5 Of The Biggest Franchises In The Philippines And How Much They Cost –For people who have the capital and the drive, yet hardly have an idea how to run a business, franchising is one way to get a feel of being your own boss. “Franchising refers to the method of practicing and using another’s perfected business concept,” explains the Philippine Franchise Association on their website. “In a franchise relationship, the franchisee is granted the right to market a product or a service under a marketing plan or a system that uses the trademark, name, logo and advertising owned by the franchisor.”
In franchising, processing is fast, the risk is low and success rate is high, and with training from the franchise owner to make sure the business floats, you have the potential to earn big along the way.
If you’ve managed to set aside a considerable amount enough tostart your own business, hereare the five of the biggest franchises in the country you may want to consider.
1. Jollibee
If there’s a brand that might almost be synonymous with anything Filipino, it’s Jollibee, the biggest fast-food chain in the Philippines. From its humble beginnings as a mere stall in 1978 to a main driving force in the food industry today, Jollibee has always been true to its roots in offering Pinoy-friendly meals at a very affordable price.
If you want to become a part of Jollibee’s growing empire, you need at least P25 million to start a franchise, according to Pinoy Money Talk. Of course, even with the capital, your application is pending for approval.
If you’re going to do something, make sure to do it right and focus all your efforts on one thing. For the 400-branch strong Potato Corner, the goal has always been serving the public with amazing French fries fresh from the fryer. Just last March, the franchise recorded a record shattering sales of P1 billion since it started.
Do you want an investment that’s as golden as their perfectly cooked fries? Potato Corner’s franchise options range from P200,000 for the smallest cart to around P800,000 to P1.2 million for an inline store with seats. Grab it while it’s hot.
3. 7-Eleven
7-Eleven, one of the premier convenience stores in the country, has been lending their renowned brand to entrepreneurs who wish to become a part of their empire since 1998. According to their website, getting your very own 7-Eleven store means you have to shell out the following: P600,000 for the franchise fee,P170,000 for the initial supplies, P800,000 for the initial merchandise, around P2.03 million for the construction cost, and advance rent and deposit depending on the lease terms. That amounts to aboutP3.5 million for a business that never sleeps.
4. Petron
Petron, meeting almost half of the country’s petroleum needs, has an interesting take in making potential investors join their family, which players may find similar to the way entrepreneurship has been introduced to them by games like Diner Dash: you can start your gas station with 2-3 pumps and increase them should the demand goes up. With a very flexible expansion program offered to franchisees, getting your own Petron gas station can be more alluring than ever.
To start your Petron franchise, you need to have your own lot to build your gas station on, as well as a total investment cost of P1 million to P2.5 million, exclusive of a cash bond of P100,000. Once you’re done, expect your fortune to trickle like black gold.
5. The Generics Pharmacy
Health is wealth, and if you want to invest in an avenue that is perennially needed, then go all in on the health industry, particularly the realm of low-cost generic drugs. Although it has been around since 1949, The Generics Pharmacy only started to open its doors to investors in 2007, making the company spread like wildfire in the next few years.
If you want to invest in a wide range medicines available to the public, the franchising fee for The Generics Pharmacy is P290,000 and the total cost of investment is P750,000. This covers the pre-launch assistance, staff training 15 days before and three days during operation, and other support packages.
The financial requirement ranges from P1 to P5 Million. What is included in the investment? The investment includes the operational rights of the store, equipment and facilities, furniture and fixtures, air-con system, signage, and initial inventory. If I don't have a location can I apply for a franchise?
The financial requirement ranges from P1 to P5 Million. What is included in the investment? The investment includes the operational rights of the store, equipment and facilities, furniture and fixtures, air-con system, signage, and initial inventory. If I don't have a location can I apply for a franchise?
- Initial Store Supplies (Php 170,000.00), Initial Merchandise (Php 800,000.00), Construction Cost (approximately 2.03 Million Pesos), Advance Rent and Deposit (Depending on the lease terms) are settled before opening the store - Total Cash Outlay will range from 3.5 Million Pesos to 5 Million Pesos.
