A short presentation on understanding Franchising by Raffy G Canare

1. FRANCHISING…
An Option to become an Entrepreneur.
By:
Association of Filipino Franchisers, Inc.
(AFFI)
www.affi.com.ph
www.affiphilippines.mobi
Promoting World- Class Filipino Entrepreneurs

2. Raffy G. Canare, TM
National Executive Director
Association of Filipino Franchisers, Inc.
(AFFI)
www.affi.com.ph
www.affiphilippines.mobi
Promoting World- Class Filipino Entrepreneurs

3. A HAFFI FAMILY
The AFFI NATIONAL BOARD of DIRECTORS
www.affi.com.ph

4. Eat Bulaga NEW AFFI MEMBER
www.affi.com.ph

5. The AFFI Secretariat Office takes charge of
managing the policies and projects of the
Association of Filipino Franchisers Inc.

6. Association of Filipino Franchisers, Inc.
 The Association of the Filipino Franchisers Inc. (AFFI)
is the Philippines‟ prime trade organization committed to
promoting responsible micro small medium enterprise
businesses through franchising. It is consist of Filipino
corporate presidents, CEOs, and prominent
businessmen who recognize the competitive potential of
the local franchising industry in the global market.
www.affi.com.ph
(02) 654.03.45 | +639062456045

7. Association of Filipino Franchisers, Inc.
Serves as the governing body that safeguards
the interest of its members and innovates ways to
further its advocacies.
www.affi.com.ph
(02) 654.03.45 | +639062456045

8. Exploratory Questions
Do you want to go into NeGOsyo?
Do you have FUND?
How much are you willing to invest?
Where to get FUND?

9. Seize „d Day!

10. Promoting World-Class Filipino Entrepreneurs!
Raffy G. Canare, Executive Director
www.affi.com.ph
(02) 654.03.45 | +639062456045

11. www.affi.com.ph
(02) 654.03.45 | +639062456045

12. www.affi.com.ph
(02) 654.03.45 | +639062456045

13. www.affi.com.ph
(02) 654.03.45 | +639062456045

14. AFFI Center for Franchising
www.affi.com.ph
(02) 654.03.45 | +639062456045

15. What is Franchising?
- Is a business practice that an individual can
use; a Business System that is proven
successful.
www.affi.com.ph
(02) 654.03.45 | +639062456045

16. “A franchise operation is a contractual relationship between the
franchisor and franchisee in which the franchisor offers or is
obliged to maintain a continuing interest in the business of the
franchisee in such areas as know-how and training; wherein
the franchisee operates under a common trade name, format
and/or procedure owned or controlled by the franchisor, and in
which the franchisee has or will make a substantial capital
investment in his business from his own resources.”
- Definition by International Franchise Association
www.affi.com.ph
(02) 654.03.45 | +639062456045

17. Why Franchise?
-According to study, 90% Success Rate
-Proven Brands
-With Established Business System Operation
-Much Better than Traditional Business/ Establishment.
www.affi.com.ph
(02) 654.03.45 | +639062456045

18. Basic Terminologies:
Franchiser: The person who developed and
owned the Business System.
Franchisee: The person who wishes to
adapt, pay the system under a registered
trade mark and brand following all the
policies and conditions set by the Franchiser
stated in the Franchise Manual.
www.affi.com.ph
(02) 654.03.45 | +639062456045

19. Basic Terminologies:
Franchise Manual: The Business Operations
Bible
Franchise Contract: The Document that states
the conditions and agreement both accepted by
the Franchiser and Franchisee.
www.affi.com.ph
(02) 654.03.45 | +639062456045

20. 3 Kinds of Franchising
1. Product Distribution
2. Business Format Franchising
3. Management Franchise
www.affi.com.ph
(02) 654.03.45 | +639062456045

21. 1. Product Distribution
i. Supplier- Dealer Relationships
ii. Sells the Franchiser’s Products
www.affi.com.ph
(02) 654.03.45 | +639062456045

22. 1. Product Distribution
Ex:
www.affi.com.ph
(02) 654.03.45 | +639062456045

23. 2. Business Format Franchise
Integration of FULL Business Operations
and System that includes but are not
limited to:
Operations Business Development
Marketing Sales Retailing
Logistics Supply Chain Management
www.affi.com.ph
(02) 654.03.45 | +639062456045

24. 2. Business Format Franchise
Ex:
www.affi.com.ph
(02) 654.03.45 | +639062456045

25. 3. Management Franchise
The FRANCHISEE provides
management service and expertise using
the Trademark and Business Name of
the Franchiser.
www.affi.com.ph
(02) 654.03.45 | +639062456045

26. 3. Management Franchise
Ex:
www.affi.com.ph
(02) 654.03.45 | +639062456045

27. Franchise Investment Price Range:
Typical Food Cart: P 20k to P 300K
Kiosk: P 100K to P 700K
Services: P 300K to P 10M+

28. Investment Inclusions:
Franchise Fee
Royalty Fee
Initial Inventory
Renovations
Miscellaneous, Legals
Revolving Fund
Rentals and Salaries

29. VS
www.affi.com.ph
(02) 654.03.45 | +639062456045

30. VS
www.affi.com.ph
(02) 654.03.45 | +639062456045

31. VS
www.affi.com.ph
(02) 654.03.45 | +639062456045

32. VS
www.affi.com.ph
(02) 654.03.45 | +639062456045

33. VS
www.affi.com.ph
(02) 654.03.45 | +639062456045

34. VS
www.affi.com.ph
(02) 654.03.45 | +639062456045

35. VS
www.affi.com.ph
(02) 654.03.45 | +639062456045

36. VS
www.affi.com.ph
(02) 654.03.45 | +639062456045

37. VS
www.affi.com.ph
(02) 654.03.45 | +639062456045

38. VS
www.affi.com.ph
(02) 654.03.45 | +639062456045

39. VS
www.affi.com.ph
(02) 654.03.45 | +639062456045

40. VS
www.affi.com.ph
(02) 654.03.45 | +639062456045

41. Are you ready to Franchise?
The JOY of OBEDIENCE is the
SECRET of Franchising
www.affi.com.ph
(02) 654.03.45 | +639062456045

