With the Philippines now enjoying the title of being the Franchise Hub of Asia, Filipino companies are expected to become the rising stars in the franchising sector in the region.
There are more than a dozen companies that the Philippine Franchise Association (PFA) found to be the next big things in the franchising world, which is expected to be disrupted by the ongoing digitization of the global market.
“Food will continue to be the largest segment in franchising. After food is retail, then, in a city where people have very big disposal income, we have services like health and beauty, clinics, beauty salon,” PFA Chairman Emeritus and Francorp Philippines Chairman Samie Lim emphasized.
With the Philippine economy growing at an annual average of 6 percent, Filipinos’ spending power is also expected to rise. This, in turn, will allow services and retailing companies to flourish in an emerging country like the Philippines, added Lim, the “Father of Philippine Franchising.”
At the “Meet and Greet with 15 New Home Grown Brands Now Ready for Franchising” press conference and media launch of Francorp’s Franchise Quality Seal at the Francorp Philippines booth at the recently concluded Franchise Asia Philippines 2016 International Expo, which ran from July 22 to 24 at the SMX Convention Center, entrepreneurs like Monica Maceda-Ilacad of I Do Nails, Klarisse Yu Tabao of Eyebrowdery, Catherine Eunice Pangan of Derm Asia and Snooky Salazar of Skinoveau said it is for these reasons that they decided to seek the help of the franchise experts—the PFA and Francorp Philippines—to open up their businesses for franchising.
“I Do Nails started in 2010, when I was in college. Now we have two branches in Metro Manila, and we’d like to expand to a maximum of five this year through franchising,” company president Monica Maceda- Ilacad said.
I Do Nails is a nail salon that uses only organic products for its services, such as nail arts, foot spa and others. It also offers spa parties for bridal showers, pre-prom gatherings, corporate events and birthdays on its homey locations. Eyebrowdery, on the other hand, offers 3D permanent makeup to high-end clients. It offers eyebrow grooming to both men and women, and specializes on eyebrow embroidery.
“We started in March 2015, then clients started asking if we were open for franchise. We want to open franchise branches in key cities, such as Cebu, Davao, Quezon City and Alabang,” Klarisse Yu Tabao noted.
Derm Asia offers a whole range of services from basic facial treatment, micro-dermabrasion, tripollar radio frequency and IPL laser hair removal. It incorporates facial massage in all of its services.
“We started as a supplier of beauty products, until we decided to set up our own clinic on Visayas Avenue in Quezon City,” Derm Asia President Cathy Pangan said. “Currently, we have a lone clinic that offers skin services.”
What is unique about Derm Asia is that it incorporates facial massage to all of its treatments, which, according to Pangan, is one of the secrets to having a younger-looking face.
“We want our customers to experience more than just a facial treatment, wherein there would be pricking, mask application and all that. We want our clients to experience what we call a relaxing facial through a facial massage,” she enthused.
Skinoveau is a skin clinic that offers a patented cream-based skin blemish removal, and noninvasive treatment done under the highly skilled hands of skin professionals.
“Nobody should have to live with blemishes. Nothing should stand in the way of blemishes—not fear of pain, not shame, not access, or affordability,” company president and owner Snooky Salazar said, as she stressed that they remove unwanted skin growth through safe, nonsurgical, painless methods with scarless and effective results. These are four of the emerging brands that the franchising industry will see booming in the coming years. Under food, the PFA and Francorp believe that Frostbites, Taco Boy, Turks, Bente Silog, Citrus Zone, Johann Coffee and Beverages and Choobi Choobi will flourish in the next few months.
Frostbites is an emerging business founded in Cebu. Customers can enjoy customized ice-cream sandwiches with over 10 ice-cream flavors and several “buns” to choose from.
Taco Boy, on the other hand, is a Taqueria that offers, well, tacos and other treats. It has different stores across Davao.
Turks is a shawarma stall that now has over 40 outlets across Metro Manila and nearby provinces.
Bente Silog is a food stall which serves P20 silog (garlic fried rice or sinangag, and fried egg) meals, perfect for the budget conscious. There are 38 branches of Bente Silog all over Luzon, and only four of them are company owned. Citrus Zone is a fast-rising franchise cart that offers customers tart but sweet, freshly pressed lemon or dalandan juices.
Johann Coffee and Beverages was brewed together to make perfectly handcrafted coffee and beverages available and affordable for everyone. Choobi Choobi is a Filipino seafood restaurant whose specialty are shrimp dishes.
For retail, the PFA and Francorp believe that franchisees will see the huge potential of emerging brands such as Trendline, White Aura, A Valen Antoine Footwear, and Kamalig Pets and Poultry Supplies.
Trendline, a known brand in the department store and grocery business in Northern Mindanao, is the authorized retailer of well-known brands, such as Levi’s, Dockers, Penshoppe, Walker and Handford.
White Aura offers beauty soaps that are especially formulated to help users achieve fairer skin, and have a youthful glow. The company will soon launch other products, such as serums, sunblock gels, lotions, scrubs, toners and deodorants.
A Valen Antoine Footwear is a sandal store that specializes in custom-made footwear designed with natural gemstones, semiprecious stones, Swarovski crystals, acrylic and wooden beads, combined with thermal nylon, genuine and synthetic leather, and high-quality rubber soles. Kamalig Pets and Poultry Supplies is one of the premier feeds, medicines, supplements and accessories providers for pigeon hobbyists, poultry and hog growers, and fowl raisers. It is the only provider in the Philippines specializing in custom-made feeds.
Under services, the PFA and Francorp said the brands that will be the rising stars of the Philippine franchising industry this year are Skinoveau, Derm Asia, Eyebrowdery, CBE Estrada Pawnshop, Readsmart Learning Center, Citihub and I Do Nails.
Estrada Pawnshop is one of the pioneers in the pawnshop industry in Pangasinan. Compared to its competitors, it uses advanced information-technology systems for fast and organized transactions.
Readsmart Learning Center was established in 2012, which offers before-and-after school enrichment programs that go with the tested pre-school curriculum. It aims to develop children’s love for reading.
Citihub is a franchising company that offers customers container-van dormitories at a very low price. These dorms—complete with all home amenities—are built for transients and migrant workers.
There are 1,400 franchise brands in the Philippines today. These brands are just a few of the franchise companies that have been awarded the Franchise Quality Seal from Francorp.
At the same time, Francorp Philippines launched the Franchise Quality Seal to ensure franchise excellence in the country and to set the benchmark for quality among its franchise clients. The Franchise Quality Seal is a seal of excellence that is awarded to serious franchisers that are growing their businesses under the highest standards of quality. It will serve as a testament to the quality of the franchise program and to the franchisor’s credibility—two key considerations that potential franchisees look for in a franchise business—more trust from potential franchisees can only spell further growth for any franchisor.
“It will also give you an edge over your competitors, as your brand will now be associated with big brands like Jollibee, Max’s Fried Chicken, Goldilocks, The Generics Pharmacy and Potato Corner, just to name a few, all of which have been developed by Francorp Philippines into strong franchise businesses,” Francorp Senior Vice President for Marketing and Strategy Sam Christopher Lim stressed.
The Franchise Quality Seal will be the viable mark that will serve as a testament to Francorp Philippines’s legacy as a developer of notable franchise brands.