franchise_connect: franchiser, franchisee, master franchiser, and sub-franchisee

[onyx88]

calling all people engaged in franchising where are you??

let's discuss about our experiences.

let's have a roll call!!!


PRESENT!!! LOL


i franchised a soft ice cream cart at SM.

it's been running for 6months now.

[onyx88]

i'm also planning to have a coffee shop franchise. can you help me decide?

[mindingmybiz]

Hello to all. I've been operating a laundry shop for 3 years now. I've recently opened my doors to franchising.

If you know anyone interested or intending to franchise, I suggest you attend a franchising seminar on Feb 18 at Ground Floor Minnesota Mansion, 267 Ermin Garcia, Cubao, 1109 Quezon City. :bashful: :rotflmao:

[samcute]

mindingmybiz, what's the name of your laundry shop?

[aphyist]

guys! im interested in franchising San Miguel's Smokey's hotdog cart... any violent reaction???? this is my first time... please help me..

[samcute]

yun ba *** sinasabing pwedeng utangin muna *** franchise fee? im not sure pero yun ata napanood ko.

[Sleepy_Hollow_]

Question:

As a franchisee, how do royalties work? Is it a fixed amount meaning kumita o malugi I will give the same constant amount to the franchise provider? Parang boundary?

Or percentage lang siya ng profits nung branch?

For example, I franchise a Dencio's Resto-bar. Percentage lang ba ng profits ko ang kukunin ng Dencio's or I need to pay a fixed amount for the use of the name as well?

[samcute]

^^ percentage.

usually 5% of gross. minsan may ad fee din and LSM or MSF

[Brix99]

i'm currently saving so i can get a franchise in the future... how much capital do i need? is 500k enough to cover everything? from franchising fee to initial stock and operational expenses?

[onyx88]

^^

yes, 500k is enough for food cart franchises.

if you want soft ice cream there's mr. softy and jungle freeze.
if you want waffle there's waffle time and waffle pinoy.

basta madami talagang offers ngayon. from fishballs, ice cream, chicharon, dimsums, corn, popcorn, siopao, etc.

be sure to choose wisely.

[narutrix]

hello po :wave:

onyx88 : san makukuha yung contact information nung mga companies n sinabi mo (mr. softy, jungle freeze, waffle time, waffle pinoy) ?

and if ikaw papapiliin... ano yung d best n franchise for about 500k?

thanks....

[onyx88]

correction lang, pinoy waffle yun.



natutrix,

actually i franchised one of the companies you mentioned!!! hehe!!!

so far so good. good location, good product, good franchisor support, equals fast ROI.hehe!!!

ang ifranchise mo yung product na gusto mo. for me that is very very important. just buy the entrepreneur magazine to find all the contact numbers. they usually feature franchising on the month of july. if you really want the contact numbers of those companies just IM me. titignan ko sa magazine *** contact numbers para sayo.

[Brix99]

@onyx88

thanks for answering our inquiry. one more question... magkano po ba ang lease sa space in SM malls?

[mindingmybiz]

Hi samcute, my shop's name is Nothing But Laundry. Interested? :bashful:

[mindingmybiz]

Hi Sleepy_Hollow, both are correct when it comes to royalty fees to franchisors. Fixed & % of gross revenue. There are several reasons why both franchisors and franchisees would prefer either:

Fixed royalty fee
1. Preferred by franchisors over franchisees that have a manual accounting systems since it eliminates the task of auditing a paper-based financial statement every month before billing for royalty fees.
2. Preferred by franchisors over franchisees that are geographically impossible to visit and audit regularly.
3. Preferred by a franchisee from franchisors to limit the expense of royalty fees in the event that franchise becomes successful and gross revenues shoot-up.

Variable or percentage royalty fee
1. Preferred by franchisees that are reluctant over the success of the franchise in the initial months of operation. Assures the franchisee that the franchisor collects royalty when his franchise make money
2. Preferred by franchisors over franchisees that have an automated accounting systems that can be easily accessed and reviewed electronically

Fixed and percentage royalty fee
1. Normally agreed upon by both franchisee and franchisor. A franchisee pays fixed royalty until a certain revenue cap is reached, then the royalty fee shifts from a fixed to a percentage type arrangement. It can also go back to a fixed rate from a percentage type if revenues for a certain month goes below the revenue cap.

But whatever the case may apply to your franchise, this is normally negotiated during the application and you agree on a mutually comfortable arrangement.

Hope this helps you. :bashful:

[onyx88]

Brix 99,

it depends on the site requirement, the location in the mall, and in what floor it will be located.

for carts they charge a basic or fixed rent ranging from 13k-25k. my basic rent in sm is 20k.

for standalone, they will charge a basic rent or a percentage of gross sales. whichever is higher will be your monthly rent. according to my friend in lydia's lechon, foodcourt rent is 20% of gross sales.

[DaNa8]

How about franchises which are only 100k? Meron ba nun or kelangan pa mas lakihan yung capital?

[onyx88]

^^^

yes there are companies offering franchise packages on that range. (nacho king, shawarma, and fishballs)

there are also cheaper alternatives. a lot of companies offer franchising which requires super low investment.

but beware, these MAY be fly by night companies. (not all)

kaya ka nga nagfafranchise because you want to duplicate the success of others. e pano *** mga nagooffer ng franchising pero di pa naman successful?

kaya ka nga nagfafranchise because you need the PROVEN system.

you have three options:

1.) franchise a well known brand but you have to shell out a lot of money.

2.) franchise a not-so-popular business which you think has great potential. in this case, you pay minimal fees. be sure that you know how to spot POTENTIAL. mahirap malaman yan.

3.) franchise a not-so-popular business with no potential at all. patay ka dito.

i hope i was able to help.

[MajorGlory]

Brix 99,

it depends on the site requirement, the location in the mall, and in what floor it will be located.

for carts they charge a basic or fixed rent ranging from 13k-25k. my basic rent in sm is 20k.

for standalone, they will charge a basic rent or a percentage of gross sales. whichever is higher will be your monthly rent. according to my friend in lydia's lechon, foodcourt rent is 20% of gross sales.

I have a question about location. Let's say SM, what are the requirements if you want a kiosk or a standalone? I meant do need to have previous or existing business? A certain amount of money in bank? How long will it take to get an approval?

Thanks!

MG

[DaNa8]

onyx88, thanks for the reply! How about Mr. Softy, around how much do I need to franchise?

[onyx88]

majorglory,

just send a letter of intent to sm's leasing department stating your company profile and site requirements. if your company is new, they usually require product tasting.

you will have to wait for their approval. no specific time. kahit nga *** ibang malalaking companies nahihirapan minsan makapasok sa sm. sila na ang magdedecide kung sino gusto nila maging tenant.

if you have your own business and do not want to franchise, i suggest you apply to sm mall of asia. the mall is very very big. they are really accepting new tenants to fill up the space. maybe, you have a better chance there.

dana8,

last time i checked it is 455,000 total investment.

[soy_rico]

^^ onyxx88, if i want to apply for a space in sm mall of asia... do i need to send a letter of intent via post office or do i go to any administrative office ng sm malls?

[onyx88]

^^

it's all up to you. the franchise manager of a coffee shop told me it is better to hand it personally. my franchisor just fax the letter when he applied for my space in SM.

i would prefer the former.

[MajorGlory]

^^

it's all up to you. the franchise manager of a coffee shop told me it is better to hand it personally. my franchisor just fax the letter when he applied for my space in SM.

i would prefer the former.

Thanks for the info onyx...

[DaNa8]

Thanks, onyx88. I thought it would be cheaper since it's only a small cart and the product is also cheap.

[onyx88]

dana8, the reason why soft ice cream franchises are pricey is because of the ice cream machine. jungle freeze and mr softy uses SEA- a korean ice cream machine brand. it already costs half of the total investment. if you will use brand new taylor machines that would cost you 500,000+ for a single nozzle.

but for me, it's worth the investment.

[DaNa8]

^^^
I see, thanks for the info.

