How do you Choose a Good Franchise in the Philippines

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There are a lot of businesses you can try if you’re looking to have an extra source of income. One of which is that you can be a part of a franchise. However, if you’re low on gas, you might not be able to open a franchise because one of the requirements is quite a huge lump sum of cash. But don’t worry, because there are franchises that require low amounts; there are even franchises that only need at least P200, 000 for you to start. Nevertheless, you need to know how to distinguish a good franchise.


Some businessmen look at the initial price of the franchise as their medium to know whether or not a franchise is good or no. While other businesses look at the longevity of the franchise as well as the products that the franchise offer. But how do you really determine whether or not a franchise is good or not?

Read: Top Brands Of Franchises In The Philippines And How Much They Cost

There are certain indicators that you can consider to know if a franchise is well-established. By looking at the following, you can identify if a certain franchise is within your liking or not. Moreover, you will be able to tell if the franchise you are eyeing at is something that can make you money or not.

Franchise history

One thing that can easily be a determiner is the history of the franchise. You might want to look at how fast the franchise has grown, how the franchise was during its lowest times, and the contingency plan of the franchise whenever there’s a strike in resources.

The business model

Franchising is not merely buying an already established business, it needs to have a business model that is fit for expansion. Wise businessmen take time to create and develop a business model. Adhering to the business model strictly is one part of a successful franchise and execution and products are just another. So, you might want to observe and study the business model of a specific franchise before you get into that franchise.

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If the franchise’s direction is clear

Would you be enticed in franchising a specific brand if you’re not sure what their plan is five to eight years from now? You can look at a franchise as opening the doors of the house to the public; it’s an expansion plan that would both benefit the franchisor and its franchisees. Before the franchisor even opened the business for franchise, he should have knowledge or vision on what will happen if the business expands to its full potential because there are franchisors who don’t want a nationwide expansion.

Read: List of Gasoline Station and LPG Brands That Are Open For Franchise

Communication with other franchisees and the franchisor

Communication, as we all know, is one good aspect in business. This alone can make or break a business simply by improper and insufficient communication. There are franchisors who are open to communicating with everybody while there are franchisors who are always out. Try and research on how the franchisor and other franchisees communicate before joining and setting the franchise up. Before you start, try contacting the franchisor and distinguish whether or not he or she communicates well.

Products, services, and support

Whenever a business grows, the products, support, services, and back office systems should be growing as well. Not being able to grow these can lead to a retarded growth of the business. If you think that the franchisor was able to accommodate these, then you’re in for a good ride. Try and look at how the franchise expands for the time being. By looking at these, you will be able to tell whether or not a good franchise will stand still.

Their criteria in choosing franchises

There are franchises which have selective ways on how they choose franchisees. There are some who value the location, there are some who have bonds; it really depends on the franchisor. However, even though that’s the case, the expansion of a business would really depend on how the franchisor and the franchisees communicate. But the criteria in choosing different franchisees is still a relevant element in making any business grow.

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These things are often overlooked whenever potential future franchisees join a specific franchise. However, people should always remember that a good franchise would still depend on the relationship between the franchisor and the franchisees; it’s not just going to be because of one variable.


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