Philippine Franchising

Would-be food entrepreneur is torn between starting his own business and franchising. What should he do?

Question: It’s been my dream to start a food business; however I am torn between starting my own, using my own chicken recipes, and franchising a popular fast food brand. What are the things that I should consider to come up with a decision?

That question is very typical: whether to get a franchise or put something of your won. And the first thing you should consider is yourself and your personality.

If you are the type of person who wants to go into business in order to make money to add to your income and you don’t want to start from scratch, then franchising is the best way to go. Their brand is already established, their operations are already manualized, there’s a started operating procedure. All you need to do is find the right location and to market. You don;t hat to start from scratch as far as ll the systems are concerned.

However, if you’re the type of person who wants to experiment, and you have that special recipe, and you want to make it big in that context, because you’re a good cook or you can bake well, then franchising is not for you.

In franchising, you cannot bend or change the products that you have. You will end up doing things on your own, which is not going to be allowed by the franchisor. The franchise, however, may be a good step for you in order to understand the processes and the operations and how to manage a business because it’s already manualized. But it will now allow your creativity and innovativeness to flourish, because you are dictated upon by the mother franchise and you have limited capacity of production

Ask yourself, What’s your personality type and what’s your purpose of you going into this type of business? Is it to make immediate money? Then maybe franchising, being more stable, might be the way to go. Is it to support your itching desire to launch your product?Then setting up your own business might be better for you.

If you do have products in mind, make sure though that your products have been tested and you have been able to establish that there is a good demand for the product. It might happen that your relatives tell you that your products are good or taste great. But when you try them out in the market, the market doesn’t really appreciate them. If you’re going to start your own business make sure that your products have been tested and you have established that there is a good demand for the product. If you do that, then probability of putting up your own business is likely to succeed.

source: entrepreneur philippines

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Water Refilling Company

Aquabest opened for business in Diliman, Quezon City, in June 1997, investing around P1 million in a water purifying machine to provide safe drinking water to the densely populated residential and student lodging area, Aquabest has grown to 665 outlets nationwide. “Aside from our major branch Aquabest Premium, we also have other brands such as Aquabest Plus, Aquaquest, Aquaspree, Alkaline Plus, Mineral Plus and Oxyplus”, says COO and general manager Neil Delgado.

Barely two years after it started operations, Aquabest began franchising its water refilling stations. It drew operational strength from its parent company, GLobal Quality Waters and Environment Solutions Technologies Inc. (GQWEST), which specializes in industrial-and commercial-grade water treatment equipment and services, thus ensuring that all Quabest outlets were well-stocked, well-maintained, and well managed.

Aquabest currently offers a flexible financing scheme to make it easier for prospective franchisees with limitd capital to open a water-refilling outlet. “We have an arrangement with financial institutions like BPI Family Savings, PlantersBank and Bank of Sterling for franchise loan”.

To be a franchisee, Delgado reveals that they look for someone who has experience in management marketing, and someone who will devote time and effort for th business. Aquabest matches this effort exerted by its franchises with assistance in site selection even prior to th approval of one’s franchise application. Once approved, the franchisee needs to attend a series of seminars and training to prepare them for the business. Delgado adds, “Once the store opens, there will be periodic visits from head office in support for operations, marketing and quality assurance. We also have training programs from technical to customer satisfaction. Not to mention the 24/7 technical, customer service assistance hotline”.

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Franchising has been very successful in past few years. No wonder we are seeing a lot of individuals buying franchises. Individuals primarily choose franchising because of minimized risk.

Starting a new business without the proper knowledge, skills and equipment is risky. There is a high percentage a business will fail without proper system intact.

This is where franchising comes in. When buying a franchise, you take advantage of the business system, the use of the brand name and ongoing support from the franchiser.

Your Own Business
A franchised business is your own. A business is the dream of any employee who wants to someday get out of the corporate world. A job certainly gives you financial security but its only limited. Owning your own business gets you more financial security because you control how your business will go.

Business System that Works
Franchisers have failed-forward. They have used failures to make themselves more successful. They have made this mistakes so a franchisee won’t have to.

Being a franchisee you get the advantage of experience. The franchiser because of its experience in running the business has gained considerable knowledge and skills. The franchiser becomes an experienced partner who franchisees can turn to for questions and help.

Branding
Nowadays who wouldn’t know Jollibee, Dunkin Donuts or even 7-Eleven? This is another benefit a franchiser gets when buying a franchise.

He takes the advantage of a well-known brand and attracts customers because of this brand.

Site Selection
Site location is one of the most important factors for a successful retail business. Site selection by the franchiser means someone who knows the business and the environmental factors that would affect the business will have to take a look at your selected location.

Franchising has a lot of advantages. Before you franchise, make sure that you get these benefits.

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Are you thinking of putting up your own business? You often hear, “You should get a franchise”, “It’s much easier to get a franchise” or “Everyone’s buying a franchise. You should too”. I am not here to tell you what to do. I am merely giving information on what franchising is. You will have to decide whether you would get a franchise.
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