[soy_rico]

onyxx pwede k b mag request s SM or any malls kung anong location mo gusto or nasa discretion n nila yun... ?


thanks s mga inputs mo...talagang na i-inspire ako mag franchise *okay*

[onyx88]

soy rico, at first they will choose the location for you. if you are not satisfied, you can negotiate especially if you know or you are related to the leasing manager.hehe

i think the BIG tenants will choose first. THESE tenants do not apply, they are INVITED to lease in SM.

[businessempire]

hi brix and all,

pls. note that many (IF NOT MOST) foodcart biz operating in malls (i.e. SM) are company owned. you can check that out with your prospective franchisor/ser.

let me also caution you that even many popular foodcart franchise businesses are not making money. just go thru independent study carefully. sometimes it is good to ask an HONEST existing franchisee to know the truth. others won't tell you the real story, so make the best effort to know the facts at your own initiative.

you should validate the forecasts/projections that franchisors/ers would provide you. many a times these are misleading and inaccurate (if not stupid forecasts).

many foodcarts that we see by the way at malls/public places appear like they have been operating for years, but if you check or do your study ( i strongly advise you to perform your research diligently), you would discover the franchisees of these businesses are held by different owners changing from time to time.

I ALSO CAUTION YOU ABOUT.......oh...! never mind, i'll rather not speak about it anymore but my message to you and others......just do your research very well and validate all stories you hear, read and learn even from your friends whether the biz you are getting into is popular or not. I REPEAT, MANY POPULAR FOODCARTS ARE NOT MAKING MONEY. SOME USED TO MAKE MONEY...BUT SOME DON'T MAKE MONEY ANYMORE AS THEY USED TO BE.


IF I HAVE TIME LATER, I WILL MAKE A BIG STORY ON MY PERSONAL VIEW ON THE REAL STATUS OF FOODCART FRANCHISING IN THE PHILS. ON A SEPARATE THREAD.

CAVEAT EMPTOR !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!



@onyx88

thanks for answering our inquiry. one more question... magkano po ba ang lease sa space in SM malls?

[businessempire]

Hi all,

Let us know the real success rate of franchising (specifically foodcart franchising) in the Phils.

Do we have any available statistics to show if franchising biz (foodcart) is really a success in the Phils. from the time it started ? It looks like thru my informal studies, I came to find out, many, many, many old and new/current and former franchisees were a total failure. (will elaborate later).

The (Philippine) Entrepreneur Magazine had been endlessly featuring many success stories about franchising (foodcart specially) in the Phils. making it appear franchising is truly successful. If that is what they believe, I CHALLENGE THE ENTREPRENUER MAGAZINE TO PROVIDE US THE STATISTICS ON THE SUCCESS RATE ON RECORD. OTHERWISE I CHALLENGE THEM TO ALSO FEATURE IN THEIR MAGAZINE " FAILED FRANCHISEES" TO GIVE A BALANCE REPORTING SO AS NOT TO MISLEAD ITS READERS ESPECIALLY NOVICE INVESTORS WHO RELY MUCH ON THE CREDIBILITY OF THE MAGAZINE.

IF THIS MAGAZINE FEATURES THESE SUCCESS STORIES, DOES IT MEAN THEY ALSO RECOMMEND THEM ? I THINK THEY DO, BECAUSE THEY NEVER PLACED ANY DISCLAIMER ON THEIR FEATURED TOPICS.

[onyx88]

soy_rico, dana8, natutrix, majorglory, brix99,

maybe you would like to attend the franchising seminar of Mr. Kotik so that you would have an overview of franchising. Mr. Rudolf Kotik is an expert about franchising. i have seen him in a lot of franchise shows in manila. in my opinion, you will learn a lot from him because he is the real EXPERT. his advice are based on his education, experience, history, statistical data and not just mere observations. i may be sharing some inputs to all of you guys through my experiences but this guy really knows a lot lot more. i will also attend the seminar since i have plans on franchising a coffee shop. a coffee shop franchise nowadays is very costly and risky that is why i find the need to hear his piece. why dont we attend the seminar together?



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[Brix99]

@onyx

thanks for the tips. i'll be attending the seminar as soon as i get my schedule fixed. :)

@businessempire

the market is already over saturated with food carts... maybe that's one of the reasons why a lot of them is not doing well.

[soy_rico]

thanks onyxx for the info....

guys have you heard of the "go negosyo" activity at market market? this will be on feb 23 - 25. i think there are also booths about franchising....

[soy_rico]

^^ up lang natin ... sana guys you can share your franchising experiences... kahit good or bad...

[lehboy]

I also own a franchise, though it's a non-food company. All I can say is, do your research first, talk to other franchisees about the potential and future growth of the business, the relationship with the franchisor, etc.

For me, it's a real disappointment. Though it's a great lesson for me. In a way, it would have been better if I would not have franchised the business at all. I've been in the business for almost 20 months, and it's just now that I am regaining I've lost - by setting up another similar business.

Just be careful with franchising. If you think franchising is always the best way to way, think again.

[lehboy]

btw, businessempire is right. I've had issues of entrep magazine for the last 3 years, most of the articles there are success stories of franchises, but believe me, most of the franchises here in the philippines don't live up to the hype/promises of the franchisors. Most of the successful businesses are still start-ups.

In my franchise, I think only 10-15% of the franchisees became successful, the rest closed shop, most of them within a year.

[onyx88]

leh_boy,

what line of business?

maybe you can share or at least give us an idea what caused your disappointment? can you tell us what went wrong? we would really appreciate your inputs as this would serve as vicarious learning (learning through the experiences of others).

if you'll read my previous posts i've said that i've been satisfied with my franchise since i achieved my target ROI of 6 months. i would like to hear your piece so that we'll have an idea what to do or what to avoid in case we encounter the same situations.

thanx!!!

[soy_rico]

I also own a franchise, though it's a non-food company. All I can say is, do your research first, talk to other franchisees about the potential and future growth of the business, the relationship with the franchisor, etc.

For me, it's a real disappointment. Though it's a great lesson for me. In a way, it would have been better if I would not have franchised the business at all. I've been in the business for almost 20 months, and it's just now that I am regaining I've lost - by setting up another similar business.

Just be careful with franchising. If you think franchising is always the best way to way, think again.

do you mean nalugi b yung fanchise n nakuha mo? share naman po ng mga pitfalls n dapat iwasan ng mga gusto mag franchise... :)

[DaNa8]

To those having issues with the Entrepreneur magazine:

The magazine is supposed to serve as a guide. It doesn't necessarily mean that you'll succeed once you get into the same business. First of all, you have to do lots of research on the business venture you want to take. You also have to have the knowledge and interest. And I think we all know that going into a business will always involve risks so you should be ready for it.

[soy_rico]

^^thanks DaNa8 for the inputs *okay* ... so far baka pwede mo naman i share yung mga business experiences mo.. lalo n nung during start up ... thanks :)

[soy_rico]

hehehe ala lang...page starter... so guys lets keep the ball rolling *okay*

[DaNa8]

^^thanks DaNa8 for the inputs *okay* ... so far baka pwede mo naman i share yung mga business experiences mo.. lalo n nung during start up ... thanks :)

Actually, I don't have a business yet. Still working on building my capital. My sister is a contributing writer of Entrep mag and that's her reply when I told her the disappointments people mentioned in this thread.

[onyx88]

though possible, i find it difficult to feature an article naming the company/franchisor of failed franchises. both sides must be interviewed. if i am the franchisor(esp if my company is not yet well established), i will never permit the printing of such article. come on guys, who wants bad publicity? let's be realistic. although possible again, the company will have to explain their side really really well in order to reciprocate the "bad" to "good".

pag nagfail ang isang franchise hindi naman ibig sabihin na yung franchisor lang ang may kasalanan. sometimes, it's also the fault of the franchisee and most of the time, it's both their fault. in other cases, it's because of external factors (i.e., bad publicity, seasonality, stiff competition, gov't intervention, etc.)

i have read an article about a restaurant who admitted that one of their franchises failed. it was a very bold move but they turned it positive by putting the blame on some gov't agencies. they claim that the franchise was doing very well until the local municipality constructed an overpass in front of their store. instead of focusing on the failure, the article was presented as a guide and as a word of caution to PROJECT or FORECAST possible shortcomings or failure to achieve sustainability. in my opinion, after reading the article, no harm was done in the company.

