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FRANCHISING…An Option to become an Entrepreneur.
By:
Association of Filipino Franchisers, Inc. (AFFI)
www.affi.com.ph
www.affiphilippines.mobiPromoting World- Class Filipino Entrepreneurs
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Raffy G. Canare, TMNational Executive Director
Association of Filipino Franchisers, Inc. (AFFI)
www.affi.com.ph
www.affiphilippines.mobiPromoting World- Class Filipino Entrepreneurs
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A HAFFI FAMILYThe AFFI NATIONAL BOARD of DIRECTORS
www.affi.com.ph
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Eat Bulaga NEW AFFI MEMBER
www.affi.com.ph
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The AFFI Secretariat Office takes charge of managing the policies and projects of the Association of Filipino Franchisers Inc.
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Association of Filipino Franchisers, Inc.
The Association of the Filipino Franchisers Inc. (AFFI) is the Philippines’ prime trade organization committed to promoting responsible micro small medium enterprise businesses through franchising. It is consist of Filipino corporate presidents, CEOs, and prominent businessmen who recognize the competitive potential of the local franchising industry in the global market.
www.affi.com.ph(02) 654.03.45 | +639062456045
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Association of Filipino Franchisers, Inc.
Serves as the governing body that safeguards the interest of its members and innovates ways to further its advocacies.
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Exploratory Questions
Do you want to go into NeGOsyo?
Do you have FUND?
How much are you willing to invest?
Where to get FUND?
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Seize ‘d Day!
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Promoting World-Class Filipino Entrepreneurs!
Raffy G. Canare, Executive Director
www.affi.com.ph(02) 654.03.45 | +639062456045
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www.affi.com.ph(02) 654.03.45 | +639062456045
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www.affi.com.ph(02) 654.03.45 | +639062456045
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www.affi.com.ph(02) 654.03.45 | +639062456045
AFFI Center for Franchising
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What is Franchising?
- Is a business practice that an individual can use; a Business System that is proven successful.
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www.affi.com.ph(02) 654.03.45 | +639062456045
“A franchise operation is a contractual relationship between the franchisor and franchisee in which the franchisor offers or is obliged to maintain a continuing interest in the business of the franchisee in such areas as know-how and training; wherein the franchisee operates under a common trade name, format and/or procedure owned or controlled by the franchisor, and in which the franchisee has or will make a substantial capital investment in his business from his own resources.”
- Definition by International Franchise Association
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Why Franchise?- According to study, 90% Success Rate- Proven Brands- With Established Business System Operation
- Much Better than Traditional Business/ Establishment.
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Basic Terminologies:Franchiser: The person who developed and owned the Business System.
Franchisee: The person who wishes to adapt, pay the system under a registered trade mark and brand following all the policies and conditions set by the Franchiser stated in the Franchise Manual.
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Basic Terminologies:
Franchise Manual: The Business Operations Bible
Franchise Contract: The Document that states the conditions and agreement both accepted by the Franchiser and Franchisee.
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3 Kinds of Franchising
1. Product Distribution2. Business Format Franchising3. Management Franchise
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1. Product Distribution
i. Supplier- Dealer Relationshipsii. Sells the Franchiser’s Products
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1. Product DistributionEx:
www.affi.com.ph(02) 654.03.45 | +639062456045
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2. Business Format FranchiseIntegration of FULL Business Operations and System that includes but are not limited to:
Operations Business Development
Marketing Sales RetailingLogistics Supply Chain
Managementwww.affi.com.ph
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2. Business Format FranchiseEx:
www.affi.com.ph(02) 654.03.45 | +639062456045
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3. Management FranchiseThe FRANCHISEE provides management service and expertise using the Trademark and Business Name of the Franchiser.
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3. Management FranchiseEx:
www.affi.com.ph(02) 654.03.45 | +639062456045
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Franchise Investment Price Range:
Typical Food Cart: P 20k to P 300K
Kiosk: P 100K to P 700K
Services: P 300K to P 10M+
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Investment Inclusions:
Franchise FeeRoyalty FeeInitial InventoryRenovationsMiscellaneous, Legals Revolving FundRentals and Salaries
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TRADITIONAL FRANCHISE
BRANDING
You have to create and start your own
brand.
