Franchise Scams
Filed under: Franchise Articles, franchising guideAuthor: JIp
Dreams of owning your own franchise can turn into a nightmare once you fall prey tofranchise
scams. Here’s what every potential franchisee should know.
Franchise Philippines success stories are often more written or talked about, like Mang Inasal
Franchise Success Story, but there’s another aspect of franchising that seldom gets enough media
attention – the franchise scam.
People who get scammed in the franchising business naturally don’t want to talk about the
experience. After all, it is proof positive that their “gullibility” has made them lose not just their money
but also their self-respect. Indeed, it would be foolhardy for anyone to publicly admit that they have
been scammed in a franchising deal.
But people will continue to be victimized by franchise scams unless they are forewarned that other
than legitimate franchisors, there are unscrupulous operators who are only after their hard earned
money rather than their participation in a supposedly successful business formula.
Would-be franchisees should keep in mind that if they aren’t discerning and cautious enough,
nothing can protect them from falling victim to a well-laid franchise scam. Thus, for those being
propositioned to buy a franchise, we have gathered pointers from knowledgeable people to help
them decide whether to sign that franchise contract or just politely walk away.
Falling Victim
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Ma. Alegria Sibal Limjoco, chairperson of the Philippine Franchise Association says that the two
major reasons why people are victimized by franchise scams are the following:
Lack of awareness and information about the franchising business
People’s attraction to putting up only a small capital for a business
“Prospective franchisees should know that a business that hasn’t proven to be successful can’t really
franchise itself legitimately,” she says. “In particular, the public should beware of businesses that
require a franchise capital of only P10,000 to P20,000. Not all businesses that require such low
capital could be genuine.”
This concern over very low priced franchises is shared by Rudolf Kotik, a franchise consultant..
“Franchise sellers who offer franchises for as low as P10,000 will often tell you later that this amount
is just a down payment,” he says. And Kotik says that not all scams are confined to franchises in the
P10,000-range. He particularly cites the case of a halo-halo cart operator who succeeded in running
off with P330,000 from a prospective franchisee. Once the later had paid the franchise fee for a
similar cart that he intended to put up in another mall, the supposed halo-halo franchise and his cart
simply disappeared.
To guard against being taken by such scams, Kotik advises prospective franchisees to check first if
the franchisor is legitimate and for real. A good indicator, he says, is a franchisor’s affiliation with any
of the three franchise associations in the country, namely, the Philippine Franchise Association, the
Association of Filipino Franchisers Inc., and the Filipino International Franchise Association.
Warning Signs
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In a recent seminar for overseas FIlipino workers, Armando Bartolome, president of BMG Franchise
Developers, Inc., identified three telltale signs that a seemingly great franchise opportunity is a
scam. The franchise agent would make you believe:
that the franchise comes very cheap
that you can recover your investment in such a short time
that you would become a millionaire as a franchisee and could then afford to stop working.
Bartolome warns that all these simply can’t be true with legitimate franchises. “one more thing,
people pushing a franchise scam won’t even let you know who owns the franchise,” he says. “Often,
the agent of a franchise scam will simply give you a three-page franchise agreement to sign. When
this happens, simply ask yourself: How can you put down all of the franchisor’s and franchisee’s
obligations in just three pages? A real franchise agreement will probably be as long as 35 to 45
pages. In fact, some very thorough agreements can have as many as 200 pages.”
In a legitimate franchising arrangement, Bartolome explains, the franchisor and franchisee have to
work together in running a specific business. Their relationship will be defined by a contract called
the franchise agreement. Without this agreement, there’s no franchise to begin with.
Staying Protected
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Bartomolome suggests that to avoid being victimzed in a franchise scam, the prospective franchisee
should do the following:
Evaluate the prospective business franchise
Check out the longevity of the product to be sure that it isn’t just a fad
Appraise the product’s competitiveness with other products in the market
Find out how profitable the product is
Identify the business model (Is it a cart investment? Will it be located inside or outside a
mall?)
Determine the total investment a franchisee needs to put up
Identify the various support programs that will be extended to the franchisee.
“When you buy a franchise, you’re actually buying the experience of the franchise owner in running
the business, and you’ll be selling the name of the franchised product,” he says. “Obviously, you
can’t get all of these for cheap. These days, you may be able to get a legitimate franchise for as low
as P150,000, but you should be suspicious of these being offered for only P10,000 or P15,000. They
are likely to be scams.”