[onyx88]

to all,

as much as we would like to hear both sides of the story, let me post the reply of GABS, a moderator of the entrep mag forum, to businessempire's big question and challenge.




According to GABS:

I think your 'challenge' post is quite rude and affront. I don't even think you realize what the Entrep magazine is trying to achieve. They are not only focused on showcasing the businesses themselves, but also the people behind those businesses that made them successful in the first place.

Why should you give the burden of providing these information to the magazine? Isn't this supposed to be YOUR part of doing due diligence when you are taking on a business proposition? I would like to think that those who rely this particular aspect of buying or taking on a business on others, may it be a franchise, MLM or whatever, are just plain lazy. The success or failure of a franchise, just like any other business, relies solely on the person who owns it. If that person didn't invest enough time and dedication of his own to learn all there is to know about it himself, then his failure is as concrete as a nail to a coffin.

FYI, if you're going to buy a franchise, your franchisor is supposed to have what is called a Franchise Offering Circular or FOC. In here you will be able to see, among other important details, a list of all their current, former and terminated franchisees. All you need to do is investigate these franchisees and ask them key questions to determine whether you should take on the venture or not. Pay particularly close attention to the FAILED and TERMINATED franchises, as they can provide you with the answers on the extent of the downside you will face in this franchise. The amount of info you can learn from them is as equally important as the ones you will get from the successful ones.

That said, let me emphasize again that the key person in my entire reply is YOU; not the magazine, not your neighbor, not the occasional co-worker or busboy who will give you some half-cooked advise on how much this franchise or that franchise is the best. In the world of business, if you don't do your homework, nobody else will do it for you. Peace.

[Trevi]

I ALSO CAUTION YOU ABOUT.......oh...! never mind, i'll rather not speak about it anymore but my message to you and others......just do your research very well and validate all stories you hear, read and learn even from your friends whether the biz you are getting into is popular or not. I REPEAT, MANY POPULAR FOODCARTS ARE NOT MAKING MONEY. SOME USED TO MAKE MONEY...BUT SOME DON'T MAKE MONEY ANYMORE AS THEY USED TO BE.


IF I HAVE TIME LATER, I WILL MAKE A BIG STORY ON MY PERSONAL VIEW ON THE REAL STATUS OF FOODCART FRANCHISING IN THE PHILS. ON A SEPARATE THREAD.
CAVEAT EMPTOR !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Hi Businessempire :) Where have you been? I miss your posts in the other thread. Remember my posts in the Young Entrep forum re Franchise ? I still haven't changed my stand on it. Personally, I will not buy a franchise. I admit A turn-key business is tempting, but nothing beats ground..spade..and hardwork, specially if you are just starting out.
I really hope you start that thread. *okay* For sure you'll have my support...and uhm..also scathing posts :D

Hello to all.

[onyx88]

hi trevi,

i also know a lot of people who are not into franchising. we respect your stand.:)

kahit ako gusto ko din magkaroon ng sarili kong business na talaga namang masasabi kong ako talaga ang nagpursige para maitaguyod ang negosyo na yun (restaurant talaga dream business ko). pero as of now, since im still a college student with no specialization on certain skills like cooking, IT, crafts, art, etc., i opted to franchise a small business. I think it's a pretty good strategy to learn the practical applications of business.

Actually, i could have just continued our family business but i really don't have the passion for it.

the owner of teriyaki boy franchised a food business when he was still studying. unfortunately, his franchise failed. but from that failure, he stood up and look at where he is now.

i really agree that nothing is more fulfilling than succeeding on your own business venture.

are you also engaged in business?

[soy_rico]

i believe franchising is meant for beginners in business. and from there you should learn and move on. sometimes, good business ideas does not come easy and often opportunities are missed by the untrained eye.

i dont have a business yet, but i'm l doing my research on the options that i have, and franchising is one of them. *okay*

to trevi and onyx88, thanks sa inputs nyo :)

btw, onyxx, kaka inspire n college student k p lang at meron k nang sariling business *okay*

[onyx88]

soy_rico,

it's really very hard to balance my studies and my business. thank god it has been rewarding so far. i will graduate this march that's why i am hoping that i can open a new coffee shop franchise by april or may.

if you are really decided to franchise, be sure to send your letter of intent early. it is not that easy to open a franchise especially if you are eyeing the malls.

ano bang line of business ang gusto mong pasukin?

[Trevi]

Hi Onyx & Soy I am very happy that as early as now, you already have plans of becoming an entrepreneur. It took me years before I decided to crossover and become one. In hindsight, I regret not doing it earlier, however, the experience and learnings I got from the years of being employed; formal studies and "making mistakes with other people's money ;)" has given me a certain level of competency to spot opportunities and confidence to venture into businesses I feel are worthwhile. I have made a lot of posts in the young entreps thread (you will have to do some backreads from page 57 up) that can make you understand my aversion to franchises. My brother owns several branches of a franchise and has recently acquired a master franchise of another business for the Philippines and I cannot argue with his success BUT I still prefer to do it from scratch.

Good luck to all your future ventures. For all its worth, a Franchise is a way to learn the basics - whether it is a success or failure, you are sure that you will learn from the experience so that your succeeding business(es) will be better.

[businessempire]

to all,

as much as we would like to hear both sides of the story, let me post the reply of GABS, a moderator of the entrep mag forum, to businessempire's big question and challenge.




According to GABS:

I think your 'challenge' post is quite rude and affront. I don't even think you realize what the Entrep magazine is trying to achieve. They are not only focused on showcasing the businesses themselves, but also the people behind those businesses that made them successful in the first place.

Why should you give the burden of providing these information to the magazine? Isn't this supposed to be YOUR part of doing due diligence when you are taking on a business proposition? I would like to think that those who rely this particular aspect of buying or taking on a business on others, may it be a franchise, MLM or whatever, are just plain lazy. The success or failure of a franchise, just like any other business, relies solely on the person who owns it. If that person didn't invest enough time and dedication of his own to learn all there is to know about it himself, then his failure is as concrete as a nail to a coffin.

FYI, if you're going to buy a franchise, your franchisor is supposed to have what is called a Franchise Offering Circular or FOC. In here you will be able to see, among other important details, a list of all their current, former and terminated franchisees. All you need to do is investigate these franchisees and ask them key questions to determine whether you should take on the venture or not. Pay particularly close attention to the FAILED and TERMINATED franchises, as they can provide you with the answers on the extent of the downside you will face in this franchise. The amount of info you can learn from them is as equally important as the ones you will get from the successful ones.

That said, let me emphasize again that the key person in my entire reply is YOU; not the magazine, not your neighbor, not the occasional co-worker or busboy who will give you some half-cooked advise on how much this franchise or that franchise is the best. In the world of business, if you don't do your homework, nobody else will do it for you. Peace.


Hi there,

This was my earlier reply to her reaction from another forum:

Hello Gabs,


There is no argument on the franchisee's own responsibilities. Everybody knows that of course.

The bottom line here is for the magazine to help us provide the statistics. Its objective in the service of Journalism is to provide complete and verifiable information. To research for the right information and reveal in public. To substantiate what they write. That is what they should give priority. WHAT DOES THE STATISTICS SAY ? Are you telling me it is wrong to challenge them to provide this information ? Are you telling me I have to fully rely my information from my franchisor ? That I will accept at its face value what the franchisor provides ? No way, you are putting the prospective franchisee in a very dangerous and a very risky situation. Independent sources will make one comfortable to get the right information, don't you think so ? From time immemorial even before the advent of today's technology, most of us have been relying on books, newspapers, magazines and other reading materials as the best source of information.

Magazines should be responsible and professional. At least they must place a DISCLAIMER on their featured topics unless if they so agree with these people they interview and accept legal responsibility/ies for these acts.

I therefore repeat this challenge to the magazine. PLEASE PROVIDE YOUR READERS LIKE ME THE STATISTICS. Is franchising as a whole a SUCCESS or a FAILURE IN THE PHILIPPINES ? (specifically foodcart)

Thank you for your reaction Gabs. At least I am able to correct some of your wrong impressions in mind as you put them in writing here.

