subject: Why Franchise Businesses Became Popular [print this page] What made franchise businesses popular in the Philippines? Franchise businesses of today are far from what it was in the past. According to many experts, most franchise businesses available in the past were large businesses such as fast-food restaurants, convenient stores, shops, groceries, bakeries, and many more. Popular franchise businesses today, however, are comprised of small businesses such as food-cart and food-stall businesses.
Why Franchise Businesses became Popular
The reason why franchise businesses became popular in the Philippines is because of the many new
Franchising business Philippines today that can be easily acquired without the kinds of requirements that larger franchise businesses require as well as the amount of franchising costs.
Lesser Expensive Franchise Costs
One reason why franchise businesses became popular, according to many experts, is because of its relatively cheaper franchising cost compared to the cost of larger franchise businesses such as a fast-food restaurant.
According to many experts, the cost of a single franchised convenient store can go up to more than 1 million Pesos. And thats just its brand name as well as its equipment, construction cost as well as the cost of its location is of the franchisees expense, which can also be around more than a million.
This is the reason why most Filipinos which were able to take advantage of the opportunities of owning a franchise business were wealthy Filipinos. This was also the reason why franchise businesses were not as popular as it is today.
Popular franchise businesses today are small businesses such as food-carts and food-stall businesses. Part of the reason that made these types of franchise business in the Philippines popular is because of its size, which is smaller. Smaller means lesser expensive franchising cost, and according to many business experts, the cost of a single food-cart or food-stall can go as low as 20,000 Philippine Pesos.
In addition to that, the location which these types of franchise businesses requires are not as large, and that it doesnt normally involves any construction cost, making this kinds of businesses popular for the middle-class of society.
Simpler to Manage
Another reason why small franchise businesses such as food-cart and food-stall businesses became popular is because it doesnt usually require its franchisees to have acquired experience in a managerial position or any degree in business management. This is the reason why food-cart and food-stall businesses quickly grew across the Philippine market, as well as among many Filipinos who seeks to start a business for their own.
