Franchising group’s sales seen to grow 25% in ’12

The combined sales of the members of the Association of Filipino Franchisers Inc. (Affi) are expected to grow by 25 percent this year on increased membership as well as growth of existing members.

Affi executive vice president Ricardo Z. Cuna told reporters on Thursday in a briefing that the initial target was a 15 to 20 percent growth from last year’s total sales of $11 billion, but recent trends made the group optimistic that a 25-percent growth is possible.

This, as 18 more members are expected to join the industry group, which has 80 members, Cuna said.

Member-franchisers said that increasing consumption is also supporting growth across sectors.

Cuna said Affi will induct the 18 new members during the 11th Filipino Franchise Show dubbed “Galing ng Pinoy,” on October 12 to 14 at the World Trade Center in Pasay City.

The group said the franchising sector remains robust as seen in the 17-percent sales growth for Affi members from $9.4 billion in 2010 to $11 billion in sales in 2011.

The total franchising industry accounted for 5 percent of the country’s total gross domestic product, based on a University of Asia and the Pacific (UA&P) report.

While the UA&P report said the bulk of franchises is in the National Capital Region, Central Luzon, Calabarzon and Mimaropa are not far behind.

Western Visayas and Northern Mindanao, meanwhile, top the franchising growth areas down south.

“Franchising has created an estimated 200,000 franchise outlets with an average of four to five employees per outlet. That translates to at least a million job opportunities for Filipinos nationwide,” said Affi president Armando Bartolome.

Organized in 1997, Affi is the country’s premier trade organization promoting micro, small, and medium enterprises through franchising.

The group prides itself on developing successful homegrown franchises such as Goto King, Figaro, Lotsa Pizza and Mang Inasal.