[onyx88]

if you want to read the exchange of ideas of businessempire and gabs, you can visit http://www.entrepreneur.com.ph/board/index.php?topic=12389.0


businessempire,

i understand your sentiments. there are really a lot of food cart franchises failing even if they are located in big malls. i have observed this because of my co-tenants rellocating from one place to another, and sadly some really close and leave the mall. even my business today is not doing so well compared to last year. this was projected that is why im not surprised. seasonality really plays a big role in the ice cream industry. luckily im still profiting. last year was just better. we are expecting to recoup this summer.

[soy_rico]

soy_rico,

it's really very hard to balance my studies and my business. thank god it has been rewarding so far. i will graduate this march that's why i am hoping that i can open a new coffee shop franchise by april or may.

if you are really decided to franchise, be sure to send your letter of intent early. it is not that easy to open a franchise especially if you are eyeing the malls.

ano bang line of business ang gusto mong pasukin?


sa budget ko ngayon, malamang s foodcart business ang option ko, but im also open to other businesses. i really am studying it carefully. Sa recent Go Negosyo summit s market market, i spoke with one of the tenants there and sabi nya, hindi daw cia kumikita at abonado p cia for the rent ng space. Well i guess one of the factors is hindi maganda location nya s mall. Im still getting as much info as i can, hehehe baka nga drop by ako s 4th philippine busness fair for more ideas.



trevi: im actually reviewing young entreps thread...and im glad sinabi mo kung anong page ang post mo about s franchising :) saved me a lot of time. *okay*

[businessempire]

Re: A BIG QUESTION & A CHALLENGE
« Reply #10 on: Today at 11:07:15 am » Quote Modify Remove

--------------------------------------------------------------------------------

(Related story which I earlier posted in another thread)



This is to call the attention of everyone in this e-group particularly franchise consultants, franchise promoters, government agencies or anybody here that can show us or provide a verifiable statistics on the real success rate of franchising business (foodcart business) in the Phils.



This will finally reveal to us the real outcome whether all these success stories frequently featured on business magazines represent the general sentiment of the business. In this way, matters of concern will be cleared out and may be helpful before a decision is made by a prospective franchisee and to know once and for all the real score of the business in the Phils.



Does the foodcart franchise business in this country a success as a whole or just the making of franchise consultants, franchisors/ers, media and other supporters to promote their own vested interests ?


Are the figures encouraging or may actually be disappointing ? (so we want to know) .


So, I CHALLENGE THESE FRANCHISE CONSULTANTS TO SHOW US THE FIGURES.



We don't need by the way the statistics in the USA or other countries (as they always show us on seminars) because everybody knows already the success ratio in those countries. WHAT WE NEED IS THE SUCCESS RATE IN THE PHILIPPINES.



Can they show us the statistics ?

[onyx88]

i just bought the march 2006 issue of the entrep mag. according to Mr. Robert Trota, franchising has a 97% success rate. according to my professors, 80% of people who start their own businesses fail.

but guys, if you are really passionate about what you do and you really put your heart to it, who cares about these numbers? these numbers will not determine your own success. they only serve as a guide like the articles in the magazine.

[soy_rico]

Re: A BIG QUESTION & A CHALLENGE
« Reply #10 on: Today at 11:07:15 am » Quote Modify Remove

--------------------------------------------------------------------------------

(Related story which I earlier posted in another thread)



This is to call the attention of everyone in this e-group particularly franchise consultants, franchise promoters, government agencies or anybody here that can show us or provide a verifiable statistics on the real success rate of franchising business (foodcart business) in the Phils.



This will finally reveal to us the real outcome whether all these success stories frequently featured on business magazines represent the general sentiment of the business. In this way, matters of concern will be cleared out and may be helpful before a decision is made by a prospective franchisee and to know once and for all the real score of the business in the Phils.



Does the foodcart franchise business in this country a success as a whole or just the making of franchise consultants, franchisors/ers, media and other supporters to promote their own vested interests ?


Are the figures encouraging or may actually be disappointing ? (so we want to know) .


So, I CHALLENGE THESE FRANCHISE CONSULTANTS TO SHOW US THE FIGURES.



We don't need by the way the statistics in the USA or other countries (as they always show us on seminars) because everybody knows already the success ratio in those countries. WHAT WE NEED IS THE SUCCESS RATE IN THE PHILIPPINES.



Can they show us the statistics ?


hhmm... hope u dont mind me asking this... but do you personally know people who are into food cart franachising? are they successful or are they having problems ? what type of food cart business are they into .. thanks :)

[onyx88]

soy_rico, what are your food cart options? (ice cream, waffle, chicharon, hotdogs, juices, popcorn, candy, sandwiches, coffee, etc.)

malay mo matulungan kita since marami na din me nakilala at nainterview na franchisers. lahat kasi ng food carts na nakuha ang attention ko e inapplyan ko lalo na sa ice cream business.

[businessempire]

i just bought the march 2006 issue of the entrep mag. according to Mr. Robert Trota, franchising has a 97% success rate. according to my professors, 80% of people who start their own businesses fail.

but guys, if you are really passionate about what you do and you really put your heart to it, who cares about these numbers? these numbers will not determine your own success. they only serve as a guide like the articles in the magazine.



Hi Onyx,



We need the ACTUAL Success rate. (And in the Philippines)



In many parts of other countries, particularly in first world countries such as in the U.S.A, the business franchising statistics showed/shows a high percentage of success than those that had failed and why not, 1) the system is already in place 2) ready market 3) track record etc...etc... But I strongly doubt if this has happened in the Philippines because I have encountered a significant number of failed franchisees around including but not limited to the food cart franchises featured as successful business at Entrepreneur Magazine. I therefore want to confirm if these observations which were based on my informal studies constitute the majority of them as the outcome has a huge impact to a prospective franchisee. Whether my findings are correct or not, the issue here is we should have these figures known to the investing public to give us a no-nonsense information on the big picture of what could be expected once we so decide to get a franchise. This relevant information may be obtained not only from business magazines but this should also be addressed to those who promote franchising as they portray business franchising during seminars a truly successful business venture in the country.



This is the reason why I and others wanted to know the numbers because this STATISTICS is a relevant business tool for a prospective businessman in his decision making as it serves as an indicator or as a guide as you said of what he could expect in the event one would decide to go into a Franchising biz (& not a personally owned one ).



Putting your heart into the business, while that may sound so positive and non-debatable, that alone is surely not enough as there are equally relevant points to know such as THE BIG PICTURE because this will tell us what went right or what went wrong in the first place. Especially for one who has limited knowledge into the business and these are the people who normally buy into the franchise because of their little know-know to run a business, otherwise they could have started on their own.



Please note too, that unlike in other foreign countries, in the Philippines, THERE IS NO AGENCY OR ANY GOVERNMENT ENTITY THAT REGULATES FRANCHISING. (Food Cart). THIS MEANS THERE IS NO FRANCHISING LAW IN THIS COUNTRY. THEREFORE, FRANCHISERS/ORS ARE SUSCEPTIBLE TO ABUSE THEIR POSITION AND THIS IS CLEARLY EVIDENT ON THE TERMS AND CONDITIONS STATED ON FRANCHISE CONTRACT AGREEMENTS WHERE THE FRANCHISEE IS AT THE MERCY WITH VERY LIMITED RIGHTS.



I hope I am wrong with my findings. As it appears, FRANCHISING SEEMS SUCCESSFUL ONLY IN THE PHILIPPINES IN SO FAR AS IT BENEFITS THE FRANCHISORS/ERS (BUSINESS OWNERS) LEAVING THE POOR FRANCHISEE AT THE MERCY.



SHOW US THE STATISTICS. IT WILL TELL THE WHOLE STORY. IT WOULD TELL US WHAT WENT RIGHT OR WHAT WENT WRONG. IT WOULD THEREFORE GUIDE US IN OUR DECISIONS. IT IS A RELEVANT TOOL. IT WOULD TELL US WHETHER IT IS WORTH JOINING THEM OR NOT.



By the way, who doesn't want to start his own business if he can ? And who doesn’t want to put his heart, dedication, care and time to run his own business ?



