Local Franchise Companies
You might have already know, the pioneer companies in the Philippines are Jollibee, Max Restaurant, Andoks, Baliwag, Greenwich and there are more proliferating SME's that some Filipino investors created. Most franchise companies targets the food industry for the reason that it captures all ages, different personalities and class. Everybody eats and the food and beverage business will always be a profitable franchise investment.
The most famous international franchise that penetrated the Philippine market is McDonalds. It can be found in several cities and malls in Luzon, Visayas and in Mindanao. This foreign fast food really catches millions and millions of people to consume their burgers, sundaes and french fries. The other company is Starbucks; a high end concept for classy individuals and seems to please the eyes of the higher class people but of course it is catering the public. The company also originated in the United States of America just like McDonald's.
Totally different concept from burgers and fries, Starbucks focuses on frappes, coffee and pastries. It does not serve rice or any other heavy meals.
Sample Types of Franchise Businesses
Automobile - Toyota, Hyundai and other car manufacturers are also distributed by a franchise system which requires a big capital to start to be a partner of a global brand.
Tech Gadgets - smartphones, tablets, phablets, led tv and more. these are the latest trend in our world today and everyone seems to like the innovative ease of access these gadgets bring.
Food and Beverages - maybe the most scattered franchise system in the Philippines. Lechon, siomai, ice cream, japanese cakes, coffee, waffle are just among the list of food franchising. There are a lot of stalls in malls for you to observe.
What is a Royalty Fee?
A Royalty fee acts as a right that needs to complied by a franchisee. The franchising office is a contractual base which is an agreement of 3 to 6 years depending on what is written. An individual agrees clearly that he is using an intellectual property rights. This includes the company trade name, logo, business system, engineered designs, marketing and advertising, man power services, accounting, recipe etc.
Conclusion in putting up a business
Putting up a business is not a joke and risk will always be there. You can lessen the risk or sugal by preparing and planning. Research and study the business or the franchise products. Compute for the probabilities of all the expenses versus the return of investment or income that you will receive after the operation. So the way to start a business is to be smart, have a capital and take your shot to be successful in your new career as an owner of the company. Remember that anything can happen so take the risk it is your choice.