This view about the pricing of franchises is shared by Richard Sanz, president and CEO of Tea
Square Food & Beverage Inc. He suggests that for prospective franchisees to appreciate why a
franchise can cost so much, they should ask themselves this hypothetical question: If you’re a
franchisor who has spent so much time and money to put up a system for an efficient and profitable
business, and if it took you several years to make your brand name well known, would you sell that
business for only P10,000?
Sanz then explain the logic behind franchising: “A franchisor sells a franchise because the business
has proven to be successful, and one way to expand the business is to replicate it through a
franchise. To be able to franchise the business, however, the franchiser has to develop the whole
operations system and document it. This way, the franchisor can teach the franchisee every aspect
of the business.- the product, the marketing strategy, the accounting system, the customer service.”
What surely marks a franchise scam, Sanz points out, is the absence of support to the franchisees.
“Once you have paid the franchise fee of, say, P10,000, you can be sure that the scam franchisor
will be gone in a matter of days.” he says. According to Sanz, victims of a franchise scam usually will
find themselves in the following situations:
They couldn’t find the supplier for the franchised product when they start operating and the
franchisor is nowhere to be found as well.
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They will be enticed to sign the franchise agreement with the assurance that there would be
no franchise fee, but before they can begin to operate, they will be asked to pay hidden charges as
much as P200,000.
Paying Attention
Mercedes “Chedeng” Anglo, a retiree from a paper manufacturing company, says that people get
victimized by franchise scams because they don’t study their prospective business well enough.
“Most of them only think of how much they can earn big money fast and don’t really pay much
attention to the business details,” she says.
She herself got scammed once. That was when a friend invited her to invest in the selling of some
very popular brands of consumer goods. She readily shelled out P5,000 for the supposed franchise
but nothing came out of her investment.
Despite that experience, Anglo kept an open mind about franchising. In 2003, she decided to buy a
Zagu Pearlshake franchise. She did so because she had been impressed by the long line of
customers at Zagu outlets in the malls. So one day, bringing with her some of her reirement money,
she went directly to Zagu’s main office to apply for the franchise.
She took note that there were many employees in the office, and that the company’s officers were
also on hand to entertain prospective franchisees. This convinced her that Zagu was legitimate.
Based on this experience, she has this advice to would be franchisees: “Before deciding, observe
several outlets of the franchise to see for yourself if the product really sells well. Then once you have
decided, negotiate in the franchisor’s office and don’t pay for the franchise just anywhere. Do it in the
franchisor’s office.”
Still another strong indication of a risky franchise is when its owners are not selective in choosing
franchisees. This is a bad sign considering that the brand name of the franchise is greatly dependent
on the performance of the other franchisees in the system. As Sanz says, “It takes just one bad egg
and you’re done for.”
How to Deal With Common Problems in Franchising?
Filed under: Franchise Articles, franchising guideAuthor: JIp
Franchising is said to be a partnership between the franchisor and the franchisee. Like any other
relationship, problems do exist, so with franchise. If will not be solve the problem immediately, it may
worsen.
Not because franchising is less risky, you will no longer experience problems with it. Michael
Hemenway, founder and CEO of brandEXPANSION (a United States-based firm that deals with all
aspects of franchising) says “Everyone buys a franchise with the ultimate aim of succeeding as a
franchisee.” In fact, most people thought that franchising is a quick-money return business and has
the assurance of success rate. Which simply shows that some people still don’t understand
franchising even though they already have it. Keep in mind, the key to have a successful business is
to work hard, and being optimistic.
Some entrepreneur says that franchising is like a marriage that bind with at contract. I agree with it!
In marriage you have to be loyal, and respect each other. However in franchising, the contract binds
the franchisor and franchisee, with respect, trust and loyalty as a business partner. If one of these
quality break down, problem begins.
One common problem in franchising is the communication. “Communication is at the core of every
franchisor-franchisee relationship,” says Steve Whiteside, an entrepreneur and consultant for
franchise organization. If one will not communicate well with his partner, probably this can cause
problem, especially if its a business matter. And so, most franchisors try to build a rapport the
moment they meet their franchisee for the first time. Communication barrier sometimes a hindrance
to build a good communication and work together effectively.
The Expectations and Perceptions
What do you expect in putting a franchise business? Or what are your expectations about your
franchisor/franchisee? You may think of so many expectations in your mind, but the real
expectations of the relationship start to form at the first meeting between the potential franchisee and
the franchisor.
Some people expect that franchising can make them rich in just a short period of time. I may say that
there is no assurance on that. Once you expect for something, it must be in a positive side.
Partnership works at this time. Communicating with each other and both aiming high for the
business is useful. As long as you are with a good franchisor, and you are doing your part as a
franchisee with focus, so no reason to fail, just be optimistic.
