Benefits of Buying a Franchise

Earn what you are worth

Thousand of franchise owner report they were handicapped in their corporate careers by Company policies and Superiors that put a cap on their earning. When you own your own Company, your efforts are rewarded and your personal income shows it!

Build equity

Financial strength comes to those who succeed in running a business. Approximately 95% of all millionaires in the Philippines own their own business. If great wealth is one of your goals, entrepreneurship is the answer.

Satisfaction of achievement

Much business owner report that seeing their actions turned into realty without stagnating for month in committee meetings as so oft happens in big companies is a major reward of owning their business.

Choose your own job description

When you’re the owner, you can delegate certain aspects of the business to others and create a job description that suits your personality, skills and interests. Naturally, the industry you choose and the size of your operation will affect your flexibility in this area.

Control your future

Business owners live the scripture “you reap what you sow”. You can manage your work schedule against family needs and recreation – if you’re willing to share some profits with additional employees.

Never transferred, laid off or fired

Major companies are notorious for relocating their employees and downsizing their staff at the most inopportune times! When you run your company, you’ll decide when and where to operate.

Why a franchise?

There are many reasons why franchising is the best type of operation for the majority of first time business owners. Most revolve around the increased probability that the business will succeed and provide profits to the owner in a shorter time frame than an independent business. This allows the owner to address her/his personal goals both financially and personally.

Lower costs than an existing business

When buying an existing Company, you often don’t know what you are buying or if the price is right or the existing business profitable. Starting a franchise is almost always less expensive.

Less risk than an independent start-up

One spends up to 5 years in an industry before considering owning a venture in that field. Buying a franchise eliminates this need and puts you on the road to success quickly  

Gain advice on site selection, design, operation, capitalization and marketing

A good Franchisor provides instruction and support on all aspects of running a business in its industry.

Receive a proven profitable system for doing business

When you’ve had a chance to talk to other Franchisees, you’ll recognize how important it is to have a system to follow for your venture. This plan is easily worth a few hundred of thousands of Pesos or more.

Benefit from quality research and development

Most small business owner are just too busy making money to research the future trends in the industry and develop new products or services to meet the needs of their customers. A Franchisor will always be searching for ways to make its network more successful.

Access to trained support personnel

Your royalties and advertising fees provide regular improvements in the Franchisor’s systems and these are provided to you for implementation in your venture.

Quicker start-up than independents

A proper plan outpaces an independent’s hit and miss operation almost every time. Looking at just independents that succeed – you’ll find that franchises grow quicker, reach break-even sooner and succeed more regularly than others in the same industry as depicted in the accompanying chart.

Benefits of Getting a Business Franchising

Lower Risks. Most business experts agree that a franchise operation has a lower risk of failure than an independent business. The statistics on this vary depending on the definition of failure. Yet, whatever statistics are used, they consistently suggest that a franchise is more likely to succeed than are independent businesses.

Established product or service. A franchisor offers a product or service that has sold successfully. An independent business is based on both an untried idea and operation. A great factor that will help you predict the potential success of a franchise is the length of time that the franchisor have been in successful operation.

Experience of franchisor. The experience of the franchisor’s management team increases the potential for success.

Group purchasing power. It is often possible to obtain lower-cost goods and supplies through the franchisor. Lower costs result from the group purchasing power of all franchises. To protect this benefit, most franchise agreements restrict the franchisee from purchasing goods and supplies through other sources.

Name recognition. Established franchisors can offer national or regional name recognition. This may not be true with a new franchisor. However, a benefit of starting with a new franchisor is the potential to grow as its business and name recognition grow.

Efficiency in operation. Franchisors discover operating and management efficiencies that benefit new franchisees. Operational standards set in place by the franchisor also control quality and uniformity among franchisees.

Management assistance. A franchisor provides management assistance to a franchisee. This includes accounting procedures, personnel management, facility management, etc. An individual with experience in these areas may not be familiar with how to apply them in a new business. The franchisor helps a franchisee overcome this lack of experience.

Start-up assistance. The most difficult aspect of a new business is its start-up. Few experienced managers know about how to set up a new business because they only do it a few times. However, a franchisor has a great deal of experience accumulated from helping its franchisees with start-up. This experience will help reduce mistakes that are costly in both money and time.

Marketing assistance. A franchisor typically offers several marketing advantages. The franchisor can prepare and pay for the development of professional advertising campaigns. Regional or national marketing done by the franchisor benefits all franchisees. In addition, the franchisor can provide advice about how to develop effective marketing programs for a local area. This benefit usually has a cost because many franchisors require franchisees to contribute a percentage of their gross income to a co-operative marketing fund.

Proven system of operation. An attractive feature of most franchises is that they have a proven system of operation. This system has been developed and refined by the franchisor. A franchisor with many franchisees will typically have a highly refined system based on the entire experience of all these operations. 

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" I got my return of investment just for five months, its an overwhelming success!" -Franchisee Hong Kong Style Noodles & Dimsum…

San Pedro Laguna