Philippine Business Magazine: Volume 9 No. 4 - Editorial
What's in a Name?
By Nonette C. Climaco

Our Cover Story on franchising captures a trend that is sweeping the retail industry today. Franchising has brought many familiar names to the consumer – enabling consumers even in the provinces to enjoy the services of big franchises like Jollibee and McDonald’s. Through franchising, also, internationally-known names like Kenny Rogers, Kentucky Fried Chicken, Mister Donut, and Seattle’s Best Coffee – to name a few — were brought at the doorsteps of Filipinos.

Businesswise, franchising has offered franchise holders a business advantage that goes along with the brandname – technology and a business model for running the enterprise. A natural affinity for services had made Filipinos successful franchise holders. In the case of our featured franchises – Julie’s Bakeshop, David’s Salon, and Eduworld – this means great advantages. A Julie’s Bakeshop franchisee is trained how to bake those hot-selling bread items; a David’s Salon franchisee gets to tap from a pool of salon professionals should any of his own employees fail to report for a day; and an Eduworld franchisee is guided by an operations manual for his own school.

And while obtaining franchises has been one route to success, developing franchises has been the other route. The franchisor is provided the advantage of having his enterprise replicated to reach more consumers — at no cost to him — and also earn from the use of his name. Again, take the case of Julie’s Bakeshop. Starting out as a family enterprise in 1981, it has expanded to over 300 stores through franchising (it just owns two stores).

It is heartening to note that while more foreign franchises are finding their way to the Philippines, homegrown franchises are also mushrooming – proof of the entrepreneurial spirit of Filipinos, a trait that is needed to counter the bearish mood in the other sectors.