|
Page 1 of 3 Franchise sector resilient amid doubtful economy
MANILA, Philippines - The local franchising industry is proving to be resilient, with no signs of slowing down.
The industry, made up mostly of medium-sized entrepreneurs is steadily growing, and with the uncertainty in global economic recovery, it is already outpacing the expansion of foreign companies operating in the Philippines.
Paulo Tibig, president of the Association of Filipino Franchisers Inc. (AFFI), said the projected gross sales of its members is expected to hit P72.6 billion this year, or 20% higher from 2009's P60.5 billion.
"We have not been affected as much by the economic slowdown, there was a bit of a slack in the first quarter, but there has been a rebound mid-way in the second quarter," said Tibig.
AFFI's membership has gone up as well to 119 in the first half from 80 members in end-January. To date, its members have an aggregate 6,000 outlets, and this is seen to be expanding before the end of the
year. The industry has also created nearly 35,000 jobs.
"There is a strong interest to go into franchising, especially from overseas Filipino workers," said Tibig.
Even the business concepts are becoming diverse, although the food business is still dominant with 55% of AFFI's members engaged in this sector.
In recent years however, the non-food sector, especially IT and the services sectors are catching up, said Teresita Ngan Tian, an adviser of AFFI.
"Some of our members are going into the franchising of salons, spas, even schools where the operating costs are more stable compared to the food business."
What is even more encouraging, is that companies that have established themselves in Metro Manila, are expanding in key growth areas in the provinces.
Tian's company, pizza chain Lots'A Pizza which now has 151 stores all over Metro Manila, has tied up with Visayas-based Julie's Bakeshop to set up at least 6 pizza outlets in Cebu.
"We have a master franchisee in the Visayas which is mapping out areas where there is a real chance for our company to grow. We will be replicating that eventually in Mindanao," said Tian.
Some members, are already gaining headway in the global arena.
FoodAsia Corp. which runs the franchise "Bibingkinitan" is currently negotiating to open its first offshore branch in Jakarta, Indonesia.
"We are not only targeting the Filipino market which is a captive market, but also the mainstream market," said Richard Sanz, president of FoodAsia and executive vice president of AFFI.
Tibig said other members like Goto King, Figaro, Fiorgelato, and Aquabest are branching out in Southeast Asia. Potato Corner is gaining ground in the US, not just among the Filipino community, but in the mainstream market as well.
Still, more of its members are looking inward for their expansion.
"That's because there is still a lot of room to grow locally," said Tibig.
He cited the emergence of those in the informal business or underground sector who are shifting into the legitimate or formal business.
"A lot of them are encouraged by the business models that our members have started and are now growing."
Getting off the ground
With interests in franchising unlikely to peter out anytime soon, Tibig said AFFI is holding its 9th franchise show on September 16 to 19 on a much bigger scale.
AFFI Vice President for public relations and marketing Neil Delgado said that floor space at the World Trade Center has been doubled this year to accommodate more members wanting to showcase their products and seal new deals with aspiring franchisees.
"This year's show is a testament to that growth with 380 exhibitors, representing more than 120 unique business concepts from all over the country. This is a 100% increase from last year's show," said
Delgado.
The AFFI show which will also feature lectures by franchising experts, is expected to draw some 25,000 visitors, a lot of them first-time visitors, added Delgado.
"We have in recent years, created awareness and interest in the possibilities that franchising has to offer."
But while many are interested, most are stopped in their tracks because they do not have enough information on how to go about establishing a business, said Sanz.
Many, do not have the financial muscle to support a business and are not that aware of other funding options that they can tap, added Sanz.
"This is where membership in AFFI can open doors for aspiring entreprenuers. Capital and know-how are both crucial to starting and sustaining a business, and unfortunately both are not easy to find."
Sanz explained that AFFI which sets strict criteria for its members, ensures that entrepreneurs choose only credible and legitimate franchises. It has also laid out simple requirements for applicants.
AFFI over the years, created strong links with banks as well as goverment agencies such as the Department of Trade and Industry (DTI) and Go Negosyo to educate entrepreneurs.
