Two or more years of operating under the same company name weeds out the fly by night businesses from the legitimate ones.

www.affi.com.ph(02) 654.03.45 | +639062456045

10 Identifications of a Legitimate Franchise

Company

9

T

Exact office location is used for business transactions.

www.affi.com.ph(02) 654.03.45 | +639062456045

10 Identifications of a Legitimate Franchise

Company

10

E

www.affi.com.ph(02) 654.03.45 | +639062456045

Avoid Franchise Scam

1. Unknown Brand2. Legal Papers3. Unseen Head4. Marketing Strategy- MLM5. Not AFFIliated6. Too cheap… Too Expensive7. Check the Virus… Ask.

www.affi.com.ph(02) 654.03.45 | +639062456045

Verify if a certain company is Legitimate

CALL:

+63 2 654 o345+ 63 906 245 6045

afficallcenter@gmail.com02. 751.3330

www.affi.com.ph(02) 654.03.45 | +639062456045

www.affi.com.ph(02) 654.03.45 | +639062456045

www.affi.com.ph(02) 654.03.45 | +639062456045

AFFIMEMBERS

www.affi.com.ph

www.aquabest.com.ph

www.affi.com.ph

www.aheadph.comwww.aquasuisse.com

www.affi.com.ph

www.bigappleexpressspa.com

www.bibingkinitan.com

www.bubbatealicious.com

www.affi.com.ph

www.bluewaterspa.comwww.binalot.com www.bioessence.ph

www.affi.com.ph

www.chicharific.com

www.crystalclear.com.ph

www.botoyslitson.com

www.affi.com.ph

www.freskagroup.com

www.fiorgelato.com

www.luckyrictrading.com

www.affi.com.ph

www.gotoking.com.ph

www.galileoenrichmentcenter.com

www.fruitasgroup.com

www.affi.com.ph

www.ink.com.ph www.sweetcorner.comwww.japokresto.com

www.marina.com

www.affi.com.ph

www.maginasalphilippines.com

www.lotsapizza.com.ph

www.mr.softyicecream.com

www.affi.com.ph

www.minuteburger.com

www.ministop.com

www.mr.softyicecream.com

www.affi.com.ph

www.minuteburger.com

www.ministop.com

www.prgashaus.com

www.affi.com.ph

www.msgni.comwww.potatocorner.com

www.reyesbarbecue.com

www.affi.com.ph

www.rbx.com.ph

www.ptccom.com.ph

www.affi.com.ph

www.shanghaisiomai.com

www.reyeshaircutters.com www.seaoil.com.ph

www.tinhaodimsum.com

www.affi.com.ph

www.thegenericspharmacy.com.ph

www.s-mics.com

www.chiccodicaffe.ph

www.affi.com.ph

www.ysa.com.ph

www.vcargo.com.ph

www.weservegenerics.com

www.affi.com.ph

www.angelspizza.com.phwww.ga2pharma.com

www.gmbfranservice.biz

www.affi.com.ph

www.generika.com.phwww.figarocoffe.com

www.juliesbakeshop.com.ph

www.affi.com.ph

www.jmpeanutworld.com

www.happyhausdoughnut.com

www.platowraps.com.ph

www.affi.com.ph

www.aquabest.com.phwww.mayon.com.ph

www.affi.com.ph

www.s-mics.comwww.yoyoholidays.com www.aquabest.com.ph

www.affi.com.ph(02) 654.03.45 | +639062456045

www.affi.com.ph(02) 654.03.45 | +639062456045

afficenterforfranchising

"It's not who I am underneath but what I do

that defines me.“

RAFFY G. CANARE

Here’s my number, Call me maybe:

0922. 88. R7A2F3F3I4

raffygcanare

Raffy G. Canare, TMExecutive Director, AFFI

Business Opportunities are visible to those who can see possibilities even in adversities. Maraming Salamat po

www.affi.com.ph(02) 654.03.45 | +639062456045

afficenterforfranchising

www.affiphilippines.mobiPromoting World- Class Filipino Entrepreneurs