MANILA, Philippines—Recent statistics from the Philippine Overseas Employment Agency have revealed that there are more than 8.7 million overseas Filipino workers (OFWs) deployed in various parts of the world.
However, this huge number has been shrinking by the minute as the economic crisis translates into more job losses for OFWs around the world. It is for this reason that OFWs and their families should start exploring new means of securing their future. To those who have no idea where to start, franchising may just be the perfect option.
Lucrative, convenient, and perfect for people with capital to spare, franchising refers to an individual operator’s use of an existing brand and business model in exchange for a percentage of gross monthly sales, royalties, or other fees payable to the franchisor.
Initial investments for franchising opportunities may vary depending on the terms of the franchisor, and the product line in consideration. In the Philippines, capital may range from a few thousand pesos to a few million, depending on the franchise’s commercial prominence, inclusions, and other terms and conditions.
Franchise opportunities come with tried and tested entrepreneurial models that have successfully grown a once singular business unit into a full-blown network. This allows investors to project the return of their investment, thus helping them assess the probabilities of gain or loss. In the case of OFWs, a good franchising model can spare them from losing hard-earned capital that was accumulated through years of overseas employment.
Instant name recall is also a perk that comes with a good franchisor. Instead of exerting much time and effort in introducing a new brand to the public, a franchisee has the advantage of being associated with an established brand.
Nevertheless, entrepreneurs and OFWs must still bear in mind that franchising may still pose a great challenge, especially to those who lack understanding and preparation. Some deals charge for franchise fees and yet are not inclusive of marketing support, staff training, manpower services, equipment, fixtures, and other elements that are integral to full operations.
What’s more, this may require additional capital that the franchisee is not prepared for. As a result, the franchisee may end up possessing the rights to use a certain brand, but lacking the means to turn it into an income-generating venture.
To avoid this, OFWs may opt for turn-key franchising, or deals that come complete with all the elements needed to jumpstart the business.
A good example is the business model of PR Gaz Haus, the country’s only bulk and retail company that offers door-to-door LPG services. Aside from providing rights to use its brand name, PR Gaz Haus will also provide site evaluation and selection, architectural design, retail outlet construction supervision, supplier program, bulk price purchasing, and franchise operations manual.
Franchisees will also get to enjoy extensive hiring and training programs for their employees, preopening and grand opening assistance, and other kinds of marketing support.
And while all these sound good, potential investors must also take into consideration that turn-key franchising will require larger sums for capital.
To learn more about turn-key franchising and related business ventures, interested parties may attend the upcoming Franchise Expo which will be held on July 3 to 5 at the SMX Convention Center. The event will be composed of reputable franchisors who can educate potential franchisees on lucrative opportunities that they may invest in.
Indeed, it is high time for OFWs and other entrepreneurs to start considering the rewarding possibilities a good franchising opportunity can offer.
These include a solid investment, a steady source of income, and more importantly, a perfect starting point for people who want to build their future right in the comfort of their own nation—crisis, or no crisis.
