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FRANCHISING…An Option to become an Entrepreneur.
By:
Association of Filipino Franchisers, Inc. (AFFI)
www.affi.com.ph | www.affiphilippines.mobi
www.affiphilippines.mobiPromoting World- Class Filipino Entrepreneurs
AFFI Center for FranchisingMezzanine 2, 818 Bldg., 169 Pasig Blvd., Bo. Kapitolyo, Pasig City 1603Philippines
+63 2 654 0345
+ 63 2 861 9897 | + 63 2 506 8883
+ 63 917 518 A2 F3 F3 I4
+ 63 922 887 A2 F3 F3 I4
www.affi.com.ph or www.affiphilippine.mobi
http://www.facebook.com/afficenterforfranchising
https://twitter.com/franchisingphil
http://goo.gl/maps/tc9ed
Promoting World- Class Filipino Entrepreneurs through Responsible Franchising ®Promoting World- Class Filipino Entrepreneurs through Responsible Franchising ®
Association of Filipino Franchisers, Inc. ®
National Secretariat OfficeAssociation of Filipino Franchisers, Inc. ®
National Secretariat Office
GPS MAP:Mobi Site
A HAFFI FAMILYThe AFFI NATIONAL BOARD of DIRECTORS
www.affi.com.ph | www.affiphilippines.mobi
Eat Bulaga NEW AFFI MEMBER
www.affi.com.ph | www.affiphilippines.mobi
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.
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Association of Filipino Franchisers, Inc.
Serves as the governing body that safeguards the interest of its members and innovates ways to further its advocacies.
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
http://www.facebook.com/afficenterforfranchising
https://twitter.com/franchisingphil
What is Franchising?
- Is a business practice that an individual can use; a Business System that is proven successful.
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
“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
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Why Franchise?-According to study, 90% Success Rate-Proven Brands-With Established Business System Operation
-Much Better than Traditional Business/ Establishment.
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
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.
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
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
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
1.Product Distribution
i. Supplier- Dealer Relationshipsii. Sells the Franchiser’s Products
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
1.Product DistributionEx:
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
2. Business Format FranchiseIntegration of FULL Business Operations and System that includes but are not limited to:
Operations Business DevelopmentMarketing Sales RetailingLogistics Supply Chain Management
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
2. Business Format FranchiseEx:
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
3. Management FranchiseThe FRANCHISEE provides management service and expertise using the Trademark and Business Name of the Franchiser.
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
3. Management FranchiseEx:
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Franchise Investment Price Range:
Typical Food Cart: P 20k to P 300K
Kiosk: P 100K to P 700K
Services: P 300K to P 10M+
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Investment Inclusions:
Franchise FeeRoyalty FeeInitial InventoryRenovationsMiscellaneous, Legals Revolving FundRentals and Salaries
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
VSVS
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
VSVS
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
VSVS
www.affi.com.ph(02) 654.03.45 | +639062456045
VSVS
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
VSVS
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
VSVS
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
VSVS
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
VSVS
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
VSVS
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
VSVS
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
VSVS
www.affi.com.ph(02) 654.03.45 | +639062456045
VSVS
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Are you ready to Franchise?
The JOY of OBEDIENCE is the SECRET of Franchising
www.affi.com.ph(02) 654.03.45 | +639062456045
Due DiligenceDue Diligence
Self ExaminationSelf Examination
What drives you?Financial Capacity?Passion?
What drives you?Financial Capacity?Passion?
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Due DiligenceDue Diligence
Make a listMake a list
Industry? Food, Retail, Services?Industry? Food, Retail, Services?
www.affi.com.ph(02) 654.03.45 | +639062456045
Due DiligenceDue Diligence
Study& SurveyStudy& Survey
Know the products?Ask the existing franchisee.Check the market.
Know the products?Ask the existing franchisee.Check the market.
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Due DiligenceDue Diligence
InteractInteract
Who is the Franchiser?Company ProfileSet a meeting
Who is the Franchiser?Company ProfileSet a meeting
www.affi.com.ph(02) 654.03.45 | +639062456045
Due DiligenceDue Diligence
SensesSenses
TryTestSee
TryTestSee
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Key FactorsKey Factors
SkillsSkills
ExperienceExperience
CapitalCapital
www.affi.com.ph(02) 654.03.45 | +639062456045
Summary of Important DetailsSummary of Important Details
BrandBrandInvestmentInvestment
FranchiserFranchiser
MarketMarket
LegalLegal
SupportSupport
www.affi.com.ph(02) 654.03.45 | +639062456045
10 Identifications of a Legitimate Franchise Company
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.
