Franchising in the Philippines

What is a franchise?

• A system of distribution through which the owner of a product approaches independent businessmen.

• A type of business that does not require any marketing.

• A method of selling products without any control from the franchisor.

• A way to operate a business without any fees.

What does the franchisor provide to the franchisee?

• Equipment and brand name

• Only the product to sell

• No support at all

• A fixed salary

What is the main concept of franchising?

Answer explanation

The main concept of franchising involves a business model where a franchisor grants the right to use its brand and business system to a franchisee, allowing for expansion while maintaining brand consistency.

What is the significance of the term 'franchise'?

Answer explanation

The term 'franchise' signifies a business model where a franchisor grants the right to use its brand and sell its products to a franchisee, allowing for expansion and brand consistency across locations.

What percentage of the franchising sector in the Philippines is made up of food brands?

• 41%

• 32%

• 27%

• 50%

Are all businesses be offered as a franchise?

• Yes

• No

What types of businesses are not considered replicable?

• Creative business

• Technical business

• Both

What is a Product or Distribution Franchise?

• A product manufactured by the franchisor is sold to a franchisee

• A franchisee sells the product under the franchisor's trademark

• Both

What is the most widely used form of franchising?

• Product or Distribution Franchise

• Manufacturing Franchise

• Business format franchising

What are the advantages of franchising?

• Independence for franchisees

• Easier expansion

• Both