Franchisors expect sales to hit P80.5-B in 2011


Posted at Jul 14 2011 04:50 PM | Updated as of Jul 15 2011 02:13 AM

MANILA, Philippines - Local franchisors belonging to the Association of Filipino Franchisers Incorporated (AFFI) expects 2011 sales to grow by at least 15 percent to P80.5 billion on the back of increasing demand for their products in rural areas.

AFFI officials said the strong fundamentals of the country's economy and increasing development in the countryside are fueling the industry's growth.

"Growth is coming from the expansion in rural areas. The development of new (franchising) concepts is also fueling the industry's growth," said Ricardo Z. Cuna, AFFI Chairman, during a press briefing to launch the 10th Filipino Franchise Show.

The 10th Filipino Franchise Show is organized by AFFI and will be held from July 21 to 24 at the World Trade Center in Pasay City. The show will feature over 300 franchise concepts.

For 2012, AFFI President Paulo Tibig said he expects sales to grow by as much as 25 percent as the industry continues its expansion in the countryside. 

"Franchising’s share of the country's gross domestic product (GDP) is currently around 5 percent and we expect it to continue to grow," said Tibig.

AFFI noted that the local franchising industry is currently dominated by homegrown brands that comprise more than half of the franchisors in the country.

Industry figures showed there is a total of more than 50,000 franchisees in the country which generate a large number of jobs. AFFI alone, officials said, has 110 members which have 6,600 stores nationwide generating 40,000 jobs.

As the industry continues to grow, AFFI officials said they consider franchise scams as a great threat to the industry.

Tibig said the public can be safeguarded by choosing concepts that are affiliated with credible franchising groups like AFFI.

The Department of Trade and Industry chose not to regulate the industry and instead, opted for industry groups to just practice self-regulation.

An order issued by the Bureau of Trade Regulation and Consumer Protection (BTRCP) authorized the setting up of guidelines that prospective franchisees should follow before paying for a franchise concept so they can avoid bogus franchisors.