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BY Ben Arnold O. de Vera Researcher
The Philippine franchising sector
accounts for a significant part of the country’s gross domestic
product, and is a key driver of the country’s economic growth, the
Philippine Franchise Association (PFA) said.
Local franchising business has
accounted for 5 percent of the GDP for the years 2005 to 2007,
putting in an estimated P106.75 billion to Philippine economy,
according to a collaborative study carried out by PFA and the
University of Asia and the Pacific.
The study also revealed that some
200,000 franchise stores all over the country employs, on the
average, four to five employees per outlet, thus providing jobs to
about one million Filipinos.
PFA also noted that franchising
activity has not only been prominent in the metropolitan areas, but
also in the countryside. “There are many well-known national
brands that originate in the regional areas,” said Bing Limjoco,
PFA chairman, citing Julie’s Bakeshop, which started operations in
Cebu and currently the largest bakery chain in the country.
The PFA study also showed that
many of the prominent local franchises began as small and medium
enterprises until they grew into large-scale corporations, among
which are fast-food giant Jollibee, which started out as an ice
cream parlor, and Max’s Restaurant, which was initially a family
business.
Moreover, some 30 Filipino
franchise companies are expanding overseas, especially in the Asean
region, US, Canada, the Middle East, China, India and UK, said
Robert Trota, PFA president. Trota said that local-based franchisers
such as Red Ribbon Goldilocks, Bench and Kamiseta, among many
others, are already competing globally, adding that Filipino food,
clothing and services franchises are on a par with international
brands.
According to PFA, the Philippines
is now the fourth in the world and the leader in the Asean region in
terms of the number of franchise concepts and franchise outlets.
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