Communicate Effectively
Communication barrier arises when franchisees feel they are not on equal footing with franchisors.
Things are always unequal if one party feels that its input has no sway or power to influence. Poor
communication cause trouble between franchisee and franchisor. It is very important that both
parties receive what each other wants to say. Even in franchisee-staff relationship, communication is
very essential. You better prioritize the information going in and out. If problem occurs between you
and your franchisor, try to discuss it formally and be professional.
Building Trust
Before signing in a franchise, always remember that you are entering a relationship with your
franchisor, which trust is required. If there so many hidden agendas or your instinct tells you that
something is wrong, you might be a victim or franchise scams. However,trust is earned and not
comes naturally in each and everyone of us.
Trust is one of the most important element in a relationship to work, without it, there is no way to
ground the relationship, and so communication may break too. In franchising, trust is important not
because of the money involve, but its your passion or willingness to put a business.
It all starts from the first meeting between the franchisor and the franchisee. Once trust is applied to
the relationship, effective communication follows and so on. Together with a proper support from the
franchisor, hands-on franchisee, focus, patience and being optimistic, then your franchise will
somehow be successful. Just bear i mind that, “never break the trust that you earn.” Once it break, it
is difficult to bring it back, and conflict may occur if trust is missing in a relationship.
What Kind of Franchise Business is Perfect for Me?
Filed under: ArticlesAuthor: blutab
Are you planning to put up a business and still undecided of what kind of business to make? Or you
are desiring to have a business that is easy to manage? Well, I may say that franchise business
Philippines is a right choice for you.
Familiarizing with franchising business, it is the practice of using another firm’s successful business
model. In short, you are going to use a successful business’ name. Franchising their names will
easily attract customers. That is your edge to your competitors. Franchising popular business is
good, but expect that the franchising fee is expensive. But don’t worry too much, because it has a
higher percentage of returning the capital you invest than putting your own business.
If you will notice, franchising business are getting in demand today. Well, it’s because it is the
simplest and easiest way to open a new business specially for the beginners. But, you must also
consider the kind of franchise business that is right for you. You cannot easily open a business that
is not in your interest. Always consider your interest when you open your business. Let’s say for
example, you love to eat burgers, or ice cream. It’s better if you will go for an ice cream or burger
franchise business. You can manage your business more focus if your interested into it.
Getting interested with cars or automobile? A car franchise business is perfect for you. A lot of car
franchise business are now in the market, some are personally owned by celebrities. Franchising a
car business is more expensive than the burger and ice cream business, because you need more
staff and equipments. Remember, always try to consider your interest to your new business. Your
interest will boost your attention to focus more on your business. Your knowledge and experience in
cars or automobile will help you expand your way of managing your business.
It seems that most people today are concern with their health or facial and body care, and so, salons
and health care business boom to the business industry. It is a great idea putting a salon if you are
a beauty and health conscious person. People are more health and beauty conscious that’s why one
of the top franchise business in the Philippines is the health and body-focused franchise business.
Some celebrities have their franchise salons because they are interested with facial care, and so, it
is easy for them to manage, advertise and attract customers. It’s another edge for the business.
Always be open-minded in business matter.
As I search for some top franchise business Philippines, I found out that franchise business related
to foods is the number one on the list. Aside from that people loves to eat, foods are the fastest and
easiest to sell. Either a food cart business or a restaurant franchise business is a good option. For
food cart franchise business, placing your cart to a convenient place will be a nice idea. The more
people, the more costumer to buy your product. Some best locations are the park, mall, school or
universities, and bus or train stations. Because the food cart can place anywhere in those places,
many beginners are choosing food cart franchise than other business. Almost the same with the
restaurant franchise business, but the problems is you need a bigger place. You cannot put your
restaurant in the train stations. Some restaurant are near the company office or a commercial
buildings. I just want to share the book that I read before. It’s a story about the number one franchise
restaurant today. They say that a perfect place for your business is the number one thing to be
consider when putting a business. Regardless of their product, the restaurant admits that there are
better burgers, chicken or spaghetti than they have, but the perfect place is what making them the
number one restaurant today. So, you must keep this information and try to apply it.
Whatever kind of business you want to make, the decision is still up to you. What I have posted are
tips and information that may help you upon making a decision on putting your franchise business. A
car, food or health and body-focused business are some of the options you can choose. You just
need to be wise and open-minded during the decision making. Your interest in the business you
want to put up to must be consider too. Good luck on your business and keep learning.
Franchise Consultant Do You Need Them?
