The best way to expand business is still franchising: RK

Rudolf A. Kotik, founder of RK Franchise Consultancy and one of the pioneers in Philippine franchising, still believes that franchising is the best way to expand business because it uses other people's money (OPM). Kotik, popularly known for his initials, RK, and Iñaki Gimenez, his partner in Australia visited SBS Radio studio, to discuss the prospects of the business in the Philippines and Australia.

Source: SBS Filipino

Highlights

* More than 1600 franchise company, including 300 foreign, operate in the Philippines.

* "Generally, any business under the sun can be franchised" says RK, "and more than 50 percent of franchises are food-related businesses.

* The best way to grow business is through franchising because of its lower risk, using other people's money (OPM)

* In the Philippines, a minimum investment of P200,000 (or just over $5,000) can allow you to enter into a food cart business

* Franchising in the Philippines is almost unregulated while in Australia it faces lots of legal issues due to its high regulation.

* Tip for a franchisee: make sure the franchise is properly developed, and the franchise needs to have a trademark.