New franchise concepts are seen generating around P200 billion in sales over the next three years, particularly as more foreign brands eye the Philippines as a market.
These revenues, said Philippine Franchise Association chairman emeritus Samie Lim, would come from new franchises that are expected to be finalized during the Franchise Asia Conference and Expo to be held later this month.
He said a large number of foreign brands, mostly food and restaurant concepts, had confirmed their attendance to the conference and expo, giving local entrepreneurs a chance to explore new franchise businesses.
“At least 100 foreign brands will be coming here for the conference and expo. From Taiwan alone, we’ll be seeing a lot of brands. The Taiwanese market is really growing and many businesses are now going into franchising,” Lim said.
“Malls are starting to be built in Taipei, and the foreign brands that will be coming to the Philippines will be surveying our malls to get ideas. We have a lot of malls here and just one franchise in each of those malls will be significant to those foreign brands,” Lim added.
Lim said PFA expect 50,000 “quality visitors” to the event, or those who would actively inquire about franchising opportunities. Of these 50,000, 100,000 serious inquiries are seen being made, with one person asking about more than one franchise business.
From these 100,000 inquiries, the PFA expects 25,000 leads, half of which should materialize as actual franchises over the next three years. These 12,500 actual franchises would be making an average investment of P4 million each, for a total of P50 billion in new investments.
Investments in franchises range from P2.5 million and below for micro franchises, P2.5 million to P5 million for small franchises, P5 million to P10 million for medium franchises, P10 million to P20 million for large franchises, and P20 million to P30 million for international franchises.
These expected new franchises, Lim said, have the potential to generate around 150,000 new jobs over the next three years.
The 2011 Franchise Asia Conference and Expo will take place from September 19 to 25 at the SMX Convention Center.