Franchising was actually founded during difficult times by the Singer Company, finding themselves short of money to expand their business and thought of creating a contractual relationship with prospective business partners and wrote in the sense the first modern Franchise Agreement in 1860. Fast forward to late 1990, franchising was already known as a medium to expand also in the Philippines, however franchising then meant almost exclusive bringing foreign brands to our shores like McDonald’s, Shakey’s and Dunkin Donuts and due to colonial mentality by majority of population, the foreign brands did well.
In 1997 we were hit by the Asian Financial Crisiswherein the Dollar went from 20 Pesos to 40 and 50 Pesos and therefore made the foreign brands too expensive to purchase as master franchise. That gave the local brands the opportunities to shine and become popular to franchise and the local Franchise Industry was born out of the financial crisis.
We had since then several more crisis, a lot of them either due to calamities or political of which the Franchise industry took advantage. As Franchising is the safest way to invest money, Franchises are more popular in crisis times as investors want to place more secure investments. On the other hand, more Companies prefer to spend for a professional franchise development during crisis instead of opening additional company stores, therefore more Franchise opportunities are born during crisis times.
However, what we never had in the past 65 years since Business Format Franchising was established is a pandemic as the present Covid 19 situation. Previous crisis always concentrated to a certain territory but our present now is global and all franchise markets are affected from it.
Again, the pandemic offers opportunities you would not get otherwise: A lot of Franchisors give better conditions or offer lower Franchise Fees to buyers right now as an inducement purchasing a franchise.
The whole process of applying for a franchise moved online. Before you had to beat traffic to visit a Franchisor and maybe even fly to the meetings. Today the same is done via Zoom or any other app available. Therefore, it is easier to apply for a Franchise now than ever before. As a number of businesses are closed due to the Pandemic and leasable spaces widely available, it is also a good time to find a good location at very good rates – if the Landlord understands the situation – and you may get a better deal than ever before.
On the other hand, if you have a business you think of expanding into a Franchise, you may also get a good deal from RK Franchise Consultancy or Gofran Business Consultancy to develop your business into a Franchise for you. It is the best time to prepare for expansion, coz once the business situation goes back to normal, you are ready to fly off to new heights and even during the pandemic you can find Franchisees.
Franchise Expos are an excellent source of finding opportunities and this is as well now online and easier to visit than ever before. FIFA Filipino International Franchise Association held the 4th Iloilo Franchise Expo virtual in September. The 15th Mindanao Franchise Expo Virtual Edition is scheduled at www.mindanaofranchise.com from October 2 to 25 with the Mindanao Franchise Conference on October 16 and 17. The 21st Cebu Franchise Expo Virtual Edition is on www.cebufranchise.com from November 6 to 29 with the Cebu Franchise Conference on November 20 and 21.