IS FRANCHISING FOR YOU?

By: Armando O. Bartolome

Over the past 17 years since I established a franchise business consultancy firm, GMB Franchise Developers Inc in the Philippines, I have been a witness to the developments of franchising. This year 2010, many may not recall but the country is celebrating the 100th year of franchising.

 

Beginning with a few and mostly coming from the United States, today there are over a 1,000 plus various type of franchise businesses.  In fact from birth to death, from head to toe one can select or name a related business.

 

There are also developments in terms of the maturity of the population about franchising. In the early days, entrepreneurs were not so keen in exploring the benefits franchising have to offer. Most often it is either difficult process to install franchising in their respective enterprise. Yet as time went by, everybody would be amazed on how a tiny shop selling hamburgers in Cubao, Quezon City would become a giant and a household brand.  The company grew by leaps and bound in different locations in the country and even extending its presence in other parts of the globe. Such remark became a wish list in the minds of the entrepreneur.

 

For those looking forward to starting a business, there is a paradigm shift. People realize that getting a franchise is far better compared to the risk and trial and error in building a business from scratch. The support and brand equity of the franchise outweigh compared to start-up.

 

Despite the developments in franchising, there are factors, which need to make the population aware.
 

Proliferation of mediocre franchises is plenty in the market. For an entrepreneur, franchising no doubt offers a strategic way of expansion. Another party shoulders the build out cost. However one need to carefully look at the foundations of the business. Franchising is built on the success of the model or prototype business. Success is not simply having a long queue of customers but also checking on aspects like profitability, consistency of quality products/services, the manner of rendering customer service by personnel, and most of all the kind of support organization to back-up every branch. If one reads any newspaper or magazines, there are plenty of companies advertising its franchise. One should exercise CAUTION.

 

One should not rely on the amount the investment required. In my previous articles and forums, which I attend, I always stress the acronym IFBI… Investigate First Before Investing
 

It pains me every time people approached and narrate their sad plight of getting a franchise, which they thought would be good. In Tagalog there is a term “Akala ko..”
It is a fact that in any business there is always risk. In choosing a franchise, Investigate starts with the individual. One should pay attention to the type of personality as well as comfort in dealing with various people.

 

Even successful entrepreneurs who are benefiting from franchising their business pay attention to the type of franchisees to sign up with.

 

Apart from personality, there is a need to ask around friends and associates their opinion about the particular franchise.  Visiting the various branches at different times of the day, week and weekend may give indications if the business is worth investing.
 

But WAIT, just because there are positive reviews and the stores are packed doesn’t mean, one should sign up. My advice is to try meeting several franchisees. It pays off as to listen and establish a friendly relationship.

 

In my recently book launching entitled “Is Franchising For YOU?”, I  wrote concise details in proceeding and knowing if franchising is really for the individual.  There is even a suitability test, which is quite exhaustive. The book, which is my 6th publication, is written with lessons or sidebars. This is written for the Filipino people.

 

Done right and followed well, the individual may eliminate the guessing game plus avoid being victimized by scrupulous franchisors.

 

My wish is to eradicate those mediocre franchises thru proper educational campaign via the quad media.  Entice more entrepreneurs to think and act on not just Franchising but RESPONSIBLE FRANCHISING their business.

 

After all I recall what my folks taught me that for every good deed done, triple fold blessings pour out.
 

The book is available and given to participants of my monthly seminars. For details you may e-mail me at franchiseseminar@gmail.com.

About the author

 

In the early 80’s, when franchising was relatively a new word in the Philippines, Armando “Butz” O. Bartolome was moving around and living in the different countries of Asia and the Middle East as Regional Operations for an international franchise system – Shakey’s Pizza. His role was to negotiate with franchisees and provide operational support and assistance.

 

He saw the benefits and the potentials of franchising as a route to growth during his international stint and his many travels. This served as his encouragement to establish GMB Franchise Developers in 1993. His singular vision was to enable local companies grow and expand through franchising. His company thus became the first company in the Philippines with primary focus on franchise development.
His international franchise exposure and experience were his marketing proposition to home grown entrepreneurs. It was an uphill climb at the inception of the Company since only a handful understood franchising. Filipino entrepreneurs at that point found organic and company owned growth to the best expansion route. The initial few entrepreneurs that accepted franchising for its growth potentials slowly multiplied. Thus to date, he with his company has mentored the growth of over 200 companies.
 

During his over 30 years of experience in franchising, he has witnessed endless saga of growth of home grown companies not only locally but internationally. He is proudest at moments of international branch opening of Filipino Franchisors. As experience worth all the challenges since finally one can say; truly we can compete in the global market.

 

His many clients named him “Franchise Guru”.  He is the person to talk with and call for any, and all franchise queries and concerns. As the “Franchise Guru”, he is a staunch advocate of Responsible Franchising. This gives him the stamina and the dedication to travel to all parts of the country precisely to talk about the realities of franchising and what is expected from both the Franchisor and the Franchisee.
He is a renowned speaker on franchising. He is tapped by government entities to talk on the subject like: Department of Trade and Industry, Bangko Sentral ng Pilipinas, Development Bank of the Philippines, Go Negosyo as well as numerous private entities that gained franchising insights from him.

Franchising is the lifelong commitment of Armando “Butz” O.Bartolome