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.
11
LL
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Engaging partnership between franchiser and franchisee transpires.
Engaging partnership between franchiser and franchisee transpires.
10 Identifications of a Legitimate Franchise Company
10 Identifications of a Legitimate Franchise Company
22
EE
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Good business operation support like logistics and marketing management is extended to the franchisee.
Good business operation support like logistics and marketing management is extended to the franchisee.
10 Identifications of a Legitimate Franchise Company
10 Identifications of a Legitimate Franchise Company
33
GG
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Imperative details of the franchise agreement/contract are readily available for review.
Imperative details of the franchise agreement/contract are readily available for review.
10 Identifications of a Legitimate Franchise Company
10 Identifications of a Legitimate Franchise Company
44
II
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Two or more owned outlets and at least two franchise outlets are gleaned from the company record.
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
10 Identifications of a Legitimate Franchise Company
55
TT
Important public documents like SEC Registration, Articles of Incorporation and Audited Financial Statements can easily be retrieved.
Important public documents like SEC Registration, Articles of Incorporation and Audited Financial Statements can easily be retrieved.
10 Identifications of a Legitimate Franchise Company
10 Identifications of a Legitimate Franchise Company
66
II
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Membership for the Association of Filipino Franchisers Inc. (AFFI) signifies legitimacy of the brand.
Membership for the Association of Filipino Franchisers Inc. (AFFI) signifies legitimacy of the brand.
10 Identifications of a Legitimate Franchise Company
10 Identifications of a Legitimate Franchise Company
77
MM
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Accredited list of suppliers are patronized to ensure the quality of the products of the franchise brand.
Accredited list of suppliers are patronized to ensure the quality of the products of the franchise brand.
10 Identifications of a Legitimate Franchise Company
10 Identifications of a Legitimate Franchise Company
88
AA
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Two or more years of operating under the same company name weeds out the fly by night businesses from the legitimate ones.
Two or more years of operating under the same company name weeds out the fly by night businesses from the legitimate ones.
10 Identifications of a Legitimate Franchise Company
10 Identifications of a Legitimate Franchise Company
99
TT
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Exact office location is used for business transactions.Exact office location is used for business transactions.
10 Identifications of a Legitimate Franchise Company
10 Identifications of a Legitimate Franchise Company
1010
EE
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Avoid Franchise ScamAvoid Franchise Scam
1. Unknown Brand2. Legal Papers3. Unseen Head4. Marketing Strategy- MLM5. Not AFFIliated6. Too cheap… Too Expensive7. Check the Virus… Ask.
1. Unknown Brand2. Legal Papers3. Unseen Head4. Marketing Strategy- MLM5. Not AFFIliated6. Too cheap… Too Expensive7. Check the Virus… Ask.
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Verify if a certain company is LegitimateCALL:
Verify if a certain company is LegitimateCALL:
+63 2 654 o345+ 63 906 245 6045
+63 2 654 o345+ 63 906 245 6045
[email protected]. 751.333002. 751.3330
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
www.affi.com.ph(02) 654.03.45 | +639062456045
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
www.affi.com.ph
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
www.affi.com.ph
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
www.affi.com.ph
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
(02) 654.03.45 | +639228149882www.affi.com.ph | www.affiphilippines.mobi
Promoting World- Class Filipino Entrepreneurs through Responsible Franchising ®Promoting World- Class Filipino Entrepreneurs through Responsible Franchising ®
Association of Filipino Franchisers, Inc. ®
National Secretariat OfficeAssociation of Filipino Franchisers, Inc. ®
National Secretariat Office
GPS MAP:
Mobi Site
AFFI Center for FranchisingMezzanine 2, 818 Bldg., 169 Pasig Blvd., Bo. Kapitolyo, Pasig City 1603Philippines
+63 2 654 0345
+ 63 922 887 A2 F3 F3 I4
+ 63 2 861 9897 + 63 2 506 8883
www.affi.com.ph or www.affiphilippine.mobi
http://www.facebook.com/afficenterforfranchising
https://twitter.com/franchisingphil