Owning a business is a dream for many people but it can be difficult to get started. Depending on what type of business you want to own it consumes a lot of time and energy to operate. But there is some type of business model that makes your entrepreneurship journey easier and more profitable.
Franchising is a business model in which a company splits its ownership between two or more individuals. The company that franchises its business is called a franchisor to a franchisee. The franchise model is a popular business model for startups and small businesses.Â
Why choose a franchising business?
In the Franchise business, the entire operation is already systematized from its store operation, and raw materials use up to marketing you don't need to worry about those things and the system is proven to generate income. Compared to starting your own brand or business from scratch it is much less hassle than building everything. You don't have to worry about marketing and advertising because the company takes charge of them. You can concentrate on the business itself and make it as successful as you can.Â
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What do you need to start a franchising business?
All you need to start a franchising business is to look for a business or company that offers franchises. There are many franchises available on the market such as food franchises, supplies franchises, service franchises, and many more. But it is better to choose a franchise business that you can relate to or that you are interested in.Â
If you are looking for franchise opportunities there are many different franchises to choose from. Some are better than others and some are better than others for a specific type of business.Â
Here at Shoppiverse PH, we collated the most affordable franchise business that you can start in the Philippines. This is perfect for Overseas Filipino Worker who wants to put their hard-earned money into a good investment. Â
Food Franchise Business
1. Potato Corner
Potato Corner is one of the most famous street food snacks that are widely available in malls all over the Philippines.  Potato Corner opened its first outlet in the Philippines in October 1992 and began franchising the year after. If it's your first time diving into the franchise business this is one of the most affordable franchise businesses to choose from. According to their website, there are different types of franchising packages to choose from.
A. SCHOOL CART
- Initial Investment: PHP 230,000.00
- Minimum Space Size: 4 sqm
Inclusions:
- PHP 100,000 – Franchise Fee for 3 Years
- PHP 130,000 – Cart, Wares, Equipment
- PHP 2,000 – Initial Supplies
- Initial Investment: PHP 385,000.00
- The height Requirement from floor to ceiling is at least 2.6 meters
- Size: 4 - 5 sqm
- PHP 150,000 – Franchise Fee for 5 Years
- PHP 235,000 – Cart, Wares, Equipment
- PHP 5,000 – Initial Supplies
- Initial Investment: PHP 265,000.00 + Actual Cost of Construction
- Size: 4 sqm
- PHP 150,000 – Franchise Fee for 5 Years
- PHP 115,000 – Wares, Equipment
- PHP 5,000 – Initial Supplies
For more details, you can check their website here.Â
2. Dunkin Donut
Dunkin Donuts is one of the Pioneer chains of donuts in the Philippines. Dunkin' Donuts is an American multinational coffee and doughnut company, as well as a quick-service restaurant. They offer the franchise to Filipinos who want to venture into the donut business
The company offers three (3) business models to all potential franchisees:
A. Area Franchise
This type of model awards the franchise to the operator. The operator is in charge of developing the area or territory based on the agreed development schedule. A minimum investment of P32 Million is needed to put up the production center.
B. Dealership
This type of franchise package is a stand-alone model wherein an independent entrepreneur will be given the right to franchise Dunkin’ Donuts’ kiosk or take-out counter. The area required is at least five (5) square meters. The investment starts at PHP 200,000.00 which may vary depending on the floor space and location of the outlet.
C. Chainstore
A take-out booth that is applicable for convenience stores or canteens. If you’re definitely about the business model you’d like to invest in, prepare the following documents:
- Letter of intent that includes your complete details as the applicant and address of the proposed site;
- Photographs of the site or area; and
- Details of the proposed location and vicinity map.
The contract is good for five (5) years and renewable on a term basis upon the franchisee’s compliance, management, and operation. The franchisee is also responsible to hire employees and prepare the building plan with an architect and a contractor.
Franchise Packages
There are three packages to choose from, each differentiating by the amount of service you can handle.
- Chainstore Model – take-out booth applicable for convenience stores or school canteens
- Dealership Model – an investment of P200,000 which includes franchising fee, security deposit, equipment, and materials.
-  Area Franchising – for individuals or companies wanting to establish a production center in the location of their choosing
How to Apply Dunkin’ Donuts Franchise in the Philippines?
