Franchising had become a popular trend in the Philippines due to the many new franchise businesses available in the market today that can offer significantly lower franchising cost compared to what franchise businesses in the past. These kinds of popular are food-cart and food-stall businesses.
Popularity of Food-Cart and Food-Stall Businesses
Food-cart and food-stall businesses had become wide-spread all over the Philippines today. The reason why is because of franchising businesses which had promoted these types of small businesses to average Filipinos.
The advantage that made these types of franchise businesses popular, according to many experts, is because of its affordability, making it easier for the average Filipino to start their own profitable business.
Simplicity of Food-Cart Businesses
Part of the reason that made food-cart and food-stall simple, other than its relatively lesser expensive franchising cost, is its requirements.
Unlike larger franchise business, such as convenient stores or restaurants, a food-cart and food-stall businesses normally requires smaller investments in terms of location and space.
The simplicity of these businesses made it easier for Filipinos to manage their own businesses, even though they lack the necessary knowledge in handling a business.
But what made these small businesses even more popular, according to many experts, is that it doesnt necessarily require franchisees to have attained experience in a managerial position or have acquired a degree in business administration.
Contribution of Franchise Industry to the Economic Growth of the Philippines
The popularity of food-cart and food-stall businesses in the Philippines had largely contributed to the growth of the franchising industry of the Philippines. However, other than the growth of the sector, franchise businesses had also contributed to the growth of the Philippine Economy.
The PFA, or the Philippine Franchise Association, is the pioneer and biggest franchise association in the Philippines. It is the voluntary self-regulating governing body for franchising in the country with 180 franchisors and allied members nationwide.
According to them, the growth of the franchise industry had also contributed to the economic growth of the Philippines. This includes the creation of thousands of enterprises and generation of hundreds of thousands of jobs, making franchising an important tool in the countrys economic growth. Additionally, the franchise industry had also contributed to the growth of the Philippines as the franchise hub of Asia when it comes to the development of franchise concepts.