Okay, so you’ve weighed the pros and cons of franchising and have decided to pursue it. Now, what?
1. Choose a franchise
Whether you’re aiming for a small food cart business or a restaurant chain, it’s important that you take into account certain factors and do proper research first when selecting a franchise business.
Budget
Establish the amount that you’re willing to invest, so you can narrow down your options. If you find yourself being short on capital, you could consider getting a franchise business loan.
Company Reputation and Legitimacy
Nobody wants to unknowingly invest in an illegitimate and unreliable business, but it doesn’t mean it’s impossible to find success with lesser known franchise brands. Find out if the person or company is properly licensed and registered in appropriate government offices like DTI and SEC. It also helps to check if they’re a part of reputable franchise groups like AFFI (Association of Filipino Franchisers, Inc.), PFA (Philippine Franchise Association), and FIFA (Filipino International Franchise Association).
Market, Location, and Competition
Brand power alone isn’t always enough to make a franchise business successful. Make sure that whatever franchise you choose would fit in your preferred site location and the nearby market. For instance, it might not be the best idea to set up a high-end restaurant franchise near an elementary school where the primary market are kids.
To give you an idea on what franchise businesses you can consider, here’s a short list of popular franchise brands here in the Philippines.
- Potato Corner
- Master Siomai
- Siomai House
- 7 Eleven
- Dunkin’ Donuts
- Chooks To Go
- Jollibee
- Mang Inasal
2. Apply for your chosen franchise
Once you’ve trimmed down your franchise options to one, you can finally proceed with applying! Application procedures and requirements differ from franchisor to franchisor, but in general, you can expect to do the following:
Submission of Documents
Below are the usual documents that many franchisors require. It’s a good idea to prepare these even if you haven’t fully decided on what franchise you want. But if you already have a particular franchise business in mind, you can check their website or get in contact with them for other requirements they might have.
- Letter of Intent
- Application Form (completely filled-out)
- Valid Government-Issued IDs
- Resume
- Target Site Location Details
Meetings, Site Inspection, and Evaluation
After submitting your documents, the franchisor will reach out to you to schedule a meeting and/or site inspection. In these meetings, expect to be interviewed and oriented on the details of the franchise. You can also take this chance to ask them any important questions that you might have.
Contract Signing
Finally, you’ll be contacted again if you’re deemed qualified to be a franchisee. Review the contract thoroughly, and sign it if you’re okay with the terms and conditions.
3. Manage your franchise business well
Even with existing guidelines, always strive to continuously improve the business and how you manage it in ways that you can. Enhance your marketing skills. Improve the quality and speed of your service. Keep track of any market or industry trends. Reach out to the franchisor or fellow franchisees for tips and advice. Remember, getting approved for a franchise is just the beginning! Don’t let the journey end so soon by mismanaging your franchise business.