Established and known in major cities
Comparative Illustration
VS
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TRADITIONAL FRANCHISE
Management
Hand’s On in every detail.
You will be supervised and assist by the Franchisee.
Comparative Illustration
VS
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TRADITIONAL FRANCHISE
Operation / System
Start from Scratch. Design your own
You just need to follow the Franchise Manual.
Comparative Illustration
VS
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TRADITIONAL FRANCHISE
Supplies, Machines and Inventory
Research your own supplies. Try and Test.
Franchiser will provide everything. Just pay them.Not allowed to purchase in
any supplier. Quality Products will be provided
Comparative Illustration
VS
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TRADITIONAL FRANCHISE
Permits, Legal and Miscellaneous
Work it on your own. Full Support of the Franchiser.
Comparative Illustration
VS
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TRADITIONAL FRANCHISE
Financing
For start up there is less Funding Opportunity from Financing Firms since the
business couldn’t show any previous income statement
The Franchiser can offer in- house financing or can
recommend and guarantee in any Funding Firm.
Comparative Illustration
VS
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TRADITIONAL FRANCHISE
Marketing
You have to fund your own marketing expenses. Limited marketing and promotional
exposure
Depends on the Franchise Brand. Known brands has a great mileage of marketing
exposure.
Comparative Illustration
VS
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TRADITIONAL FRANCHISE
Return of Investments
Not guaranteed
Not guaranteed, but one can base in the history of other Franchisee or may refer to
the feasibility study made by the Franchiser.
Comparative Illustration
VS
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TRADITIONAL FRANCHISE
Support and Assistance
You can not ask anyone to help you since the business is
solely yours….100% Supported
Comparative Illustration
VS
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TRADITIONAL FRANCHISE
Innovation
It takes time and investments to innovate your products.
Every Franchiser has a Research and Development
Department who handles the development of products and
services.
Comparative Illustration
VS
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TRADITIONAL FRANCHISE
Location
Get your own place
You can recommend or the Franchiser can provide. Most
of the site provided by Franchiser have passed
through a study.
Comparative Illustration
VS
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TRADITIONAL FRANCHISE
Business Retirement
When you close… Its closed. There is a less chance for you to
resell your business to any investor since the primary reason you closed the business is due to
unprofitability.
The Franchiser can resell the site and business to a new
interested franchisee.
Comparative Illustration
VS
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Are you ready to Franchise?
The JOY of OBEDIENCE is the SECRET of Franchising
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Due Diligence
Self Examination
What drives you?Financial Capacity?Passion?
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Due Diligence
Make a list
Industry? Food, Retail, Services?
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Due Diligence
Study& Survey
Know the products?Ask the existing franchisee.
Check the market.
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Due Diligence
Interact
Who is the Franchiser?Company ProfileSet a meeting
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Due Diligence
Senses
TryTestSee
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Key Factors
Skills
Experience
Capital
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Summary of Important Details
BrandInvestment
Franchiser
Market
Legal
Support
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10 Identifications of a Legitimate Franchise Company
Legal papers and permits from the government such as DTI for Sole Proprietor/SEC for Partnership and Corporation, updated Mayor’s Permit, local permits (Sanitary, Building, Occupancy, et.al.), BIR Registration, Certification from the governing Government Agency of the business operations (BFAD and DOH for food, TESDA, DEPED, DSWD and CHED for school and training) and Registration from the Intellectual Property Office are consistent and registered to the company name and to its authorized officer.
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1
L
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Engaging partnership between franchiser and franchisee transpires.
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10 Identifications of a Legitimate Franchise
Company
2
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Good business operation support like logistics and marketing management is extended to the franchisee.
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10 Identifications of a Legitimate Franchise
Company
3
G
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Imperative details of the franchise agreement/contract are readily available for review.
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10 Identifications of a Legitimate Franchise
Company
4
I
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Two or more owned outlets and at least two franchise outlets are gleaned from the company record.
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10 Identifications of a Legitimate Franchise
Company
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Important public documents like SEC Registration, Articles of Incorporation and Audited Financial Statements can easily be retrieved.
