THE Association of Filipino Franchisers Inc.(AFFI) aims to attract more aspiring Filipino entrepreneurs into its fold, especially the millennials and generation Z, to venture into business as franchisees of existing tried-and-tested businesses or by coming up with innovative business concepts.
“We formed a partnership with the Junior Philippine Institute of Accountants [JPIA] to entice younger people to join the franchising business,” AFFI Chairman Eric Caeg said during a recent media interview at the launch of the 17th Franchise and Business Expo with the theme, “Galing ng Pinoy: Local is the new Focal,” to be held at the World Trade Center from February 1 to 3, 2019.
Caeg also said the group continues to mentor micro businesses and encourage overseas Filipino workers and even those who are employed locally to give franchising a try as it does not require a huge capital, easy to operate and is less risky.
Meanwhile, Joyce Uy, AFFI president, said the group hopes to encourage more Filipinos to become entrepreneurs by introducing innovative business concepts as this is one way a franchised business can survive, grow and excel amid competition.
AFFI President Jorge Noel Wieneke II , on the other hand, said that many people only think of the “beauty side” of the business when the reality is it is hard to go into business. “You have to master yourself and persevere,” he stressed.
If someone wants to go into franchising, Wieneke advised that the individual must be a good follower because the franchising system has a set of rules to follow. “If you are a good follower, franchising is for you,” he said.
However, Wieneke said, franchising gives independence and flexibility because unlike the typical 8 a.m. to 5 p.m. job, a franchise owner has the freedom to decide on his plan of action in running the business and the flexibility to work around his own schedule.
According to government data, 70 percent of the total work force belongs to the micro, small and medium enterprises sector. He said the government provides financial and technical assistance to this sector. There are also some banks that devote windows specifically for MSME.
He said a franchisee is given strong support when starting a business. Moreover, the franchisor will provide trainings to the franchisee in running the business. The franchisor’s proven system will serve as a guide in managing the franchise.
Wieneke cautioned the public who want to go into franchising not to fall into people offering buy one, take one franchises worth P25,000 as this type of franchise does not have a backup and long-term plan. “People behind that business are not genuine franchisees but just want to sell franchises,” he said.
“At this point, nobody is saying it is illegal but the challenge is their sustainability,” he added.
When a person plans to go into franchising, Wieneke said, he or she must first consider if the brand is strong and earning.
AFFI said they have 221 members composed of more than 16,000 outlets, 36 percent of which are company owned and 64 percent under franchise. These businesses have remained in business for an average of 10 years, providing employment to more than 96, 000 Filipinos.
More than 300 exhibitors, from food retailers to service providers, are expected to grace the event.