DTI backs traders’ franchise thrust
The Department of Trade and Industry has thrown its support behind the local franchising industry, but admits that it is not in a position to provide the assistance being sought by local franchisers.
Trade Secretary Gregory L. Domingo noted that the agency’s budget is limited, thus curbing the kind of assistance it can provide to local businesses.
“Usually, we can provide some assistance when they participate in trade shows abroad. Depending on our budget, since our budget is limited, we’re able to provide some assistance in terms of footing part of the cost of the rental,” Domingo said on the sidelines of the Franchise Asia Philippines 2013.
“Sometimes, we also assist in the cost of shipping the goods to the exhibition place. But in terms of cash subsidy, we couldn’t give that because we don’t have a funding source for that.”
Samie Lim, chair emeritus of the Philippine Franchising Association (PFA), earlier said that the group is seeking government support in the form of financial aid for local franchises’ participation in various meetings and expos abroad, particularly in Europe and the United States. The group is also seeking search and evaluation assistance, as well as provision of support in setting up business matching activities for potential franchises abroad.
This assistance will allow local franchising firms to prepare themselves for the influx of foreign franchises expected in 2015, when the Asean Economic Community is established.
As the region merges into a single market, each member economy will be flooded by foreign brands.
Although there are a number of brands that have gone global, Lim had said that a lot of local companies into franchising were still not ready for the impact of the Asean economic integration. Amy R. Remo