Filed under: Articles, Franchise ArticlesAuthor: JIp
Putting up your own business isn’t easy; you have to study every detail from your smallest piece of
raw material up to your target market. But if you do not have enough time to do some feasibility
studies, franchising is the solution for you. When you franchise, you will have a business that name
has already been established, what you got to do at least is to hire someone who will run your store.
Franchising has been rampant because it won’t use much of the time you have to use in putting your
own line. There are different companies that allow it for their name to be proliferated and as well as
the income would be generated without the cost of managing number of stores at a time. However if
you are still unsure of the franchise you will get, you ought to hire franchise consultants. Franchise
consultancy has been defined as a fast rising professional industry devised for investors,
businessmen and economist to be able to assess businesses and its capability to be marketed.
Franchise consultants like any other consultant does the same thing, to advise the client on what
business he or she should go to. Franchise consultants often say that what they will give you is free
of charge, no matter how they will advise you and will study about it, it will be free. Actually,
consulting is free in your part but no one would be that of a Samaritan where he puts every bit of
knowledge he has for free – of course the consultant will get commission as high as 40% from the
franchise company immediately after the deal is done. Nevertheless one should be aware that there
are franchise consultants who will refer you to a franchisor that will give him the biggest commission.
Better yet try to read everything in his research or papers so that you will not be wasting huge
amount of money. Being a franchise consultant is comparable to a real estate agent, they both are
middleman to a buyer and seller, and they also both get commission from every done deal. The only
difference you can see is a franchise consultant should be more equipped with data regarding what
business he is recommending to his client. He should be aware of the system in that kind of
business and be aware of the basics in that kind of business.
Usually a franchise consultant works with franchise-knowledgeable attorney and franchiseknowledgeable accountant. The two professionals mentioned above are very fundamental when it
comes to decision making of the client. The franchise knowledgeable-attorney would also study the
contract like the consultant but he would be focusing more on the legal ground, like what could be
the grounds for violation both on the side of the franchisor and franchisee. The franchiseknowledgeable accountant would focus more on the money matters specifically the checks and
balances of the company. He should be able to present to the franchisee some financial predictions
from the checks and balances together with the feasibility studies of the franchise consultant.
There are benefits one could get from franchise consultants, here are as follows: 1. The franchise
consultant will teach the franchisee on how to study the trends of our economy – this is very
important because one should be aware when to get how much stocks; 2. He will as well teach the
franchisee to understand the franchise agreement contract – very essential because if the franchisee
will violate any rules within the contract there is a big possibility that the franchisee will be sued and
instead of gaining money, he might lose more; 3. He will teach you marketing strategies for your new
business – very vital for a franchisee to know, because if he would not be aware of such his
business would flunk, he should know how to market the products he has and eventually create a
strategy of his own to earn more money.
At the end of the day, franchise consultants serve two masters. He should help the franchisee look
for a suitable business based on the specific budget, location and manpower. He should also help
the franchisor by means of building a high-end brand name for every franchise he carries and as
well as making the franchise more franchise-able by studying more into it.
How to Apply for Jollibee Franchise
Who would have thought that a mere Magnolia Ice Cream Parlor named Jollibee at Cubao will turn
out to be one of the most Popular Food Franchise in the Philippines today? It all started during 1975
and from there on in made a drastic change as to shift to a Hamburger Joint, by the year 1978 they
introduced one of their major product named “Yumburger” and “Chicken Joy” which became quite
popular to the masses not just because they’re delicious and affordable but they give off happiness
and joy to the people who eat them. Their mascot also became quite popular with the young ones;
the wide smiling orange striped honeybee named Jollibee in which most children couldn’t resist not
hugging really boosted their sales.
Jollibee Foods Corporation runs and owns the Jollibee franchise, showing off their great managerial
skills and unique strategies have led them to a spot at the Philippines Top 100 Corporations in just
10 years. Jollibee Foods Corporation is also the first Philippine Fast Food Chain to break the P1
Billion sales mark during 1989, to top this off they also became the first Food Service Company to be
listed in the Philippine Stock Exchange which led them to further heights.
The company continued to prosper and later on became so successful that they even bought several
more food chains that are well known in the Philippines, they bought the Oriental themed restaurant
type Chow King, the popular Pizza restaurant named Greenwich Pizza, and by 2005 they also got
their hands on the famous and well-known Red Ribbon Bakery, to top it off they also acquired the
French themed Café and Bakery known as Delifrance. They have also expanded to franchising even
In other countries, this shows that they really are one of the best companies ever brought up. As of
today there are more than 600 Jollibee Franchises all over the Philippines and more than 50% of
these stores are owned and operated by Franchisees whom decided to join their growing empire.
