Everyday we can see different branches of Jollibee, McDonald, Mang Inasal, Potato Corner, Bibingkinitan and other foodcarts and restaurants not only in malls but also in different independent locations all over the Metropolis and major cities and provinces.
What is the common denominator among the above mentioned companies? The answer is, they are into franchising.
According to Investopedia, franchising is " A type of license that a party (franchisee) acquires to allow them to have access to a business's (the franchisor) proprietary knowledge, processes and trademarks in order to allow the party to sell a product or provide a service under the business's name. In exchange for gaining the franchise, the franchisee usually pays the franchisor initial start-up and annual licensing fees."
If an individual is going to start a new business, he has to learn a lot of things at it will probably entail higher organizational and learning costs.
He has to learn on his own the operational, financial, accounting and purchasing aspects of business whereas if he goes into franchising, most likely 80% of these areas will be mutually discussed and transferred by the franchisor. This is what we call, technology transfer."
Advantages of franchising:
These are some of the advantages of franchising:
* Established and recognized business name
* Business Support on areas of operations and finance
* Local and National Advertising and Promotion
* Economies of scale
* Business Recall
* Training on how to run the franchise business
It is glad to note that franchising is pump priming the Philippine economy.
The small and medium enterprises (SMEs) who are now into franchising are the backbone of our nation aside from the remittances coming from the Overseas Filipino Workers (OFWs).
Most of the times, the OFWs are the ones who are venturing into a franchise business.
Filipinos are swiftly changing their viewpoint of business.
The traditional way of earning money was to become an employee after graduation. Nowadays, students are more aggressive and more enterprising. They know that employment will only give them salaries that will not be enough to cover their daily needs. They realize that starting their own business will be the key to financial success. These student entrepreneurs wanted to be called owners of business rather than mere employees. Their entry point sometimes is through franchising.
The advent of modern technology adds more color to this business concept. Franchising companies are tapping the social media ( Facebook, Twitter, You Tube) to promote their brands. You can also see the prominent franchising entities during expos and exhibits.
What is the common denominator among the above mentioned companies? The answer is, they are into franchising.
According to Investopedia, franchising is " A type of license that a party (franchisee) acquires to allow them to have access to a business's (the franchisor) proprietary knowledge, processes and trademarks in order to allow the party to sell a product or provide a service under the business's name. In exchange for gaining the franchise, the franchisee usually pays the franchisor initial start-up and annual licensing fees."
If an individual is going to start a new business, he has to learn a lot of things at it will probably entail higher organizational and learning costs.
He has to learn on his own the operational, financial, accounting and purchasing aspects of business whereas if he goes into franchising, most likely 80% of these areas will be mutually discussed and transferred by the franchisor. This is what we call, technology transfer."
Advantages of franchising:
These are some of the advantages of franchising:
* Established and recognized business name
* Business Support on areas of operations and finance
* Local and National Advertising and Promotion
* Economies of scale
* Business Recall
* Training on how to run the franchise business
It is glad to note that franchising is pump priming the Philippine economy.
The small and medium enterprises (SMEs) who are now into franchising are the backbone of our nation aside from the remittances coming from the Overseas Filipino Workers (OFWs).
Most of the times, the OFWs are the ones who are venturing into a franchise business.
Filipinos are swiftly changing their viewpoint of business.
The traditional way of earning money was to become an employee after graduation. Nowadays, students are more aggressive and more enterprising. They know that employment will only give them salaries that will not be enough to cover their daily needs. They realize that starting their own business will be the key to financial success. These student entrepreneurs wanted to be called owners of business rather than mere employees. Their entry point sometimes is through franchising.
The advent of modern technology adds more color to this business concept. Franchising companies are tapping the social media ( Facebook, Twitter, You Tube) to promote their brands. You can also see the prominent franchising entities during expos and exhibits.