BUT WHO WANTS TO BELIEVE A MAGAZINE OR A FRANCHISE CONSULTANT WHO CANNOT PROVIDE THE PHILIPPINE STATISTICS AND INSTEAD ALWAYS QUOTE THE U.S.A. DATA. ?


IS IT FOR REAL OR A FAIRY TALE ?

[onyx88]

businessempire,

we get your point. as i've said, i understand your sentiments. gaya mo, gusto din naman namin malaman yang stats na yan.

I think the 97% success rate is also applicable in the Philippine setting. the article was written by Mr. Robert Trota, the President of Philippine Franchise Association and Max's Restaurant. Please get a copy to verify or you can also call him since his numbers were provided. (02) 687-0365 to 67

if you are really seriously seeking for these data, why don't you go straight to these people to get what you want instead of endlessly debating in different forums. i think that is the right thing to do--- courteously ask them to provide these data.

[soy_rico]

soy_rico, what are your food cart options? (ice cream, waffle, chicharon, hotdogs, juices, popcorn, candy, sandwiches, coffee, etc.)

malay mo matulungan kita since marami na din me nakilala at nainterview na franchisers. lahat kasi ng food carts na nakuha ang attention ko e inapplyan ko lalo na sa ice cream business.


thanks onyx88 :) namimili ako s dimsum, binalot, at roasted chicken n franchise. pero curious ako s juices n fodo cart... ***** eto yung mga tea square at zagu n brands.

im still studying kung saan maganda mag lagay ng pwesto, s malls b or other locations. sa tingin ko kasi, location talaga is very important kaya hanap talaga ng good location. :)

[businessempire]

businessempire,

we get your point. as i've said, i understand your sentiments. gaya mo, gusto din naman namin malaman yang stats na yan.

I think the 97% success rate is also applicable in the Philippine setting. the article was written by Mr. Robert Trota, the President of Philippine Franchise Association and Max's Restaurant. Please get a copy to verify or you can also call him since his numbers were provided. (02) 687-0365 to 67

if you are really seriously seeking for these data, why don't you go straight to these people to get what you want instead of endlessly debating in different forums. i think that is the right thing to do--- courteously ask them to provide these data.


Onyx,



The purpose of this thread which you started I understand is to interact each other and get no-nonsense feedback from everyone specifically about franchising.


I am not endlessly debating in different forums. My concern and objective is to dessiminate this information to a wider group as much as possible in order TO MAKE A POINT " - "to caution".


On your earlier post about a Franchisor/er (Expert):


Let me further caution everyone not to give full reliance on what they (franchisors/ers) say. While they have the experience, remember these people have their own vested interests and you can't take it away from them. Their bread and butter is into franchising, the same applies to other entities.


Let my challenge and question remain. There is no need to beg for this information from them. Expert franchisors/ers and magazines should have this very basic info known to the public even if the figures are unfavorable without need of being asked. And so, why don't they tell us or print in magazines ? Guys, think about it.

[cable_girl]

hi! i have just stumbled upon this thread. Can I just give my 2 cents on franchising in the Philippines?

I am a business grad and as far as I can remember, itinuro sa amin that you venture into franchising in order to minimize risk kasi you are buying their proven system. Proven meaning they have been operating their business and have been using that same system for a number of years. That is the justifiable reason for you to pay for franchising fees and royalties. On the part naman ng franchisors, ideally, they only open their business for franchising after they have established it already and have perfected their system. But what I have observed here in the philippines, every new business concept will instantly offer their business for franchising without first perfecting their system to ensure its viability. kaya tuloy ang daming come and go na franchises. baka dahil din ito sa mentality ng pinoy na biglang yaman. These franchisors don't care about their franchisees. All they care about are the money that goes into their pockets. I'm not saying na all ha. but there are alot talaga. It really sad na nangyayari ito.

[businessempire]

ERRATUM:

The word/s used "franchisors/ers" as mentioned below earlier should have been read as:


Franchise Consultants / Franchise Experts


------------------------000000000000000000000000----------------------

Earlier Message:

....... On your earlier post about a Franchisor/er (Expert):................

..........Let me further caution everyone not to give full reliance on what they (franchisors/ers) say. While they have the experience, remember these people have their own vested interests and you can't take it away from them. Their bread and butter is into franchising, the same applies to other entities.


Expert franchisors/ers and magazines should have this very basic info known to the public even if the figures are unfavorable without need of being asked.

----------------------------00000000000000000---------------------------

[Trevi]

This is a post I made last Nov 1, 2005 - ref Page 60 post no. 2283 in the Young entrep forum ..

I hope this could be of help. To be worwaned is to be forearmed. As they say ...a fine net has many holes. ;)

Also beefnmushrooms concerns are valid. We all stand to GAIN in knowing the real score.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Hi Max. Share ko lang. Sometime in the 90's, I attended a short biz course on Retail Admin and Franchising in the US Midwest under the auspices of Hallmark and Rusell Stover Candies. I was with a filipino student (we were 4 in the batch) - (currently the owner of One of the local-small -famous- ill-rep FRANCHISING (??!!) Company in NCR) who really put to heart what we learned - the sad part is he got the BAD part - he did it to put one over so many of our kababayans. Funny thing, During one of our session breaks we had a talk and, he had it down pat (as early as then) that his "market" (victims) would be the OFW's, The "un-learned" and "Un-schooled" who didnt have time / or didnt have the skills - this "turn-key" business would be the way to success (perdition??). You would not believe how much money this man makes on selling a pipe dream!!!! (As of last count he was offering about 30++ D/E Franchises being advertised -actually just a re-packaged idea!!!). The most disturbing thing is that his success has bred a lot of "practitioners" doing the same thing. I hope that whatever you learn from franchsising will be put to good use for yourself and your business first

[onyx88]

soy_rico,

wala pakong nakikilalang franchiser sa mga choices mo. have you tried siomai house?

i just got a copy of the special edition of entrep mag's top 50 entrepreneurs. the stories are really inspiring. i already met 1 out of the 50 and he really inspired me in a lot of ways.

just finished our finals today. gagraduate nako thank god!!! im ready na to franchise a coffee shop. location nalang ang hinihintay ko. have you heard the latest news about SM Mall of asia?

[soy_rico]

^^ hmmm... this is the first time i've heard about siomai house...pero i'll research on it *okay*

about s mall of asia... all i know is n move ang opening date nya...n instead of march 3, may n ata ang opening dahil yung ibang tenants inaayos p ang place nila and for the mall to be really finished.

i really thnik malaki potential ng sm mall of asia, although it may take time bago mapuno. pero hopefully if i get a franchise makaka pwesto ako dyan...hehhee

sabihin mo pag open n ang coffe shop mo...punta ako dun for sure.. *okay*

-----

Trevi , thanks for the info :)

[onyx88]

soy_rico,

ill PM you the article. sana lang it's not true or the case is not that severe.


of course ill invite you if it will push through.



as usual matagal na naman makakuha ng magandang location. at matagal din naman bago ko napili yung coffee shop na ifafranchise ko. madugong research din at sangkatutak na interviews at meetings. pero at least naapprove na yung application ko. location nalang ang kulang.

ayoko namang mapabilang dun sa mga sad stories na naishare dito.

have you tried holy kettle corn?

[herald_day]

share ko lang *** e-mail ng ZAGU sa aken.... this past weeks kase bigla akong napaisip na kumuha ng franchise neto.. kaya i went to their site para kumuha ng infos.. and then the after which kinuha ko *** contact number nila and i called 'em up right away.... un nag-inquire ako about their business... tapos sabi nila na effective March 01,2006 naka-hold daw *** franchising nila... dahil daw sa sobrang dami ng applications... at di pa alam kung kailan pa mali-lift *** pagka-hold ng franchising nila.... pero kahit na ganon man... i gave my e-mail add dun sa kausap ko para ma-send pa rin nya *** details about dun sa ini-inquire ko.... nagkainterest lang ako sa ZAGU kase dito sa Angeles City.. sobrang mabenta ito.. sa tingin nyo ba ok kunin ang ZAGU?

anyhow.. heto *** e-mail nila....