So what are you still idling for? Why not join them in their business venture and have a part of their
success. Here’s some information that will be able to help you if you’re interested to franchise your
own Jollibee.
What Jollibee is Looking for as Franchisors
- Self-driven and entrepreneur at heart
- Has a good community standing
- Posses great Leadership and People-Handling Skills
- Knows how to movitate people well enough to be more productive
- Willing to devote certain amounts of time and attention to fully understand and utilize the day to day
operations of the restaurant
- Willing to undergo training which will enable you to learn more about operating the restaurant
- Has the capability to fund the investment.
How much is needed to invest in a Jollibee Franchise?
It varies on the size of the store you wish to set up, but mostly the final store and facilities would
range from P20,000,000 to P30,000,000.
What comprises the said investment?
Upon investment of a Franchise, it includes the construction of the store, kitchen equipment, and
facilities, furniture and fixtures, air conditioning system, signage, and pre-operating expenses.
Does the Corporation provide financing for the franchise?
Sadly they don’t, so it is best that you look for a trusted financing yourself.
Want to apply for a franchise but don’t have a feasible location in mind?
You would still be able to apply for a Jollibee Franchise even if you don’t have any location ready
yet, but bear in mind that Jollibee Foods Corporation would prioritize applicants who have signed up
with site/locations ready for the franchise. Those who fail to do so would be included in the list of
interested applicants who applied without sites for future reviews and transactions.
How much will be the Return on Investment?
Well, it varies depending of several factors that affects your franchise’s profitability and performance.
These includes sales, market potential, investment and how well the management is, expenses can
also affect the ROI in such a way that how well you use your resources and how can you keep your
costs and expenses at the minimum to optimize profitability. This is a very delicate topic and it would
be best if discussed during the interview process.
Aside from Individuals, can Corporations apply for a Jollibee Franchise too?
Yes they can, but it a sense that an Individual can organize a corporation only after the approval of
the Franchise, it is also a must that the said individual should have clear majority ownership of the
corporation.
How long is the Training Program?
The franchisee himself is required to complete the 3 month full time Basic Operations Training
Program at a designated training store in which Jollibee Foods Corporations would assign.
Are they also the ones who would look for the crew?
Partly yes, they will assist the franchisee in recruiting and training the management team. However it
is the franchisor’s responsibility to pay their salaries and benefits while in training.
If you really are interested to start your own Jollibee Franchise then prepare a proposal
containing the following documents:
- Letter of Intent – Must contain the exact address of the proposed site, personal information such as
your
mailing
address,
contact
number,
complete
name,
etc.
- Vicinity Map of Proposed Site – This is very necessary in order for us to send a representative in
which would go to your proposed site and conduct an on-site evaluation.
Legal
document
certifying
your
ownership
of
the
proposed
site.
- An up to date resume or bio-data.
Upon
completing
the
requirements,
send
them
to:
Jollibee Foods Corporation, 9th Floor Jollibee Plaza, #10 F.Ortigas Jr. Road, Ortigas Center, Pasig
City 1605. Do note that submission of an application form don’t oblige neither Jollibee nor you in any
way. It is just the first step in the application process in which is an evaluation of your proposed
location.
KFC Franchise Philippines
Kentucky Fried Chicken (KFC Franchise) has built a strong foundation over the years with both
timeless original recipes and innovative products. Take a trip down memory lane and discover the
beginnings of a world-famous restaurant that has captured the hearts of chicken-lovers, all around
the globe. In 1980 Harland Sanders is born just outside Henryville, Indiana. 1930 the midst of
depression, Harland Sanders opens his first restaurant in the small front room of a gas station in
Corbin, Kentucky. Sanders serve as station operator chief cook and cashier and name the dining
area “Sanders Court & Café.” On 1936 Kentucky Governor Ruby Laffoon makes Harland Sanders
an honorary Kentucky Colonel in recognition of his contribution to the state’s cuisine. Then on 1940
is the birth date of the Original Recipe Chicken. 12 Years after, Colonel begins actively franchising
his chicken business by traveling from town to town and cooking batches of chicken for restaurant
owners and employees. The Colonel awards Pete Harman of Salt Lake City with the first KFC
franchise. A handshake agreement stipulates a payment of nickel to Sanders for each chicken sold,
and in 1957 KFC or Kentucky Fried Chicken first sold in buckets. Then on 1964 Kentucky Fried
Chicken has more than 600 franchised outlets in the United States, Canada and the first overseas
outlet, in England. Sanders sell his interest in the U.S. Company for $2 million to a group of investors
headed by John Y. Brown Jr., future governor of Kentucky. The Colonel remains a public
spokesman for the company. Kentucky Fried Chicken Corporation goes in public in 1966, and in
1971 more than 3,500 franchised and company-owned restaurants are in worldwide operation when
Heublein Inc. acquires KFC Corporation. And 8 years after KFC cooks ups 2.7 billion pieces of
chicken. There are approximately 6,000 KFC restaurants worldwide with sales of more than $2
billion. Colonel Sanders dies in 1980 with stricken leukemia.