If you want to know more about the franchising process of Dunkin’ Donuts, you may contact them through their cellphone numbers (0998 8429920 and 0998 8429923), telephone numbers (+632 9687 300 loc. 286-87), and email ([email protected]). The head office of Dunkin’ Donuts is located at Golden Donuts, Inc., Cor. Reliance and Sheridan St., Mandaluyong City.
3. Minute Burger
When it comes to affordable burger Minute Burger is one of the best burgers that you can go to. Perfect for snack and baon at school. Minute Burger has been operating in the country for almost 30 years their stores have been serving customers delicious and affordable products. Since 2003, Minute Burger has been a recognizable, stable, and profitable franchise business for many of its franchisees.Â
According to their website franchising fee starts at Php 290,000Â
Package 1 : (2) MB Jr. Stores
- Initial franchise terms: 4 years
- Estimated Payback: approx. 18-24 months
Package 2Â : (1) MB Jr. Store + (1) Full Store
- Initial franchise terms: 4 years
- Estimated Payback: approx. 18-24 months
- Initial franchise terms: 4 years
- Estimated Payback: approx. 18-24 months
4. Shawarma Shack
- Investment cost (estimated): Php 661,000
- Franchise fee: Php 200,000
- Royalty fee: 3% of every sale and transaction
- Local Marketing fee 1%
- Advertising fee: 1%
- Term: 3 years on the initial term, then eligible for 3 renewals at 3 years each. A total of 12 years.
- Investment cost (estimated): Php 876,000
- Franchise fee: Php 250,000
- Royalty fee: 3% of every sale and transaction
- Local Marketing fee 1%
- Advertising fee: 1%
- Term: 3 years on the initial term, then eligible for 3 renewals at 3 years each. A total of 12 years.
- Investment cost (estimated): Php 3,100,000
- Franchise fee: Php 300,000
- Royalty fee: 3% of every sale and transaction
- Local Marketing fee 1%
- Advertising fee: 1%
- Term: 5 years on the initial term, then eligible for 2 renewals at 5 years each. A total of 15 years.
- Investment cost (estimated): Php 2,700,000
- Franchise fee: Php 300,000
- Royalty fee: 3% of every sale and transaction
- Local Marketing fee 1%
- Advertising fee: 1%
- Term: 3 years on the initial term, then eligible for 3 renewals at 3 years each. A total of 12 years.
5. Master SiomaiÂ
When it comes to Siomai business and franchising Siomai King is the pioneer and has a proven track record when it comes to franchisee and franchisor support. Their products include siomai, siopao, and thirst-quenching sagot gulaman. If you are looking for an affordable franchise business with great franchise support this is one company that you must go to.
Franchise Package Fee:Â PHP 280,000*
It includes:
- 1 Unit – Japanese Inspired Food Cart
- 1 Unit – Food Steamer
- 1 Unit – 5 cu. ft. Chest Freezer
- 1 Unit – Acrylic Plastic Juicer
- Complete Food cart Kitchenwares and plastic wares.
- Php 18,000 worth of Initial Food and Paper Products
- Complete Set of Crew Uniforms
- Cleaning Supplies
- Marketing Collaterals
For more details, you can check their website here.Â
Drugstore Franchise Business
1. Generika DrugstoreÂ
Since 2003, Generika Drugstore has been leading the way in providing affordable, high-quality generic medications. Their commitment to expanding accessibility is evident through the establishment of additional branches not just in major cities and municipalities, but also in smaller towns and barangays nationwide.
Below is the estimated investment cost according to their website.
2. Gamot Publiko
Franchise Package
- The right to use our trademark name and logo
- Site evaluation assistance
- Store planning, design and construction assistance
- Franchise Operations Manual
- Training on Business Management and Store Operations
- Startup and full opening assistance
- Guidance and education on generic medicines
- Advertising and Marketing support
- Ongoing business consulting and continuous guidance
In summary:
When choosing a business franchise to buy it is important that you conduct your own research and study regarding the background of the company that selling your franchise business. Take also an important consideration when choosing the business that you are interested in to avoid getting discouraged when you bump into problems during its operation. Avoid buying a franchise business in a company that is no more than 10 years old. There is a strong possibility that its profitability is not yet proven and might cause you to lose your investment. Â
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