MANILA, Philippines—The local franchising industry is targeting a conservative 20 percent growth this year, to be fueled largely by an expected increase in investments made by overseas Filipino workers (OFW).
More OFWs are now said to be looking for such investment opportunities in the Philippines, following the aggressive programs implemented by the Philippine Franchise Association (PFA) and Association of Filipino Franchisers Inc. (AFFI).
According to fast-food firm Binalot, a member of PFA and a founding member of AFFI, local brands may still find growth as the market for goods and services is pushed by the strong peso, even with the increased competition brought on by the booming franchise industry.
With the strong economy, people have more buying power, it said in a statement.
“Indeed, franchising in the Philippines has gone a long way from its beginnings back in the 1980s, with the sector dominated mostly by foreign franchise companies. From around 20 foreign and local franchises, the sector rapidly grew, with the figure reaching around 1,000 by 2008,” Binalot said.
Both PFA and AFFI are nonstock, nonprofit self-regulating governing body for franchising in the country. Established in 1995, the PFA now has 180 franchisers and allied members nationwide. AFFI, on the other hand, was established on 1997 and has grown from seven founding members to over 100 constituents.