KFC is one of the Great Brands of one Great Company and that is YRI or Yum! Restaurants
International based in Dallas, Texas is the largest division of Yum! Brands Inc. with nearly 11,500
restaurants outside the U.S. (excluding Yum! China Division). These have 700+ strong families of
international franchisees who together with YRI operate close to 34,000 restaurants worldwide. Yum!
Brands are committed to franchising with over 80% owned by independent franchise operators. They
actively are seeking operators with the vision and capability to open multiple restaurants around the
world.
In terms of Franchise Philippines KFC stared its operation in 1967, it was managed by different
franchisees. On June 1994, Manuel U. Agustine obtained the sole franchise over the sale
distribution of KFS products in the Philippines, under the corporate KFC Quick Service Restaurants
(QSR) Corporation. Now the management of KFC is working hard on it best to maintain the
excellence and the standards that made KFC one of the fastest growing Quick Service Restaurants
in the Industry. The major expansion program is not only in Metro Manila area but also in the
provincial areas in the Country to meet its growing customer demand.
Franchising KFC at YUM! Brands, you should know Yum! Value Network, for you to be a successful
professionals becoming a multi-unit franchisee and by experience they will help you and support you
in every steps on the way, through development experts, business coaches. Here are some
questions and answers that can help and give you an idea about Franchising KFC at YUM! Brands:
• Do you have a passion for operations?
o The restaurant business is a hands on business
• Are you committed to building people capability?
o Multi-unit ownership requires you to be a team builder
• Do you have capital to grow?
o Off course you should have capital; you and your partner must have at least $360,000 in liquid
assets.
Yum! Value Network consists of many programs and support staff all focused on enabling you to
compete, including:
• Brand Recognition
• Customer Attraction
• Competitive Advantage
• Franchise Value System
• Multi-Unit Growth
• Economic Stability
• Brands that Give Back to the Community
• Development Expertise
• Access to Financing
• Solid Business Support
• Quality On-boarding & Training
• Reliable Supply Chain
• Return on Investment
Process
1. Qualification (4-6 weeks)
• Review application
• Issue Franchise Disclosure Document (FDD)
• Verify assets and geographic interests
• Conduct and review credit check and franchise profile
• Overview training requirements
• Overview Operating Plan outline
• Conduct franchising background check
Franchisee Prospect
• Sign and return Franchise Disclosure Document (FDD) receipt
• Review FDD and prepare questions
• Complete franchising profile
• Begin creating operating plan
2. Operations Interviews(4-6 weeks)
• Conduct Interview(s)
• Discuss Operating Plan to ensure business understanding
• Explain site selection
• Identify and discuss issues
• Conduct operations interview
• Set up one and a half day store experience
• If Franchise Prospect meets all qualification standards, they are approved as a Franchisee
Candidate
Franchisee Prospect
• Attend one and a half day store experience (if necessary)
• Complete operations plan
• Interview as needed
3. Site Strategy Exploration(8-10 weeks)
• Determine best site selection strategy
• Review KFC Development Service options
• Discuss scale requirements and future development
Franchisee Prospect
• Outline development vision
• Identify focus trade area(s)
• Align next steps
Note: Franchise Candidates seeking to acquire existing restaurants will document their interest and
will be contacted if deals are available that meet their criteria.
4. Securing Site Control(12-16 weeks)
• Complete Trade Area action plan
• Establish priorities
• Develop next steps with the Franchisee Candidate
Franchisee Prospect
• Provide feedback/action plan
• Endorse action plan
• Negotiate for site
• Send letter of intent
• Negotiate store purchase (if buying stores)
5. Site Registration / Approval(6-8 weeks)
• Complete site registration workbook
• Provide Franchise Site Analysis Survey (FSAS) and deposit form
• Submit site registration to Brand desk
• Determine if proposed site can be cleared for development
Franchisee Prospect
• Complete site deposit form
• Remit funds
• Sign, date and remit site analysis survey form
6. Franchise On boarding(6-18 months)
• Provide on boarding support via regular calls
• Schedule/conduct appropriate training
• Provide development expertise
• Provide countdown to opening checklist
• Support Grand Opening
Franchisee Prospect
• Finance your restaurant
• Build your restaurant
• Hire your team
• Attend appropriate training
• Grand Opening
7. Preparing to Grow(On Going)
• Provide business support
• Develop marketing calendar
• Provide brand leadership
Franchisee Prospect
• Run a great restaurant – be certified “growth ready”
• Execute marketing programs
• Build team capability
• Create a growth vision
• Register and build additional sites
Requirements
• Business Concept – You should define what type of business you want.