____________________________________________________________________________________________________ __________________________________________
WELCOM TO ZAGU



ZAGU, the leader in the pearl shake business in the Philippines, is looking for aspiring entrepreneurs around the globe to be part of this dynamic business.


ZAGU introduced the Pearl Shake to the Philippine market. The drink’s uniqueness and the variety of flavors it offers broaden its appeal to the customers and keep them interested. Taste and flavor are the essential components, keeping customers coming back for more.


ZAGU is one of the revolutionary companies in the Philippines. To satisfy the customer’s need for high quality beverage, ZAGU offers fresh made-to-order preparation winning customer confidence as their drink is prepared right before their very eyes.


ZAGU considers AUTHORIZED DEALERS as partners and we welcome your ideas. On the other hand, ZAGU views you as an internal customer, whom we serve, so both of us can succeed.


ZAGU is determined to help its authorized dealers to meet and exceed their expectations. ZAGU authorized dealers make a significant commitment both in financial and in personal resources to their business. We match their commitment with our own. We are committed to customizing the perfect combination of marketing and support to meet our partners individual needs. We even own and operate 70 outlets as part of our promise to “walk in your shoes” and continue to learn and know the business first hand.


MISSION STATEMENT


1. To provide the best quality, reasonably priced products in the Food and Beverage industry.
2. To be the leader in our industry, attained by following a well-planned expansion through retail outlets and wide product distribution.
3. To continuously generate awareness, interest and desire for our products, resulting in frequent/repeat purchases.
4. To establish ZAGU as a highly regarded international brand name.



ZAGU’S COMMITMENT TO EXCELLENCE

ZAGU is dedicated in performing the highest level of C H A P S


C - Cleanliness

H - Hospitality

A - Accuracy

P - Product Quality

S - Speed


And in our commitment, ZAGU proudly claims that we have:

 Customer Focus

 Competence

 Hard Work

 Teamwork

 Belief in People

 Integrity

 Dedication



WHAT’S IN IT FOR AN AUTHORIZED DEALER?


 Instant Market
 Additional Source of Income
 Use of ZAGU Trademark and Logo
 Proprietary Recipes, Ingredients and Procedures
 High Profile National Presence
 Better Discount for Purchases
 Ongoing Training, Operational and Marketing Support
 Exclusive Product Distribution
 Contemporary Design and Décor Package
 Assistance with Site Selection
 Customized Operational System
 Continuous Research and Development


A. Defined Territory
An authorized dealer is not granted a specific and exclusive area.

B. Instant Market
An authorized dealer directly serves the end consumers and so it captures the market right there and then.

C. Additional Source of Income
Becoming an authorized dealer can supplement if not totally replace present income. The owner may appoint a manager if he/she cannot directly manage daily operations while attending to his/her other means of acquiring income.

D. Use of ZAGU Trademark and Logo
ZAGU name and logo will distinguish the outlet from the competition.

E. Proprietary Recipes, Ingredients and Procedures
ZAGU will share with its authorized dealer customer-tested and customer approved recipes, as well as enhancements on food preparation, trends in customer service and store management.

F. High Profile National Presence
ZAGU stores are situated strategically at prime locations and people have recognized its superior quality beverages.

G. Better Discount for Purchases
Authorized dealers can purchase products and supplies at discounted prices.



H. Ongoing Training and Operational Support
ZAGU authorized dealer and their service crew will be trained in day to day operations, drink preparation, point of sale system, inventory and other “must know” areas. ZAGU provides continuous support services to ensure that quality products and services are achieved and maintained. Any enhancement in the operation and new developmental programs will also be shared.

I. Marketing and Advertising Support
Zagu will provide a variety of advertising and marketing materials that will help promote the company and increase patronage.

J. Exclusive Product Distribution
Authorized dealer will exclusively sell proven quality products identified by the name “ZAGU”.

K. Contemporary Design and Décor Package
ZAGU’s design is simple using very minimal colors that give phenomenal impact to customers. Its carts, counters and kiosks are in modular pieces giving flexibility and adequate space thereby allowing ease of preparation and operation.

L. Assistance with Site Selection
ZAGU authorized dealer can be situated almost anywhere – food courts, shopping mall hallways, school campuses and roadside. ZAGU will assist in evaluating locations, development and approval of architectural plans including the layout and décor specifications.

M. Customized Operational System
ZAGU has devised a standard, unique and uniform system for establishment and an operations manual, which details the entire system with guidelines and procedures to operate your ZAGU store.

N. Continuous Research and Development
ZAGU continuously develops, monitors and improves products in its commitment to provide its customers with the highest quality products.


FREQUENTLY ASKED QUESTIONS

Q. When was ZAGU established?

A. The innovative drink was conceptualized and was turned into reality by Genevieve G. Lim in April of 1999, with its first franchise awarded on October 1999 in Manila, Philippines.

Q. How many ZAGU stores are there?

A. ZAGU has more than 170 stores strategically located throughout the Philippines.

Q. What exactly does ZAGU look for in a partner?

A. ZAGU looks for dynamic people who are willing to do business with ZAGU – People who have:
 Dedication
 Hard Work
 Competence
 Customer Focus

Q. Do I need any experience to become a Zagu Authorized Dealer?

A. Our family of authorized dealers is from all walks of life. They range from housewife to bank executive, student to retiree, some of whom have no prior experience in the food and beverage business. We seek those with a willingness to work as a team and desire to succeed long term as our prime candidates.

Q. What is the process involved in the application?

A. It starts with fill up of initial questionnaire, interviews, meetings, payment of deposit, fill-up of form, submission of requirements, payment of package, signing of agreement and training.

*Time Frame – depends upon mutual commitment and projected schedule of both parties. Approximately 45 - 60 days.

Q. How much is the investment to become a Zagu Authorized Dealer?

A. The approximate investment package is between P200,000 – P300,000 and is already fully operational.


Q. How much is the royalty?

A. No Royalty fee.

Q. What other expenses will I incur?

A. Investment depends on the proposed budget for the following items:

I. Initial Expenses II. Start-up Capital (not with Zagu)
- Reimbursable expense - Security Deposit
- Cart/Construction cost - Advance Rental
- Equipment - Construction Bond
- Signage - Business License / Permit
- Inventory - Salaries
- Uniforms
- Insurance

Q. Can I operate more than one store?

A. Yes, ZAGU encourages multiple ownerships. However, each store is treated separately.

Q. What other business opportunities does ZAGU offer?

A. ZAGU has opened its doors to International Wholesalers and Food Service Institutions to be a part of the business.

Anybody who’s willing to buy and sell ZAGU products can be a Wholesaler in a non-exclusive arrangement, that is, he or she would not be limited to buy and sell other products. This arrangement is ideal as a “side-line” or “part-time” to supplement income since there is no time commitment and quota requirement to worry about. There is no need to have a store to run the business – wholesaler can order when he/she sees the need. Wholesaler is also not obligated to follow. Lastly, the wholesaler cannot use the ZAGU Tradename.

Food Service Institutions such as restaurants, canteens and coffee shops willing to integrate ZAGU in their existing product offerings can be a ZAGU institutional account. Carrying ZAGU can be an additional attraction to their existing product line considering its brand equity. An institutional account need not spend a huge amount to start up and operate. He/she spends for the drink mixes, pearl and a blender. Offering ZAGU will help generate easy additional income. Given the low capital outlay required, no maximum selling price, no franchise fee nor royalty fee, it will surely make a difference in the institution’s earnings.

[onyx88]

herald_day,

hi cabalen!! okarin ka king angeles?

sabi nila FAD lang ang zagu. pero i think up to now okay pa rin naman *** company. pumipila parin kami pag bumibili sa school. research ka lang ng mabuti para no regrets. apply kana sa SM Clark. this year magoopen yun. goodluck!!