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10 Identifications of a Legitimate Franchise
Company
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I
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Membership for the Association of Filipino Franchisers Inc. (AFFI) signifies legitimacy of the brand.
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10 Identifications of a Legitimate Franchise
Company
7
M
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Accredited list of suppliers are patronized to ensure the quality of the products of the franchise brand.
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10 Identifications of a Legitimate Franchise
Company
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A
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Two or more years of operating under the same company name weeds out the fly by night businesses from the legitimate ones.
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10 Identifications of a Legitimate Franchise
Company
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T
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Exact office location is used for business transactions.
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10 Identifications of a Legitimate Franchise
Company
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www.affi.com.ph(02) 654.03.45 | +639062456045
Avoid Franchise Scam
1. Unknown Brand2. Legal Papers3. Unseen Head4. Marketing Strategy- MLM5. Not AFFIliated6. Too cheap… Too Expensive7. Check the Virus… Ask.
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www.affi.com.ph(02) 654.03.45 | +639062456045
Verify if a certain company is Legitimate
CALL:
+63 2 654 o345+ 63 906 245 6045
[email protected]. 751.3330
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www.affi.com.ph(02) 654.03.45 | +639062456045
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www.affi.com.ph(02) 654.03.45 | +639062456045
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AFFIMEMBERS
www.affi.com.ph
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www.aquabest.com.ph
www.affi.com.ph
www.aheadph.comwww.aquasuisse.com
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www.affi.com.ph
www.bigappleexpressspa.com
www.bibingkinitan.com
www.bubbatealicious.com
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www.affi.com.ph
www.bluewaterspa.comwww.binalot.com www.bioessence.ph
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www.affi.com.ph
www.chicharific.com
www.crystalclear.com.ph
www.botoyslitson.com
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www.affi.com.ph
www.freskagroup.com
www.fiorgelato.com
www.luckyrictrading.com
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www.affi.com.ph
www.gotoking.com.ph
www.galileoenrichmentcenter.com
www.fruitasgroup.com
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www.affi.com.ph
www.ink.com.ph www.sweetcorner.comwww.japokresto.com
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www.marina.com
www.affi.com.ph
www.maginasalphilippines.com
www.lotsapizza.com.ph
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www.mr.softyicecream.com
www.affi.com.ph
www.minuteburger.com
www.ministop.com
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www.mr.softyicecream.com
www.affi.com.ph
www.minuteburger.com
www.ministop.com
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www.prgashaus.com
www.affi.com.ph
www.msgni.comwww.potatocorner.com
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www.reyesbarbecue.com
www.affi.com.ph
www.rbx.com.ph
www.ptccom.com.ph
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www.affi.com.ph
www.shanghaisiomai.com
www.reyeshaircutters.com www.seaoil.com.ph
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www.tinhaodimsum.com
www.affi.com.ph
www.thegenericspharmacy.com.ph
www.s-mics.com
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www.chiccodicaffe.ph
www.affi.com.ph
www.ysa.com.ph
www.vcargo.com.ph
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www.weservegenerics.com
www.affi.com.ph
www.angelspizza.com.phwww.ga2pharma.com
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www.gmbfranservice.biz
www.affi.com.ph
www.generika.com.phwww.figarocoffe.com
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www.juliesbakeshop.com.ph
www.affi.com.ph
www.jmpeanutworld.com
www.happyhausdoughnut.com
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www.platowraps.com.ph
www.affi.com.ph
www.aquabest.com.phwww.mayon.com.ph
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www.affi.com.ph
www.s-mics.comwww.yoyoholidays.com www.aquabest.com.ph
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www.affi.com.ph(02) 654.03.45 | +639062456045
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www.affi.com.ph(02) 654.03.45 | +639062456045
afficenterforfranchising
"It's not who I am underneath but what I do
that defines me.“
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RAFFY G. CANARE
Here’s my number, Call me maybe:
0922. 88. R7A2F3F3I4
raffygcanare
Raffy G. Canare, TMExecutive Director, AFFI
Business Opportunities are visible to those who can see possibilities even in adversities. Maraming Salamat po
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www.affi.com.ph(02) 654.03.45 | +639062456045
afficenterforfranchising
www.affiphilippines.mobiPromoting World- Class Filipino Entrepreneurs