Thursday, 25 June 2009

Philippine franchising sector surviving, thriving

Abigail L. Ho
Philippine Daily Inquirer
http://business.inquirer.net/money/topstories/view/20090624-212243/Franchising-sector-surviving-thriving

MANILA, Philippines - Despite the economic crisis, the local franchising industry expects to still expand and even extend its reach to foreign markets.

According to Philippine Franchise Association chair and Francorp Philippines chief executive Alegria Limjoco, the industry remained optimistic despite the overall doom-and-gloom situation, as the franchising business was not likely to be as hard hit as other industries.

She related that when the Asian financial crisis struck in 1997, the franchising industry showed relative resilience, with both established and new entrepreneurs continuing to invest in the sector.

“Those who bought a franchise in 1997 are now regulars in the golf course,” she said in a statement.

This time around, amid predictions of a slowdown in consumer spending due to the global recession and the spread of the A(H1N1) flu virus, she said the industry was unlikely to suffer “enormous future decline.”

The franchising industry, in fact, could provide returning overseas Filipino workers and even retrenched workers the opportunity to remain productive and generate much-needed income.

“Franchising does well in good times, and even better in challenging times,” she said.

“With our young and large population whose needs are fully matched by the products and services of the highly creative members of the PFA, market demand will remain up and the economy can post decent growth,” she added.

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