After saving enough money from toiling overseas, you just then decided to invest your hard-earned savings back to the Philippines, where do you put it?
There are, of course, many options.
But if you have a minimum P100,00 and you want to want to be an “entrepreneur,” buying a franchise can be an option.
Franchising continues to be one of the fastest growing sectors of the Philippine economy. Population growth, higher disposable income, consumer preferences, and increased economic activity, especially from infrastructure, have contributed to the growth of franchises in the Philippines. Demand continues to grow especially for innovative products and services.
Rudolf Kotik, of RK Franchise Consultancy, who just visited Sydney and Auckland to give seminars on franchising, says that for a minimum investment, one can be an owner of several businesses through franchising.
“If you don’t have time to operate the business by yourself,” Kotik recommends “you enter into a ‘co-ownership franchise’ deal where you as an investor become a co-owner of a franchise operated by the franchisor, not a franchisee as in an ordinary franchise agreement.”
Kotik says there is a growing success in co-ownership franchise because the owners are hands-on in the daily operations. And the owners are former OFWs who know how to toil and work for their money.
Citing a salon franchise, Kotik says, if you invest P100,000, you can probably be one of the 15 co-owners.
However, Kotik still does not guarantee immediate success as in any business.
And here, he provides tips to avoid a scammer.
- The franchisor operates mostly in the “cart and kiosk” category
- Investment requirements are very, very low as victims may not run after them due to more costly legal expenses
- Promised investment returns are too high.
- Franchise contracts are only good for one or two years.
- Franchise contracts are too short, usually three to four pages
- Be sure the franchisor owns the product trademark.
- Be sure the franchisor is a member of any of the three recognised industry associations – Association of the Filipino Franchisers, Inc ( AFFI), Filipino International Franchise Association (FIFA) and Philippine Franchise Association (PFA)
