A local franchising expert will offer advice to those seriously contemplating extending a Metro Manila franchise business concept in the provinces.
Armando “Butz” O. Bartolome, the country’s franchising guru and president of GMB Franchise Developers (which has 45 years of cumulative experience in franchising), shares important guideposts before expanding to or operating an autonomous franchise business unit in the province.
He said the runaway successes of various franchised products or services in the metropolis continue to inspire many aspiring entrepreneurs to seek a legitimate franchising business as a viable economic alternative to other forms of entrepreneurship.
Bartolome said among the main considerations in expanding the franchise to the provinces are:
- Understand and observe the culture of the local area you wish to venture into. Just because a franchise concept has succeeded in Metro Manila does not ensure that it will take off in any other locality. Determine if the business concept is new and if there have been similar businesses (or competitors) operating in your desired locality. Failure to understand the values of the people residing or frequenting the place, their behavioral patterns, and purchasing power, will most likely harm your provincial franchise venture. Aside from the accessibility and visibility of the business location, knowledge about the market is crucial. Study the marketplace and try to look for one bold stroke that will produce substantial results, or which will bring in enough business. Prepare a feasibility study if the location will suit the kind of market that the particular franchise is best suited to. You can then determine how you can appeal to certain segments of the population, say, retirees or overseas Filipino workers who abound in a certain provincial area. Along with this, be sure to detail what businesses are nearby, the type of traffic (foot and automobile) that passes by that spot, rent arrangements, future development plans for the area, etc.
It can be a good idea to turn to the franchiser for invaluable input on selecting a good location. In most cases, the franchiser’s experience and knowledge about the market being targeted will help identify the perfect spot for the venture.
- Be sure that you will be able to devote time to the provincial franchised outlet and business. This comes with knowing the nature of the business. For example, a food franchise will particularly require constant attention to detail and continual inventory control. Some franchisers require hands-on management. This means that the franchisee will be required to be in the branch for most of its operating hours, or at least three to four hours a day.
Going the franchising route, more than business acumen requires long-term commitment and a responsible, systematic approach – preferably learned from the experts.
These and more will be shared by franchisers and consultants at the Nationwide Franchise & Education Show for Entrepreneurs – “Negosyo at Edukasyon Para sa mga Entrepinoy” which kicked off this weekend in SM-Baguio. From Baguio, the franchise & education provincial roadshow series will head for San Fernando, Pampanga this April, before proceeding to Marilao, Bulacan; Lucena, Quezon; Cagayan de Oro; and Iloilo in the succeeding months.