"These partnerships, hopefully, will help entrepreneurs avoid the same pitfulls we ourselves have experienced first hand," said Sanz.
Self-regulation
Another issue that AFFI hopes to address in this year's show is the recent moves by the goverment to issue guidelines for the franchise industry.
The DTI said the guidelines intend to protect budding franchisees from fly-by-night franchisers.
The trade department said the guidelines would be outlined in the form of a memorandum of agreement between the DTI and franchise groups like AFFI and the Philippine Franchise Association.
Tibig said however, that AFFI is more inclined to police its own ranks, adding that it had on at least 2 instances, expelled "abusive" members.
Sanz said that a goverment-imposed guideline could stifle the industry.
"We are positioning the Philippines as Asia's franchising hub. Right now, the country has the largest number in the region of homegrown franchises. We certainly want to weed out potential problems, but we have to look for more middle-ground that would ensure that franchisees are protected without hurting
the industry's growth."
SOURCE:
By Rocel Felix, abs-cbnNEWS.com
Posted at 09/02/2010 6:50 PM
Franchisers see 20 percent growth in 2010 sales
The Association of Filipino Franchisers, Inc. (AFFI) is projecting P72.6 billion in sales this year, a 20 percent growth from last year’s combined sales of P60.5 billion, as members expand to the countryside.
"We're expecting a surge in outlets and franchisees particularly in areas outside Metro Manila," Richard Sanz, AFFI executive vice president, told reporters Thursday at a briefing on the 9th Filipino Franchise Show.
Sanz, owner of Bibingkinitan, said there is big demand for small to medium franchise outlets in the north and south Luzon.
"We're trying to decongest Manila by focusing on unserved and underserved areas, first in Luzon and then to other provinces all around the country," said Tess Ngan Tian, the owner of Lotsa Pizza who sits as honorary chair of AFFI.
"Right now we are trying to penetrate Cebu and then we will expand to the rest of the Visayas," Tian said.
The association has 5,546 outlets and stores that employ 36,000 people. More than half of its members are in the food industry, withy spas, salons, and logistics, and schools making up its members in the non-food sector.
The current expansion is not limited to the local market, said Paulo M. Tibig, AFFI president and owner of logistics firm VCargo International.
"A number of association members like Potato Corner, Goto King, Figaro, Fior Gelato, Aquabest, and Bibingkinitan are now branching out in Southeast Asia and as far as the US," he said.
Tibig said that the association was formed to advance the interests of each member company and establish a code of ethics for Filipino entrepreneurs.
SOURCE: MR Gavin/VS, GMANews.TV
AFFI SIGNS WITH TRADE-NET FOR 9TH FILIPINO FRANCHISE EXPO 2010
The Association of Filipino Franchisers, Inc. (AFFI) and Trade-Net Events and Management International (TNEMI) formally signes an agreement appointing TNEMI as the official event manager of the 9th Filipino Franchise Show 2010. Around 340 Exhibitors and 25,000 visitors are expected to attend the expo slated on September 16-19 2010 at the World Trade Center in Pasay City. Photo shows (seated from left) Jill Ang, TNEMI president and Paulo Tibi, AFFI president. Standing are (from left) Mike Bayonito, TNEMI events coordinator, Glenn Yu, AFFI VP for activities, Neil Delgado, AFFI VP for PR and marketing and Gilbert Jim, AFFI VP for membership.
Source: Philippine Star B-9 Billboard August 18, 2010
Show ScheduleThe Association of Filipino Franchisers, Inc. (AFFI) will hold its 9th Filipino Franchise Show on September 16-19 at the World Trade Center in Pasay City to provide aspiring entrepreneurs the knowledge and opportunities for the right business venture. Aptly themed “Championing the Filipino MSME Franchise,” the Franchise show is a one-stop shop of homegrown franchising and business opportunities specifically catered to small and medium enterprises, as well as to established companies wanting to grow their business through franchising. After holding a successful show last year, AFFI will be occupying two exhibit halls this time to accommodate more successful franchisers as well as new and promising brands belonging the food, retail and service industries. The four-day event will also showcase successful local franchisers engaged in new and promising franchise concepts consisting of food, retail, services, system and technology.