• Longevity – Know how long has the business been in existence.
• Profitability – Know your financial, how financial picture of business cost?
• Products and Services – be in well defined and consistent in quality.
• Duplication of branches – know whether there are branches that are set up and know how long and
consistent they are.
• Documentation- is the procedures are easy to follow?
• Commitment – Is the entrepreneur committed in accepting franchisees?
• Inquiries- Is the company receiving inquiries from various people if it is franchising?
Chowking Franchise in the Philippines
Last time we talked about Jollibee Philippines franchise and McDonald’s Franchise in the Philippines. And
we believed that we need to make more posts about the differentfranchises in the Philippines to help
our readers and entrepreneur in deciding what franchise business that they are most suited for. If you
have comments or suggestions on how to improve Franchise Philippines, please use our contact form.
On to the good stuff…
Chowking is a Philippine-based Chinese cuisine fast-food restaurant chain, predominantly selling noodle
soups, dimsum and rice toppings. It was founded in 1985 by Robert Kuan as a Chinese counterpart to
American fast-food giant McDonald’s, Chowking expanded steadily through the 1980s and 1990s, and
eventually venturing into international markets, such as the United States, Middle East and newly
Indonesia. The chain was bought by Jollibee Foods Corporation in 2000[1], who have since continued
both local and international expansion.
Chowking Franchise Good Points
Chowking pioneered the quick-service Oriental restaurant concept in the Philippines which combines the
best of Western fast-food service and the delicious taste of Chinese food in Oriental restaurants
2005 Most Outstanding Meat Processing Plant in Metro Manila
-National Meat Inspection Service
This unique dining experiene has captured the hearts of millions of customers in Chowking’s more than
300 stores in the Philippines, and more than 20 others in the United States, the Middle East, and
Indonesia
Things to Know About Chowking Franchise
What are the bases for the approval of a franchise application for Chowking franchise?
Major considerations are the viability of the proposed site and the personal qualifications of the applicant.
What are the qualifications required of an applicant?
An applicant must possess good moral character, keen entrepreneurial business sense, financial
capability to invest in the business and the ability to inspire leadership.
How much is the required investment for Chowking Franchise?
For a leased site, it ranges from P9M to P12M, depending on the size of the store. The investment covers
kitchen facilities, construction and finishes, furniture and fixtures, signages and others. It also includes the
P1M franchise fee.
What is the expected ROI of Chowking Franchise?
Depending on the sales and cost performance of the store, the investment payback ranges from 3-4
years.
A detailed financial feasibility study is discussed with the potential franchisee during the evaluation phase.
Does Chowking provide financing?
Chowking does not provide financing.
What is the size of a typical store?
An ideal site should have an area ranging from 250 to 300 sq.m.
Does Chowking provide sites?
It is the applicant who should look for a site.
Chowking will do the feasibility study and approve or reject the proposed site.
Does Chowking provide the store personnel required?
Chowking does not directly hire employees for the franchisee. However, Chowking assists in the
recruitment and training of managers and provides HR management guidelines.
Can a corporation apply for a Chowking franchise?
The franchise is awarded to individuals only, although the franchisee can form a corporation where
he/she is majority owner.
How long after Chowking franchise approval can the store open?
About two to four months after the site turnover.
What is the duration of Chowking franchise?
The Chowking franchise contract is for ten years, renewable for another term, provided certain
provisions in the contract are met.
What are the requirements for application?
Letter of Intent, location map of the site, and a duly-accomplished application form.
Top 8 Best Philippine Franchises
Franchise Philippines aims to provide Filipinos on how to start their own franchise business. But,
what happens when you don’t know where to start? What franchise should I get? Should I get the
help of franchise consultants?
First of all, if you’re starting out, you might want to save most of your money for your franchise fee
and other expenses and just do the research as well. This post is about that. We scour the depths of
the world just to know what are the 8 most popular Philippine franchise today. Ok, maybe not the
whole world… Let’s get started.
