Franchising Philippines – How OFWs can invest their hard-earned money

Franchising Philippines | How OFWs can invest their hard-earned money in a Franchise Business in the Philippines | by Homer Nievera

Filipino Overseas Filipino Workers or OFWs are a true pride and joy in the Philippines as they are considered as the country’s modern-day heroes. This is not just because they bring invaluable U.S. Dollars to help the Philippine economy, but also because each Filipino has a family member, close friend, or relative who works abroad.

So, as an OFW, it’s just right that hard-earned dollars must be spent wisely. The usual route taken is through getting a business franchise and operating it as an extension of their money-making programs in time for retirement. This is, of course, apart from other steady income sources such as a farm or an apartment or condo for rent.

In this week’s business tips, we will go through the basics of franchising. It will not be a tell-all discussion as we have limited space you, my dear reader, has little time to read anyway. We can tackle the other key details in a later write-up, ok?

So, let’s go to it, and hope you can learn some tips from this.

#1 What again is Franchising?

Franchises are a terrific way to start a business, but before spending thousands, do your research. Understanding a franchise and how it differs from a chain or independent business is crucial. Owning a franchise is different from starting your own business.

However, starting a franchise is still like starting a business from scratch, except that the franchisor has already tried and tested stuff for you and has proven ways to grow and make money. However, you must gather unforeseen costs and other items before starting.

Franchisees do not legally “own” the franchises they “buy.” They receive a license to run their franchise. Franchisees own their company’s assets and enjoy certain rights as a franchise business owner — if they follow the franchise agreement. Many franchisee organizations can participate in corporate decision-making if the franchisor is willing or opposed to actions they believe will hurt their operation and the brand.

According to the International Franchise Association, franchising distributes goods and services. In a franchise system, the franchisor provides their trademark or trade name and a business system, and the franchisee pays a royalty and frequently an initial fee to use the franchisor’s name and system.

Franchising definitely requires teamwork. For a franchisor to succeed, most franchisees must run profitable franchise units over time. A franchisor-franchisee partnership is essential to brand success. A common franchising phrase is: “Franchising means working for yourself, but not by yourself.”

Many find franchising appealing since it allows them to control their fate and future. Franchises used to allow independent businesspeople to “buy a job” by working in a hotdog stand or auto repair shop every day.

#2 Why get a franchise in the Philippines

Actually, you don’t really need to be an OFW to buy a business franchise. You can get as long as you have money and knowledge of what you want to enter.

But as an OFW, you want to enter a proven business because you prefer to retire well and quietly because you have already worked hard for your income, right?

Starting a franchise benefits from brand recognition, methods, and plans. Franchises do much of the work for you, though like in any business, beginning one is still difficult.

You must add more costs to your budget forecasts since franchisees pay the franchisor a share of their revenues. You can’t change a brand’s standards either. This lack of control might challenge entrepreneurs. But really, it’s still the best route for OFWs wanting to have a stable income from a business with proven results.

#3 How to choose the right franchise

Choosing the franchise business for you is critical. It’s not just all about popularity. For sure, you have witnessed the sprouting of Lechon Manok franchises in the 1990’s to early 200’s. Where are they now? How about the trend in pop-up Do you remember

Conclusion

Starting a franchise is expensive and difficult, therefore it’s crucial to work with a respected parent firm.
You must meet numerous conditions before launching a business. The most flexible approach to distribute goods and services is franchising. Starting a restaurant franchise requires training and support from a franchisor.

Many people dream of starting a business, like you. Buying a franchise has helped hundreds of thousands of Filipinos accomplish that ambition. These entrepreneurs used their franchisors’ brand strength and business expertise to start strong. Keep on researching and studying. Pray for wisdom and guidance.

Read from these resources:

Forbes, Business Daily, FTC, Franchising.com