Surging demand in the provinces for affordable small business ventures and the underlying shift of overseas Filipino workers to entrepreneurship are driving the annual 20 percent growth of the franchising industry, according to a trade group.
The Association of Filipino Franchisers inc. (AFFI) said its members’ sales reached P80.5 billion, exceeding the P70 billion for all of 2010, and there are still five months left in 2011. The group’s 110 members have 6,600 stores that claim to have created 40,000 jobs nationwide.
Association Chairman Emeritus Teresita L. Ngan Tian said there “is keen interest among overseas Filipino workers to have their business through franchising.” Ngan Tian owns the Lots’ A Pizza brand and co-owns other franchises, including Chichariffic.
From collective sales of P70 billion in 2010, the group’s members already posted year-to-date sales of P80.5 billion in 2011. The group expects a cumulative growth of 25 percent in 2012.
“Judging by the way the industry is steadily growing an annual rate of 20 percent, we might double the strength of the industry in a matter of two to three years,” Ricardo Z. Cuna, AFFI president and owner of the Fior Gelato franchise brand.
Most of association’s members — about 70 percent — are in the food business but the service business is also growing, especially beauty and wellness ventures. — ELR/VS, GMA News