Sometimes the best business ideas with 50K capital in the Philippines are in the food franchising industry. Start small with a food cart franchise. Food carts offering one or two products usually start at a franchise fee of ₱35,000. This package already includes equipment, training, and customer support, to name a few.
From site selection, planning, to construction, up to staff hiring and training, marketing, and daily operations, KFC Philippines will handle full management of your store/stores to reach its maximum potential. How much is the investment required? Franchise investment cost starts at P19 Million.
We provide estimated franchise costs for some countries: - In Philippines, the total investment to start the Jollibee Restaurant is around Php 35 million to Php 55 million.
But the bigger question is: can you become rich by buying into a franchise? The short answer to this is a resounding YES. Investing in a robust franchise business can help you ramp up your income stream, as well as diversify your investment portfolio.
Wealthy franchisees get to do what they want, as much or as little as they want. And they make plenty of money. That doesn't mean trillions of dollars, but relative to what they've invested, they're getting a great return. Wealthy franchisees live well.
On average, typical franchisees make about 80,000 dollars a year, not considering tax and expenses. Only a small part of franchise owners make over $200,000 annually, more than fifty percent of franchisees make about $50,000. The industry you're operating in impacts the amount of profit as well.
You should expect to pay anywhere from $10,000 to $100,000 in initial fees when buying a franchise. You will also pay monthly fees for marketing and royalties. This article is for people who are looking for a complete guide to buying a franchise business.
Owning a franchise unit can be demanding, requiring work of 60 to 70 hours a week, but owners have the satisfaction of knowing that their business's success is a result of their own hard work. Some people look for franchise opportunities that are less demanding and may only require a part-time commitment.
Entrepreneurs looking to finance a franchise transfer typically need to put 20% down, while a new location or start-up business requires 25 – 30% down.
How much does 7-Eleven in the Philippines pay? The average 7-Eleven monthly salary ranges from approximately Php 8,246 per month for Sales Clerk to Php 13,222 per month for Store Manager. The average 7-Eleven daily wage ranges from approximately Php 400 per day for Cashier/Sales to Php 537 per day for Sales Clerk.
On October 26, 1982, Philippine Seven Corp.(PSC) acquired the license agreement to use the 7-Eleven Convenience Store system in the entire Philippines from Southland Corporation of Dallas, Texas.
Station is built and equipped by the company (Shell). Dealer's role is to operate the station and order products from Shell. However, awarding of the station to the Dealer/Operator will be dependent on Shell's decision & availability of a station. Able to invest average Php 5-8 Million initial capital for a station.
Chicken Star Philippines is now expanding business in Central Luzon, North Luzon, Calabarzon and NCR! We offers No Franchise Fee and No Royalty Fee at 350,000.00 as initial capital investment. What are you waiting for?! Invest now and be part of our fast growing chicken business!
Nevertheless, the cost of franchising a coffee shop in the Philippines can range between 182,000 pesos and 445,000 pesos. However, it can also go up to 6 to 12 million if you are investing with more established brands. Learn more about Hills & Valleys, a coffee shop in Bulacan. Are coffee franchises profitable?
A licensing fee is required for Starbucks-licensed stores. The average licensing cost required to open a Starbucks is a $315,000 licensing fee and a net worth requirement of at least $700,000.
Popeyes franchise fast facts: Initial franchise fee: $50,000. Initial franchise term: 20 years. Estimated initial costs: between $235,000 and $454,000.
Some franchisees find that they're working 80 hours a week while they get their businesses up and running. One owner told us, “I stick with half days — 12 hours.” Few find that they're doing only 40 hours a week. The payoff comes a few years later, when they can relax and enjoy the fruits of their labor.
Franchise royalties are usually collected by your franchisor on a monthly basis. Like marketing fees, these fees are based on a percentage of your revenue.
Typically, the franchisee takes home 90% or more of their gross sales, with the remaining 10% going to the franchisor. In this model, the franchisor collects a percentage of total sales, usually between 4-6% of gross sales.
