MANILA – Becoming a franchisor is not a guaranteed success and should be given the same amount of dedication as being a franchisee.
Butz Bartolome, chairman of the Association of Filipino Franchisers Inc., said among the things to consider before franchising your business is profitability, target market and product quality.
“The right way to do it is to make sure your prototype or your model of the business is profitable, and you have identified which kind of services or products you are catering to a segmented market,” he said on ANC’s “Shoptalk.”
He said being a franchisor also requires maintaining a system that is consistent, particularly in customer service.
He also said being able to interact with customers face to face or in social media is key in making a franchise business successful.
Keeping your end of the deal as a franchisor is not enough, Bartolome noted, which is why choosing the right franchisee is just as important.
He said the right franchisee is not just someone willing to invest and shell out money, but someone who is as passionate as the franchisor.
“If the franchisee just wants to invest money, you might as well say goodbye to all your hardships because this is blood, sweat, and tears, a successful business doesn’t happen overnight,” he said.
“Always make sure your brand is being taken cared of,” he added.
On the other hand, before investing in a franchise, franchisees should also see to it that the franchisor is involved and is giving enough support.
The franchisee should also first determine personal likes and dislikes, financial capability, and the franchisor’s set-up.
Bartolome said due diligence is needed to ensure that the brand is reputable.
“Do not just go for the brand but try to investigate,” he said, adding that talking to other franchisees and comparing notes will also be helpful.
Bartolome also highlighted the importance of the business relationship between franchisee and franchisor, saying a good product or service does not guarantee success.
“If you don’t agree with the kind of attitude the franchisor has, you might as well not get into the franchise even if the product or service is OK. Remember, it’s a business relation between you, the owner and the franchisee,” he said.
Bartolome said he expects more franchise businesses to open in the next couple of years in the country, which is among the franchise-friendly countries in the world.