Franchising has become a popular
business model in the Philippines, offering entrepreneurs the opportunity to
establish their own business while benefiting from an established brand and
support system. While there are no fixed steps for franchising a business in
the Philippines, here are some common processes you can expect when considering
a franchise opportunity.
Step 1 – Submit Your Application
The first step in the franchising
process is to express your interest in franchising by submitting an
application. Some franchises may have application forms available for download
on their website, while others may require you to approach a franchise representative
in person. Typically, you will need to provide a Letter of Intent to
franchise, stating your intention and interest in the franchise opportunity.
Once your application is received, an initial screening or interview may be
conducted to assess your suitability as a potential franchisee.
Step 2 – Submit Requirements
Each franchise may have its own
specific set of requirements, but there are some common documents that are
usually requested. These may include:
- Letter of Intent to franchise: This formal letter expresses your intent to enter into a franchise agreement with the company.
- Proposed site plan: You will need to provide a vicinity map of the location where you plan to open the franchise, along with photos of the area.
- Contract of Lease: If you are planning to rent a space for your franchise, you may be required to provide the contract of lease.
- Government IDs: Valid government-issued identification cards are typically required to verify your identity.
- Resume: A comprehensive resume highlighting your relevant experience and qualifications may be requested.
Step 3 – Interview
After submitting your application
and required documents, you will likely be called in for a formal interview
with a franchise representative. During the interview, you should be prepared
to discuss your business plan, including your strategies for success and how
you plan to manage the franchise. Additionally, you may be asked to provide
proof of your liquid capital or net worth to demonstrate your financial
capacity to invest in the franchise.
Step 4 – Site Inspection
In some cases, the franchise
development team may request to inspect the proposed site where you intend to
open the franchise. This site inspection allows them to assess the suitability
of the location and ensure it aligns with the brand's requirements and
standards. The franchise team will consider factors such as visibility, foot
traffic, accessibility, and potential market demand when evaluating the site.
Step 5 – Contract Signing
Once both parties have
successfully gone through the application, interview, and site inspection
processes, and all terms have been mutually agreed upon, you will proceed to
sign the franchise agreement. This contract solidifies the
franchisor-franchisee relationship, outlining the rights, obligations, and
responsibilities of both parties. The contract will also detail the specific
fees involved, including the initial franchise fee, ongoing royalties, and any
other financial obligations. It is essential to thoroughly review and understand
the terms and conditions before signing the contract.
Step 6 – Store Construction and Training
After the contract signing, the
process of setting up your franchise will begin. This typically involves store
construction or setup, where the franchisee prepares the physical space
according to the franchisor's guidelines and specifications. Simultaneously,
you will undergo training as a franchisee, where you will learn about the
business operations, management procedures, customer service standards, and any
other necessary skills to run the franchise successfully. Additionally, staff
training may also be conducted to ensure that your employees are equipped with
the knowledge and skills required to deliver the brand's quality and standards.
Step 7 – Opening
Once the store construction is
completed, all necessary equipment has been purchased, and both you and your
staff have received the required training, your franchise is ready to open its
doors to the public. This grand opening marks the beginning of your journey as
a franchisee, and it is crucial to ensure that all aspects of the business,
from operations to customer service, are executed according to the brand's
guidelines and standards.
Remember that the franchising
process may vary depending on the specific franchise you are interested in. It
is essential to thoroughly research and understand the requirements and
processes of the particular franchise opportunity you wish to pursue. Engaging
with reputable franchise consultants and seeking legal advice can also provide
valuable guidance throughout the franchising journey in the Philippines.
Franchise Flow is a cutting-edge web-based system created by LYB I.T Solutions, aimed at optimizing and boosting the operational effectiveness of both franchisors and franchisees. This comprehensive platform offers a vast array of capabilities that enable franchise owners to make well-informed choices, boost their revenue, and enhance their business performance by streamlining sales, inventory, and financial management.