In addition to generating more income, many multi-unit owners appreciate the revenue diversification that comes with managing more than one franchise location. Owning multiple franchises can sometimes mean a safer investment since they don't depend on a single site to make all the revenue.
There's no real consensus on exact franchise success statistics out there, but for years franchises, brokers, and other websites have claimed a 90% to 95% success rate for franchisors.
Less flexibility than running a business on your own.
Some franchisors exert a level of control that you may find too restricting. Franchisees often have restrictions on where they can sell their products or services, as well as requirements on the suppliers to be used or operating hours.
Becoming a franchise owner is not that easy; you have to keep certain things in mind and give your best to become a successful franchise. Buying a franchise requires a lot of research work and networking.
Needless to say, running a franchise as a solo act - or even with great managers - can be an insanely stressful experience. This is why burnout is so common among small business owners who try to take it all on at once.
Most franchise owners don't receive a salary. Instead, your earnings as an owner come from the excess revenue after overhead costs to support the operation of the business are paid.
Franchise employees, much like workers in any other type of business or industry, are paid by their employer. In most cases, this is the franchisee, but in others, it's the franchisor. Those in the franchise business should know the full extent of their payroll responsibilities.
How much does a UPS Store franchise owner make? The UPS Store Owner's average profit per year is approximately $100,000. It takes "about $365,000 in annual gross sales" to produce a modest "$35,000/yr income for the owner" and "about 60% of all US stores do not break even."
Franchise taxes do not replace federal and state income taxes, so it's not an income tax. These are levies that are paid in addition to income taxes. They are usually paid annually at the same time other taxes are due. The amount of franchise tax can differ greatly depending on the tax rules within each state.
Franchising fee: It costs between $25,000 and close to $50,000 for the initial franchise fee. This, too, will vary depending on the details of your specific Taco Bell franchise. Net worth: The current net-worth requirement is around $1.5 million worth of assets.
McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee. Those looking to launch a new McDonald's franchise can expect to shell out between $1,314,500 and $2,306,500. Existing franchise operations can cost upwards of $1 million.
The typical length of a franchise agreement is between five and 20 years. A common reason for this general length of time is often the size of the franchisee's initial investment, though market conditions and the type of franchise can also be factors.
One common misconception when it comes to operating a franchise is that once you sign on the dotted line and open for business, the customers and revenue will start flowing. This is typically not the case. It normally takes a year or two to become profitable.
Franchisees can apply for a commercial loan with a bank of their choice. Approval usually requires a good credit rating and a detailed business plan. Because the federal government backs a portion of SBA loans, they generally have more favorable interest rates and repayment terms than commercial banks loans.
One of the biggest considerations a franchisor makes when examining a prospective franchisee is how successful that person will be in business. There are many factors that are taken into account when making that decision, and one of them is your personal credit history. A bad credit score isn't an automatic denial.
Can you open a franchise with no money? Opening a franchise requires an initial investment. If franchisees don't have the cash to cover the franchise licensing fee and other startup costs, they will have to apply for a loan with the franchisor, a bank or some other lender.
If you've got an entrepreneurial nest egg of around $100,000, you've got a ton of great options for your next business venture. You could start a bakery, brewery or restaurant, get into construction, manufacturing, solar power, healthcare, travel bookings or house flipping.
There are two approaches you could take. The first is increasing the amount you invest monthly. Bumping up your monthly contributions to $200 would put you over the $1 million mark. The other option would be to try to exceed a 7% annual return with your investments.
In 2022, BDO Unibank was the largest company in the Philippines based on profit. In that year, BDO Unibank had a total profit of approximately 904.2 million U.S. dollars. SM Investments came in second with about 781 million U.S. dollars in profit.
Yes, foreigners possessing the 9G visa can start a business in the Philippines. Furthermore, foreign-owned enterprises can invest a small amount for conducting operations in the Philippines.
Introduction: My name is Kelle Weber, I am a magnificent, enchanting, fair, joyous, light, determined, joyous person who loves writing and wants to share my knowledge and understanding with you.
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