PH franchisers expecting up to 20% increase in gross sales

The Association of Filipino Franchisers Inc. (AFFI) is expecting member companies to enjoy a collective increase in gross sales up to 20 percent, reaching close to P130 billion worth of gross sales, a top official said.

John Chung, AFFI President and CEO, told reporters on the sidelines of a press briefing that the AFFI’s growth in terms of gross sales would be supported by the expansions of member companies as well as by the government’s push to support micro, small, and medium enterprises (MSMEs).

“Last year, we were P107 billion in gross sales. I think this will still increase with the government’s active participation in supporting the MSMEs. We want to increase it [this year] at least by 10 to 20 percent with the continuous expansion of our members,” he said.

A 20 percent increase would mean an additional P21.4 billion in gross sales. A 10 percent increase, on the other hand, would lead to an additional P10.7 billion. This means that AFFI’s yearend gross sales could reach over P128 billion.

Chung said this ahead of AFFI’s 16th Franchise and Business Expo at the World Trade Center in Pasay City, which is set on Sept. 29 to Oct. 1.

AFFI’s latest sales prospects come as the association, which is composed by more than 170 member companies, have also been accepting firms that are not franchises since two years ago.

These non-franchise companies, which account for 20 percent of AFFI’s current membership base, are most, if not all, suppliers, he said.

However, in spite of the prospects, Chung, who is both President and CEO of Swiss Fragrances Inc., said that access to loans remains the “number one problem” for franchisers.

“The number one problem of franchises is really the financial aspect. Sometimes, they find it hard to loan from big financial institutions because of there are so many requirements,” he said, adding that the government’s P3 program helps ease the process.

The P3 program, which refers to Pondo sa Pagbabago at Pag-asenso (P3), is a financing program expected to put loan sharks out of business, giving MSMEs access to more affordable credit.

There are two associations representing franchisers in the Philippines, the other one being the Philippine Franchise Association, which Chung said consists “more of the big brands.”

“In our case, we are trying to promote getting the smaller brands especially those with potential,” he said, referring to AFFI which is celebrating its 20-year anniversary this year. /je