8. Water Refill Franchises
The reason why most businesses succeed and others not, is because they focus on the needs of the
people. Water, is a basic need. That’s why, water franchises are all over the place and they make
money.
Minimum Investment Required: P20,000
Why Is It Profitable: Water is a basic necessity
7. Education & Training Franchises
With millions of graduate students finishing their studies on a quarterly basis and expected to rise
even more every year, review centers and educational training schools are a good way to franchise.
These franchises never go out of style because you can also target the market such as undergrad
students who wants to take vocational courses and preschools for toddlers, which are all profitable
when done right. Also to note that there are a lot of people wanting to go to vocational nursing
schools and care giving courses. It is a good safe investment.
Minimum Investment Required: 1Million
Why Is It Profitable: Fresh graduates reviewing for licensure exams, vocational courses &
preschools.
6. Bakery & Food Store Franchises
Ahh, another necessity. Who doesn’t eat pandesal? Bakery and food store has been with us since
our lolo’s and lola. And there’s a reason why there are still there up to now, they are profitable and
time and time again, Filipinos just like to eat. Your morning breakfast just wouldn’t be complete
without a pandesal or a bread together with a nice cup of coffee.
Minimum Investment Required: P250,000
Why Is It Profitable: Food is a necessity. Pandesal & bread has been a part of Filipino culture.
5. Bar & Cafe Franchises
Bar’s are always been a go getter. If you own a bar, especially a reputable franchise, you can always
assume you will get the return of your investment. Now on the other hand, Cafe franchises are good.
Filipinos love coffee. Remember the time when Starbucks first opened their shop in the Philippines?
It’s a so much hit that even the socialites go starbucks all well dressed just to drink coffee in the late
afternoon. Cafes signifies class and your market will be those that can afford to pay more for every
cup. Customers plus high buying potential is equals to more profit.
Minimum Investment Required: P250,000
Why Is It Profitable: With popular franchise, return of your investment is almost at 100%
4. Personal Care Franchises
Celebrities took part in the popularity of this franchise industry. Personal care franchise are easy to
promote simply because celebrities are already promoting them. If local stars & celebrities are
talking about them rampantly, you know that the followers and fans are going to go after that
franchise. Also, spas and sauna has become a weekly habit for some people that became a part of
their routine.
Minimum Investment Required: P200,000
Why Is It Profitable: Celebrities creating buzz will most likely ease your marketing campaign.
3. Service-Type Franchises
What are these service-type franchises? Car wash franchises, printing shops, and the most popular
call centers these are all profitable franchises under this category. We know how many people wants
to work in call centers. And call centers are in demand outside the Philippines because of our ability
to talk in English clearly. One of the best in Asia. Picture this, Americans paying you, the franchise
owner, dollars and you are paying your employees pesos. This is a lucrative franchise indeed.
Minimum Investment Required: P2 Million
Why Is It Profitable: Very lucrative. International and world market possible.
2. Fast Food and Restaurant Franchises
Yet again, we see the proof that Filipinos really love to eat. Who doesn’t know Jollibee, McDonald’s
& KFC? Fast food franchises are almost all the time will never fail. Though the return of investment
will be somewhat long, the fruit of long term income is certainly obtainable. Jollibee, McDonalds and
other fast food franchises maybe a bit too much for people that are starting up, there are other
choices as well. Small fast food franchises are out there and you can still earn from them.
Minimum Investment Required: P150,000
Why Is It Profitable: Filipinos love to eat!
1. Food Cart & Kiosk Franchises
When you’re talking about necessity, food cart has it, we are talking about food right? When you’re
talking about accessibility, food carts, they are everywhere! Standing and waiting at a small corner of
the street or a mall waiting for you to buy a piece of something to eat. When you’re talking about
price, food carts can cost at around 20,000. A very small investment. There’s nothing bad to tell
about this type of franchise and highly recommended for people who are starting up and even those
who already have the money. Be careful though where you buy your franchise and make sure that
you’re getting them from reliable companies.
Minimum Investment Required: P20,000
Why Is It Profitable: Filipinos love to eat. Small investment needed. Accessible to anyone.
Closing Remarks
All minimum investment required are just an estimate and of course, this vary from one franchise
company to another. You can discuss about this article on our franchise forum. And if you’re still not
decided, you can browse our franchise directory.
We hope we have helped you decide on which franchise business to go for. We at franchise
Philippines only wants to help fellow Filipinos in this industry. We are not in any way associated with
any franchise companies. We are only doing this as a sign of giving back for our fellow Filipinos. So
go do some business now!