PHILIPPINE Franchising Association (PFA) president Alan Escalona said local brands now are dominating the franchise sector since the establishment of the association in 1995.
“Before the founding of the PFA in 1995 the Philippine franchising sector was dominated by foreign companies and big businesses. The sector hardly made a dent in the nation's economy and the peoples’ lives,” Escalona said in his opening remarks at the Franchising para sa Davao Expo at the Abreeza Mall on May 12.
He said at present almost 70 percent of franchise brands in the Philippines are homegrown brands. The PFA has some 250 members at present but each member may have as much as a dozen brands. Nearly 20 brands that started as local brands already have international presence.
Escalona also said franchising serves as an enabling agent for micro, small, and medium enterprises (MSMEs) development.
He said franchising provides MSMEs opportunity to grow their businesses even with limited resources and it is also an effective vehicle for entrepreneurship because of its high success rate.
“Franchising is the best way to propagate any business now because you are using the same secret and success rate of the exisiting company,” Escalona said.
He said through the promotion of franchising, PFA hopes that the sector will continue to take part in the country's economic development.
“Franchising can be a powerful instrument in creating businesses and jobs which are instrumental in inclusive growth,” Escalona said.
He said they are holding roadshows and expos to promote franchising. They have also established offices in key cities in the country like Davao City to be able to cater to more entrepreneurs or businesses who wish to venture intor franchising.
“Franchising has become an agent in stimulating economic activity in the regions. The expo is part of our efforts to sustain the role of franchising in regional development. Franchising plays a greater role in opening opportunities in the regions,” Escalona said.