42. Due Diligence
Self Examination
What drives you?
Financial Capacity?
Passion?
www.affi.com.ph
(02) 654.03.45 | +639062456045

43. Due Diligence
Make a list
Industry? Food, Retail, Services?
www.affi.com.ph
(02) 654.03.45 | +639062456045

44. Due Diligence
Study& Survey
Know the products?
Ask the existing franchisee.
Check the market.
www.affi.com.ph
(02) 654.03.45 | +639062456045

45. Due Diligence
Interact
Who is the Franchiser?
Company Profile
Set a meeting
www.affi.com.ph
(02) 654.03.45 | +639062456045

46. Due Diligence
Senses
Try
Test
See
www.affi.com.ph
(02) 654.03.45 | +639062456045

47. Key Factors
Skills
Experience
Capital
www.affi.com.ph
(02) 654.03.45 | +639062456045

48. Summary of Important Details
Franchiser
Legal
Brand
Investment
Market
Support
www.affi.com.ph
(02) 654.03.45 | +639062456045

49. 10IdentificationsofaLegitimateFranchise
Company
1
Legalpapers
andpermitsfromthegovernmentsuchasDTIforSoleProprietor/SECfor Partnershipand
L Corporation, updated Mayor’s Permit, local permits
(Sanitary, Building, Occupancy, et.al.), BIR Registration, Certification from the governing
Government Agency of the business operations (BFAD and DOH for
food, TESDA, DEPED, DSWD and CHED for school and training) and Registration from the
Intellectual Property Office are consistent and registered to the company name and to its
authorizedofficer.
www.affi.com.ph
(02) 654.03.45 | +639062456045

50. 10 Identifications of a
Legitimate Franchise Company
2
E Engaging partnership between
franchiser and franchisee transpires.
www.affi.com.ph
(02) 654.03.45 | +639062456045

51. 10 Identifications of a
Legitimate Franchise Company
3
G Goodbusinessoperationsupportlikelogisticsand
marketingmanagementisextendedtothe
franchisee.
www.affi.com.ph
(02) 654.03.45 | +639062456045

52. 10 Identifications of a
Legitimate Franchise Company
4
I Imperative details of the franchise
agreement/contract are readily available for
review.
www.affi.com.ph
(02) 654.03.45 | +639062456045

53. 10 Identifications of a
Legitimate Franchise Company
5
T Two or more owned outlets and at
least two franchise outlets are
gleaned from the company record.
www.affi.com.ph
(02) 654.03.45 | +639062456045

54. 10 Identifications of a
Legitimate Franchise Company
6
I Important public documents like SEC
Registration, Articles of Incorporation and
Audited Financial Statements can easily
be retrieved.
www.affi.com.ph
(02) 654.03.45 | +639062456045

55. 10 Identifications of a
Legitimate Franchise Company
7
M MembershipfortheAssociationofFilipino
FranchisersInc.(AFFI)signifieslegitimacyofthe
brand.
www.affi.com.ph
(02) 654.03.45 | +639062456045

56. 10 Identifications of a
Legitimate Franchise Company
8
A Accredited list of suppliers are
patronized to ensure the quality of the
products of the franchise brand.
www.affi.com.ph
(02) 654.03.45 | +639062456045

57. 10 Identifications of a
Legitimate Franchise Company
9
T Two or more years of operating under the
same company name weeds out the fly by
night businesses from the legitimate ones.
www.affi.com.ph
(02) 654.03.45 | +639062456045

58. 10 Identifications of a
Legitimate Franchise Company
10
Exactofficelocationisusedforbusiness
E transactions.
www.affi.com.ph
(02) 654.03.45 | +639062456045

59. Avoid Franchise Scam
1. Unknown Brand
2. Legal Papers
3. Unseen Head
4. Marketing Strategy- MLM
5. Not AFFIliated
6. Too cheap… Too Expensive
7. Check the Virus… Ask.
www.affi.com.ph
(02) 654.03.45 | +639062456045

60. Verify if a certain company is Legitimate
CALL:
+63 2 654 o345
+ 63 906 245 6045 02. 751.3330
afficallcenter@gmail.com
www.affi.com.ph
(02) 654.03.45 | +639062456045

61. www.affi.com.ph
(02) 654.03.45 | +639062456045

62. www.affi.com.ph
(02) 654.03.45 | +639062456045

63. www.affi.com.ph
(02) 654.03.45 | +639062456045

64. www.affi.com.ph

65. www.affi.com.ph

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85. www.affi.com.ph
(02) 654.03.45 | +639062456045

86. "It's not who I am
underneath but what I do
that defines me.“
afficenterforfranchising
www.affi.com.ph
(02) 654.03.45 | +639062456045

87. Business Opportunities are visible to
those who can see possibilities even in
adversities.
Maraming Salamat po
Raffy G. Canare, TM
Executive Director, AFFI
RAFFY G. CANARE raffygcanare
Here‟s my number, Call me maybe:
0922. 88. R7A2F3F3I4

88. afficenterforfranchising
www.affiphilippines.mobi
Promoting World- Class
Filipino Entrepreneurs
www.affi.com.ph
(02) 654.03.45 | +639062456045