A franchise is a form of contract arrangement between you and another established business called the franchisor. You, as the franchisee, enter in an agreement to offer the goods and services of the franchisor with the applicable fees.
Franchising is a form of business model that gives you the following benefits:
Lower capital needed. Owning a franchise requires you much less capital than buying one or starting one from scratch.
Lower risk. Franchises are a more secured business because you already have the support and backing of a larger business.
Franchise support. Another benefit you can have when you decide to franchise is the support your franchisor will provide to you. Most franchisors will require you to undergo training before you can franchise the business. You will also have someone already in the field to ask when you have questions.
Advertising and promotion. You can ride on the marketing that the franchisor provide. You have access to the endorsers the franchisor already have.
Brand Equity. When you buy a franchise, you will be provided with the business’ trade name, trademark, and logo. You can leverage on the familiarity and trust that the business already has through the years.
Related read: How to Make Extra Money while Working a Full Time Job
With that said benefits I know you are also thinking of franchising on your own. So in today’s post I will be listing the 10 best franchises under Php 1 Million. Do note that the price included in this post is only franchise fee and subject to change without prior notice.
Let’s start with the food business:
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1. Master Siomai
Siomai and gulaman are such a favorable go-to snacks for Filipinos. It can be eaten as is or as your ulam. Good locations for this franchise business will be schools, transport terminals, and food courts.
Price: Php 280,000
2. Zagu Pearl Shakes
During summer time Zagu Pearl Shakes are just the favorable drink. I remember my high school days when all I need to have a little break is drink something called. One of my favorite Zagu flavor is Sago’t Gulaman. It’s also one of the original business in the franchise industry.
Price: Php 650,000 to Php 850,000
3. Potato Corner
French fries can also be seen as an ideal product to for a franchise. Potato Corner is a well-known brand with long lines in each of the stall whether it be inside the mall or other place. Even if there are other brands of french fries stalls that appeared, Potato Corner is still at the top.
Price: Php 230,000 to Php 800,000
4. Hong Kong Style Fried Noodles & Dimsum
Another well known franchise under Php 1 Million is Hong Kong Style Fried Noodles and Dimsum. This food franchise provide Filipinos an authentic Chinese street food with stir fried noodles and toppings such as siomai and wanton as well as special sauces.
Price: Php 150,000
5. Waffle Time
A well-known affordable snack that appeals not just on kids but also those young at heart are waffles. You can see a lot of Waffle Time kiosk in the malls and terminals. Your franchise fee already includes the equipment you’’ll need, ingredients, and other business support such as training and orientation.
Price: Php 300,000
Here are the non-food business franchises:
6. Bayad Center
With the current pandemic, bill payments can be a hassle. Thus, Bayad Center is a great business franchise especially around your neighborhood. Aside from bills payment you can also offer the following insurance, remittance, loading, and airline ticketing in your Bayad Center franchise.
Price: Php 350,000
7. The Generics Pharmacy
Another great franchise business in this current times is The Generics Pharmacy. The franchise fee includes The Generics Pharmacy trademark, name and logo, pre-opening assistance, extensive training on pharmacy retailing, and guidance on generic drugs.
Price: Php 600,000
8. Automatic Tubig Machine (ATM)
Another business that suddenly boomed and stayed in the market is the Automatic Tubig Machine (ATM). If you are in a neighborhood where clean water can be scarce, this is a great franchise venture. Price:
9. Happy Wash Laundry
Laundry shop can be a good start up business because nowadays. The main target market for laundry shops include busy professionals, those that resides in a condo, apartment, or dormitory, etc. Happy Wash offers laundry shop via franchising. The capital already includes the laundry equipments, trade name and logo, personnel training, etc.
Price: Php 160,000
Rice retailing business is another great franchise option. GrainSmart is one of those that offer that franchise opportunity for Filipinos. It has grown to more than 200 branches nationwide that provide quality rice for a competitive price.
Price: Php 298,000
Related read: 8 Important Reasons To Start a Side Hustle
How To Start Franchising in the Philippines
Here are the general steps you need to take to start franchising a business in the Philippines.
Step 1. Choose the business you would like to franchise
The very first step is to choose the business you would like to franchise. With the many choices available today, here are key questions that can help you to filter:
What your budget is?
Is the business you’d like to franchise really close to you?
How legitimate is the business you’d like to franchise?
What’s the target market? Possible location?
How’s the competition?
Spend as much time as you can in this step. Learn as much as you can in the business you would like to franchise.
Step 2. Initial inquiry and application
Once you have set your heart and mind on what business you would like to franchise it’s time make an initial inquiry. Find our the contact details of the business and do the initial email or call to provide your intent to franchise. You will need to submit documents such as Letter of Intent, accomplished franchise application form, copies of your valid IDs and others.
Step 3. Evaluation
Your application will undergo a screening process with the franchisor. The franchisor may request a meeting with you for evaluation and inspection of your business location. This is also a good opportunity to get to know the people behind the business and ask any questions you still have.
Step 4. Contract signing
Once everything is set, you and the franchisee will do a mutual agreement in the form of contract signing. The contract signing is for formality and further proof that you are now a legit franchisee.
Step 5. Construction and Training
As mentioned, most of the franchisors will require a training with you and your staff on how to handle the business properly. The training time could also coincide with the construction of the place.
Step 6. Soft Launch
Once everything is set it’s time to do a soft launch to the public. This is a good way to gauge if there’s traction in your newly franchised store. Pick a date where people are not as busy. Find ways that you can spice up your soft launch from decorating the store with balloons to inviting an influencer to gain traction.
Step 7. Managing your franchise
Lastly, you’ll have to manage your franchised business well. Continuously learn the market and improve your current service. Market your business well both online and offline. Also, keep track on the update that’s happening in your field and what you can apply for your franchise to succeed.
Final Notes from SavingsPinay
If one of your long term goal is to start a business but you have limited budget and can only spend limited time in planning it, then try consider franchising a business.I personally would love to have my own business franchise in the future as well.
Have you thought of franchising a business?