[herald_day]

herald_day,

hi cabalen!! okarin ka king angeles?

sabi nila FAD lang ang zagu. pero i think up to now okay pa rin naman *** company. pumipila parin kami pag bumibili sa school. research ka lang ng mabuti para no regrets. apply kana sa SM Clark. this year magoopen yun. goodluck!!

ok ku mu parekoi.. oo nga ang lakas nung nasa harap ng Jenra Mall noh? dun nga ako na-inspire eh.. biruin mo di umaalis *** mga tao dun di ba? de numero... noon din nga kala ko FAD lang din sya.. pero ng tumagal.. parang pang long term business din sys.. unfortunately nakahold ng *** franchising nila.. sa SM naman.. ang mahal kse eh... ewan ko.. ang hirap ng buhay parekoi!

[herald_day]

herald_day,

hi cabalen!! okarin ka king angeles?




ken kung Pampang Road parekoi.. ika nokarin ka? ika pin ba itang babalak magcofi shop? potang mamuklat ka tambay ku karin ha... hehe.. sanu palang kunan mung shop?

[onyx88]

sa tingin ko naman kahit hindi sa mall situated ang zagu okay pa rin ang sales. maganda din ilagay yun sa schools. try mo sa AUF baka merong for lease dun.

keng kung capas. malapit kami mabalacat. wa sige invite daka murin nung mituloy ya ing coffee shop ku.:)

[onyx88]

let me repost what i've read in the young entrepreneur's thread.

the speaker is the one im referring to as whom i have met and is featured in the 50 top entrepreneurs of the entrep mag. he is very credible. he knows what he is saying. nothing is more inspiring than listening to a person who knows the real deal. someone who talks based from his own experience and field of expertise. im sure we will all learn a lot if we'll join the seminar.




http://i9.photobucket.com/albums/a99/omengski/logo_for_web.jpg

Wanna know the Winning Formula of a Franchise Enterprise?

Successful franchisor, Mr. Ricardo Z. Cuna, President of Fiorgelato will share his winning formula on the 9th Kapihang Entrepinoy of the Center for Small Entrepreneurs dubbed as “Business by Choice, Not by Chance – Franchise!”

The 9th Kapihang Entrepinoy aims to provide micro-entrepreneurs and wanna-bes the basic and comprehensive information on the Franchising Business from the experts themselves.

This quarterly event will be held on March 23, 2006 form 8:00 a.m. to 4:30 p.m. at the Senden Hall, Asian Social Institute Bldg., 1518 Leon Guinto cor. Escoda Sts., Malate Manila.

For details please call (02) 525-6268, (02) 524-1879, e-mail cse@csentrepinoy.org.ph or log on to www.csentrepinoy.org.ph


Rationale:

With all the attention entrepreneurship is getting, a lot of people would like to be this country’s wealth creator. Problem is, they either do not know where to start or what opportunity to grab!

Getting into business is a choice one has to make. After arriving at a decision, one is left with two options: start your own or join a company who already has a growing business.
One is a trial and error thing while the other one is getting into a business tried and tested in the market.

This is what franchising is all about: avoiding the pitfalls of getting into a business unprepared by getting into a business that already has a proven track record and a vast market share.

The 9th Kapihang Entrepinoy is geared towards helping entrepreneurs and would-be entrepreneurs decide on a viable business option. Dubbed as Business by Choice, Not by Chance: Franchise!, the Kapihang Entrepinoy aims to enlighten micro-entrepreneurs on the advantages of getting into a franchise business and be aware of the wide array of business choices they can make in starting a business. Who knows, some entrepreneurs might even learn a trick or two on how to franchise their businesses!

[soy_rico]

soy_rico,

ill PM you the article. sana lang it's not true or the case is not that severe.


of course ill invite you if it will push through.



as usual matagal na naman makakuha ng magandang location. at matagal din naman bago ko napili yung coffee shop na ifafranchise ko. madugong research din at sangkatutak na interviews at meetings. pero at least naapprove na yung application ko. location nalang ang kulang.

ayoko namang mapabilang dun sa mga sad stories na naishare dito.

have you tried holy kettle corn?



mukhang interesting yang "article" n sinasabi mo ...hehehe san m pm mo soon.

i've heard about holy kettle corn but not tired it. teka, yun b ang product ng RFM? nalilito ata ako... meron ding corn kettle di b ? hahaha:rotflmao:


nag inquire din ako s zagu...and yes stop nga muna sila s pag bigay ng franchise.

[onyx88]

soy_rico,

ok ill PM it now.

holy kettle corn is by blue corp. not RFM. chiongbian and alipon are the owners of the business. i think they are doing well.

yes, meron ding kettle corn. actually kapitbahay or basta katabi ng cart ko yang kettle corn. dati joey's snack express ang name nila. di ko pa alam kung bakit sila nagpalit ng pangalan. pag natiyempuhan ko *** operations manager nila ill ask him.

[soy_rico]

up lang natin ito...hehehe *okay*


kita ko ito s young entreps thread
------------------------------------------------

Dear friend of Entrepreneur Philippines,

Want to know the secrets of money-making?

Then join Entrepreneur Philippines' 54th Networking Night entitled "Money-Making Secrets of the Young & Rich" on March 28, 2006, 6 PM to 9 PM at the Asian Institute of Management (AIM) Eugenio Lopez Foundation Bldg, 123 Paseo de Roxas, Makati City, and discover how you can earn more money while you're young.

The Networking Night is a casual business get-together hosted by Entrepreneur Philippines Magazine and is open to both existing and aspiring entrepreneurs. This month, we have invited holiday entrepreneurs JayJay Onrubia of Schu, Bernadette Escudero of Penang Hill, and Jose Mari Quibilan of Scents and Blends to provide tips and share how they got to be successful at a young age!

A copy of the March or April Entrepreneur magazine will serve as your entrance ticket. Food and drinks are on us. Please confirm your attendance at least 2 days before the event.

Should you wish to participate, please send an email with subject: Networking Night to blaise.rodriguez@summitmedia.com.ph or call us at 631-8971 loc.146.

Thank you and hope to see you there!


Blaise Rodriguez
Jr. Marketing Associate

[soy_rico]

anyway guys... anyone planning to attend ?

[soy_rico]

up lang natin :)

[DaNa8]

You guys might be interested...

The MICRO NEGOSYO FAIR ( GO NEGOSYO PART 2) will be held at the PHILIPPINE ARMY GYM, FORT BONIFACIO, TAGUIG on March 31-April 1, 2006 from 9:00 am to 6:00 pm.
Highlights of the events:

* Foodcarts of different categories will be there like:

waffle
ice cream
dimsum
kikiam
inihaw
balut
shawarma
fresh potato ribbon chips
halo halo
turon and banana que
foodcart makers
chicken carts
and many other

plus foodcart seminar " HOw to successfully start your own foodcart business"

Be there and be a part of the MOST EXCITING AND PROFITABLE EXHIBIT in town.
GO NEGOSYO NA. MAGNEGOSYO NA.

SEE YOU THERE.

[mindingmybiz]

Hello to all!

I have good prime commercial spaces in Legaspi Village, Ortigas Centre and the Fort for friends you may know who are interested in operating a laundry franchise in these areas.

Drop me a line guys laundrydirect@yahoo.com; 0922.889.0817; 0917.327.1731

Regards, :bashful:

[CaRaMBa]

The idea of getting a small franchise has been in my radar for a long time now. Anyway, how does one make with the small carts? How long until I get to ROI? :)

[onyx88]

herald_day,

baka maging tenant kami sa SM Clark. next week baka magmeeting na kami. PM nlng kita pag natuloy. malapit ka lang ba dun?