Source: Business World 8/S2 Bulletins August 18, 2010
GLOBE SUPPORTS AFFI MEMBERS’ BUSINESS UPGRADE THRU NEGOSTAR DEALS. Members of the Association of Filipino Franchisers, Inc. (AFFI) became beneficiaries anew of telecommunications giant Globe Telecoms, Inc.’s “Negostar” Program for small and medium-sized enterprise (SMEs) when it recently launched its Negostar Fair, where they availed of the opportunity to gear up their businesses with the latest trends and business tools available in the market today.
Globe is also AFFI’s major partner in the upcoming 9th Filipino Franchise Show on September 16-19 at the World Trade Center in Pasay City. Photoshows AFFI officers (seated, from left) VP-Finance Josephine See of Peanut World; Board advisor Bards Lapid-Montinido of Chicharrific, Teresa Laurel of Goto King, and Tess Ngan Tian of Lots’ A Pizza; President Paulo Tibig of V Cargo Worldwide; Aileen Averion of Globe Business; (standing left to right) Aldwin Co and Blue Avelino of Globe Businessl AFFI VP for activities Francis Glenn Yu of Seaoil; Executive Vice President Richard Sanz of Bibingkinitan; franchise guru and AFFI board advisor Butz Bartolome of GMB Franchise Developers; Manny Aligada of Globe Businessl VP for PR and Marketing Neil Delgado of Aquabest; and Ruel Erquiza of Globe Business.
Source: Manila Bulletin - Business B-5 and Business Mirror D2 (Tuesday, August 10, 2010)
GLOBE BACKS AFFI SHOW 2010 - Telecommunications giant Globe Telecoms, Inc. has given its all out support to the Association of Filipino Franchisers Inc. (AFFI) as its major partner in the 9th Filipino Franchise Show on September 16-19 at the World Trade Center in Pasay City. Considered the grandest franchising event this year in the country, the four-day show which will have for its theme “Championing the Filipino MSME Franchise”, will have two exhibit halls to accommodate more franchise-exhibitors. Globe has been AFFI‘s lead sponsor for seven consecutive years now. AFFI is one of the largest networks of small and medium ntrepreneurs (SMEs) in the country. Photo shows AFFI board advisor Teresita Ngan Tian (2nd from the left) of Lots’ A Pizza sealing the partnership accord with Globe business head of corporate and SME segment Manny Aligada (2nd from the right), witnessed by Globe Business marketing head of corporate and SME segments Aileen Averion (left) and AFFI president Paulo Tibig (right) of V Cargo Worldwide and the AFFI Officers recently during the MOA signing rites at the Fior Café in Unit 1A Torre Venezia Condominium, Timog Avenue in Quezon City.
Source: The Philippine STAR Business (B-9) August 9, 2010
BPI – AFFI TIE-UP TO HELD EXPAND ‘KA-NEGOSYO’ PROGRAM – BPI Family Savings Bank (BFSB) has tapped the Association of the Filipino Franchisers, Inc. (AFFI), one of the largest network of small and medium entrepreneurs (SMEs) in the country, to help significantly expand the coverage of its BPI Ka-Negosyo Program. AFFI will shortly stage its 9th Filipino Franchise Shows on September 16-19 at the World Trade Center in Pasay City. Photos shows AFFI President Mr. Paolo M. Tibig (2nd from left) of Vintel Logistics (VCargo) and Vice President for activities Francis Glenn L. Yu (left) of Seaoil Phils with BFSB president Jose Teodoro “TG” K. Limcaoco (2nd from right) and the vice president and commercial loans division head Ma. Mercedes “Cedoy” R. Roces (right) in a “symbolic act of enabling entrepreneurs” during the recent Ka-Negosyo Expo and launch of Ka-Negosyo Business Insurance Bundle at the NBC Tent, Taguig.
Source: Manila Bulletin Business (July 30, 2010)
|
