How to determine if your business if “franchisable” in the Philippines?

Let us begin identifying your business tools, capabilities, and current status. 

We begin by checking how many branches you have? franchise buyers usually wanted to know if your business can sustain in the long run. To our survey usually, they are looking for 4 to 5 company-owned or sole proprietor owned business branches. 

In 4 to 5 business owned branches, the franchisee will check the following, A. Can you sustain the business process? this includes not limited to product deliveries, marketing strategies, and operational support. In product deliveries, you need to identify what is your mean to transport the goods to their store or location. How many times you can deliver in a week? What will you do if there is an out of stock? Marketing Strategy you need to ensure that you outlined the promotions and events that you have for the business “again don’t limit your presentation by saying you’ll use social media. Next Operational Support, what are the dos and don’ts of the business franchise? Do you have uniforms? How to recruit the right person? Do you support them in their Grand Opening? etc. 

If you think that you can do all the things above then your business “might be franchisable”. Here is the next thing to work on. Are you financially capable? how much do you need for implementation?  we suggest to come up with at least five hundred thousand pesos  (Php 500,000.00).  and an accountant because you need to secure funds for A. Operational Expenses, this includes your rent, utilities, internet, manpower salaries, etc. B. Funds for your stocks unless you already have terms with your suppliers C. Logistic Cost either you have your own cars/trucks for deliveries use or you’ll use third party movers like lalamove, transportify,  grab, ninja van, etc. D.  Marketing Expense this is the part the business owners forget to plan, analyze and strategize their expenses. Remember not all marketing expenses are converted to sales, they are either paid ads to add likes to your facebook pages or Sintra boards for your store promos. E. Tools and Equipment so why fund this? you need to ensure that your staff is equipped with the right tools like Point of Sale, ERP (enterprise resource planning tool) this could help you ensure that every single sale is and your inventory are all recorded in the system. 

Manpower, if you are financially capable then that’s good but we need more, Do you have a team that will support the business? These employees will do encoding at the back end, do an audit at the store, prepare your deliveries and etc. I understand that the entire family might help you with this business but you need experts on other things that you are not good at. The heart of the business is it’s people so hiring the right skill set would make your business flourish. Having said that, your training must be fun, easy to understand, do mock orders, emphasize health and sanitation.  

Do you have a location/site finder? this is the least that you need but these people will ensure that your location is profitable the foot traffic is high and your business can do marketing like flyering, do promos, events and other marketing activities

You are almost there, you need to consult a lawyer or accountant for your documentation. Everything you have in your business must be documented to protect your business from any possible legal situation. So what are the things you need to prepare A. Franchise Agreement,  this is to document whatever you agreed during a business presentation.  B. Financial Statement,  you need to divulge this but optional for some cases. C. Operations Manual, though this can be done by your trainer, you need to ensure that this follows safety and sanitation standards. D. Permits and Licenses ensure to get all requirements for your business to operate to avoid penalties and other cases. E. Government Benefits make sure to register and pay necessary benefits for you and your employees. F. Insurance could save either your business or yourself for any possible knock-on-wood situation.  Lastly, even if you register your business doesn’t mean you have the copyright for your brand name. You need to register it at the Intellectual Property Office of the Philippines. 

Thank You, I think we have given you enough information on how to start your franchising if you need more assistance you may contact  Master En Vee for business consultation and other services available.