[soy_rico]

i saw this post in

http://www.entrepreneur.com.ph/board/index.php?topic=13945.0


GUIDES IN MALL LEASING


1. Prepare a Letter of Intent (LOI)
This document is crucial to your application as it introduces you and your business to mall management. The LOI states your intention to lease space and describes your business concept, including product line, pricing, packaging and marketing, cart design, power requirements, brief background on operational procedures, contact numbers, etc. Depending on how the letter is composed, this could lead to capturing the interest of mall management and being invited for an interview and product evaluation.
2. Product Testing and Interview
Once you have the mall management’s attention, they will schedule you for an interview.
Here, you will be expected to demonstrate, exhibit, or let them sample your products. It would be advisable to be in your best element during this day, and to ensure the following are ready:
2.a) Documents: product concept, cart design, etc.
2.b) Products: meticulously prepared beforehand
2.c) Staff: well-briefed, well-groomed and in uniform
2.d) Operational flow: how products will be prepared and served
2.e) Marketing materials: how products will be presented in the mall
2.f) Prayers: for mall management to approve your concept
3. Approval
After the interview and evaluation, it generally takes two to three weeks before mall management comes up with their decision. Normally, the business owner receives an offer sheet from the mall management, indicating the rental fee, area size, actual location, security and advance deposits required, lease term including commencement and duration, other requirements and special conditions.
Lessees are usually given five days to conform to the offer sheet. Make sure to clarify any points you are unsure of before signing the lease agreement. To help you make your decision about the particular space offered to you, let me offer some tips on site evaluation:
• Go to the actual site and do a body count/foot traffic on an hourly basis then add up the total number of people who pass by within three to five feet of your actual site. Multiply the total by two to five percent. The result will be the number of your probable buyers.
• Ask around and investigate how much your would-be neighbors make on a daily basis.
• Try to get the total number of foot traffic going to the mall. You may get this information from the leasing department or mall management. With this data, you can now make your own feasibility study, and help you decide whether the space will bring in enough income for your business.
4. Space Acquisition
Once you have agreed to the conditions stated in the offer sheet and have officially acquired the mall space, you are now ready to operate your business. To ensure that your business is smooth sailing in the mall, it is important to keep a good relationship with mall management, by doing the following:
• Be a good tenant. Always pay your rent on time.
• Be a good neighbor. Always make sure that you follow house rules and zoning regulations. This includes keeping your area clean and not frying in a no-cooking zone.
• Be a team player. Join and support their marketing activities such as mall wide sales, promos, etc.
• Be friendly. Call Leasing once in a while to say hello and find out if they have any concerns regarding your lease or your business. Unless you are a big tenant, do not throw your weight around like you own the mall. With the queue of prospective tenants waiting for a slot, management might just replace your business with another one if you are too much trouble.
• Be thankful. Remember, securing a space in a mall is not a benefit; it is a privilege.
Maintaining a good relationship with mall management will make it easier for you or your other businesses to secure mall space in their chain of malls. Word may even spread to other mall chains of your good record as a tenant.




these numbers might help: Ayala Land Inc.
Commercial Centers Group
Francisco Ma. D. Roxas
Senior Division Manager for Operations
Tel.: 752-79-89
Fax: 752-7998
Shangri-La Plaza Corp.
Tenant Management Division
Hazel del Castillo
Tenant Relations Manager
Tel.: No. 633-78-51 local 129
Robinson's Land Inc.
Commercial Centers Division
Minda Carpio
Vice President for Leasing
Tel. No. 632-06-65
Tel: 633-76-41 local 107

[soy_rico]

saw this post again from the same site:


http://www.entrepreneur.com.ph/board/index.php?topic=13597.0


with assets worth P3 million or less, we could register our businesses on BMBE. Tax exempted na tayo at marami pang benefits. basta punta ka lang sa city hall ng municipality nyo at hingi ka ng registration form. now this is what i call, outsourcing the Accountants in SME level.

Requirements:

for new applicants with assets worth three hundred thousand pesos (P300,000) and less:
1) Registration as a business entity or enterprise from the appropriate government agency (e.g., Securities and Exchange Commission (SEC) registration in the case of corporation, partnership or association; Cooperatives Development Authority (CDA) registration in case of cooperative; Department of Trade and Industry (DTI) business name registration in the case of sole proprietorship); and

2) Mayor's Permit or City/Municipal Business Permit.

for new applicants with assets worth three hundred thousand pesos (P300,00) up to three million pesos (P3,000,000)-

1) Registration as a business entity or enterprise from the appropriate government agency (e.g., Securities and Exchange Commission (SEC) registration in the case of corporation, partnership or association; Cooperatives Development Authority (CDA) registration in case of cooperative; Department of Trade and Industry (DTI) business name registration in the case of sole proprietorship);

2) Taxpayer Identification Number (TIN);

3) Certificate of Registration from the Bureau of Internal Revenue;

4) Mayor's Permit or City/Municipal Business Permit;

5) Sworn affidavit executed by the sole proprietor or the President of the enterprise, as the case may be, that the enterprise is barangay-based and micro-business in nature and scope, in substantially the form attached as Annex "A";

6) Sworn Statement of Assets and Liabilities showing the values of assets owned and to be used in the conduct of business, whick shall be supported by pertinent information such as the date of acquisition cost and depreciated value. I the case of asset acquiredduring the year of registration, it shall be supported by any of the following:

6.1) invoice
6.2) official receipt
6.3) contract document of deed

7) Pictures of the place of business and it's assets, other than cash, receivables and intangibles;

Copy of Loan Contract/s, if any, and Duly-Notarized Certification of Amortization Payments on the loan; and

9) Income Tax Return (ITR) with proof that it has been duly filed with the BIR, including attachments, if any, (for an existing business only).




INCENTIVES AND BENEFITS

SEC. 7. Exemption from Taxes and Fees. - All BMBEs shall be exempt from income tax for income arising from the operations of the enterprise.

The LGUs are encouraged either to reduce the amount of local taxes, fees and charges imposed or to exempt the BMBEs from local taxes, fees and charges.

SEC. 8. Exemption from the Coverage of the Minimum Wage Law. The BMBEs shall be exempt from the coverage of the Minimum Wage Law. Provided, That all employees covered under this Act shall be entitled to the same benefits given to any regular employee such as social security and healthcare benefits.

SEC. 9. Credit Delivery. - Upon the approval of this Act, the Land Bank of the Philippines (LBP), the Development Bank of the Philippines (DBP), the Small Business Guarantee and Finance Corporation (SBGFC), and the People's Credit and Finance Corporation (PCFC) shall set up a special credit window that will service the financing needs of BMBEs registered under this Act consistent with the Bangko Sentral ng Pilipinas (BSP) policies, rules and regulations. The Government Service Insurance System (GSIS) shall likewise set up a special credit window that will serve the financial needs of their respective members who wish to establish a BMBE. The concerned financial institutions (FIs) are encouraged to wholesale the funds to accredited private financial institutions including community-based organizations such as credit, cooperatives, non-government organizations (NGOs) and people's organizations, which will in turn, directly provide credit support to BMBEs.

All loans from whatever resources granted to BMBEs under this Act shall be considered as part of alternative compliance to Presidential Decree No. 717, otherwise known as the Agri-Agra Law, or to Republic Act No. 6977, known as the Magna Carta for Small and Medium Enterprises, as amended. For purposes of compliance with Presidential Decree No. 717 and Republic Act No. 6977, as amended, loans granted to BMBEs under this Act shall be computed at twice the amount of the face value of the loans.

Any existing laws to the contrary notwithstanding, interests, commissions and discounts derived from the loans by the LBP, DBP, PCFC and SBGFC granted to BMBEs as well as loans extended by the GSIS and SSS to their respective member-employees under this Act shall be exempt from gross receipts tax (GRT).

To minimize the risk in lending to the BMBEs, the SBGFC and the Quedan and Rural Credit Guarantee Corporation (QUEDANCOR) under the Department of Agriculture, in case of agribusiness activities, shall set up a special guarantee window to provide the necessary credit guarantee to BMBEs under their respective guarantee programs.

The LBP, DBP, PCFC, SBGFC, SSS, GSIS, and QUEDANCOR shall annually report to the appropriate Committees of both Houses of Congress on the status of the implementation of this provision.

The BSP shall formulate the rules for the implementation of this provision and shall likewise establish the incentive programs to encourage and improve credit delivery to the BMBEs.


*BMBE Application fee: P1,000

[aphyist]

hi guys! anyone here who has contact infos on bazaar organizers and weekend markets as well? thanks po...

[blackhawk]

hi guys! I need to make a LOI to put up a small booth from a school canteen? Do you have any samples of LOI or any information that can help me to create a LOI? Wala po kasi akong business experience. Please email me some samples. bhoiebis@hotmail.com Thanks.

[onyx88]

GRAND OPENING of SM CLARK, Pampanga will be on May 12!!!

see you there!!!