Francorp Eyeing Asian Expansion

Our us Asians, franchising is so deeply entrenched in our daily lives. When one hears the word “franchise,” one would probably think of fast food restaurants like McDonald’s, Wendy’s, Starbucks, or 7-11. But unknown to most, franchise businesses extend to more than just fastfood. Homes are bought and sold through franchised real estate companies. These same homes can be cleaned, painted and carpeted through a franchised professional service company. Cars can be purchased, tuned and washed through a franchise. We can have our hair cut, clothes cleaned or pets cared for – all in franchised businesses. We can even travel from one area of the world to another through franchised businesses. This is why it is such a popular method of doing business.

“In advanced countries, almost 40-45% of retail sales come from franchises. As a flourishing industry, the growth of franchising inspired our team of experts to help expand the concept in the Philippines,” said Samie Lim, Francorp Philippine’s founding chairman. “It was in 1995 when we finalized our deal to become a licensee of Chicago-based Francorp International – the top US franchise development and consulting firm known worldwide as instrumental in the growth of franchising in the United States.

Our primary mission then was to assist Filipino companies discover their franchise potential and assist them in rapidly expanding their operations, nationally and international, through franchising,” he added.

A top franchise consulting firm with over 25 years of extensive franchise experience, Francorp has advised almost 8,000 companies and developed over 2,000 franchise programs in various parts of the United States, North and South America, and Asia. Francorp has always been at the forefront of franchise growth in these countries. A one-stop franchise consulting company, it offers a wide range of development services and has been named one of the top 100 management consulting firms in America. Its top clients include Kentucky Fried Chicken, Chevron Texaco (Caltex), Auntie Anne’s Pretzels, Holiday Inn, Ace Hardware, Popeye’s Biscuits & Chicken, am/pm store, and many more.

With headquarters in Chicago, USA, Francorp prides of 11 offices worldwide including New York, Los Angeles, Naples, Florida, Mexico, Argentina, Chile, Sevilla, Montevideo, Santiago, Tokyo, and Manila. Its Asian Regional Development Headquarters is based in Metro Manila, home to Francorp Philippines.

Francorp Philippines grew as an integral part of upgrading Philippine franchising to a thriving franchise industry of world-class level. Through its high international standards, local entrepreneurs were able to access to professional franchise services that meet global standards. Combining Francorp International’s expertise in foreign expansions and the local group’s rich franchise business experience, the Philippine operation has been credited for the growth of a number of top franchises locally and internationally.

“Our company, in cooperation with the local franchise association, practically helped the industry grow from barely 50 or so franchises in 1995 to over 800 franchises today,” Lim said. In less than 10 years, Francorp Philippines has been involved in the global expansion of top franchise companies like Jollibee Foods Corporation, the country’s number 1 fastfood chain with over 450 outlets nationwide and overseas branches in Hong Kong, Indonesia, Vietnam, Brunei Darussalam, Guam, Saipan and the USA.
Other top clients of Francorp Philippines include Bench, the country’s most multi-awarded retail brand (90 outlets locally and outlets in Shanghai, Xiamen, Guam, Saudi Arabia and Kuwait); Max’s Restaurant, a popular fried chicken restaurant (over 80 outlets locally including 2 in the US); Goldlilocks Bakeshop, a well-loved cake and bakeshop (roughly 150 outlets including some in the US); Crystal Clear, the country’s most successful water brand, (with more than 285 outlets including branches in Indonesia, Malaysia and Singapore); Islands Souvenirs, a most admired souvenir t-shirt company, (over 150 outlets including overseas in Singapore, Guam, San Francisco and Hawaii); and Penshoppe, a top retail brand endorsed by international diva Mandy Moore, (over 90 outlets including franchises in the China and Middle East). Customized franchise programs have also been done by Francorp for top retailers, food and service businesses now operating franchises successfully in the Philippines and overseas.

While Francorp has worked with some of the best names in the industry, many of its clients started small. Definitely, at the initial stages of their growth, these companies felt assured as a first step, to get guidance from international experts in franchise development -- after all, they have a brand and business interest to protect. With a reputable group like Francorp as consultant, businesses manage to expand with confidence, knowing that trained professionals with years of franchise experience, are on hand to advise them on how to effectively set-up, launch, run and grow a franchise system.

With its success in the Philippines, Francorp sets its sight on expanding its presence in Asia, particularly in countries like China, Indonesia, Thailand and Vietnam where the huge franchise market remains untapped. At present, Francorp Asia is searching for the right local partner or licensee in these countries. “We hope to partner with individuals or groups with the appropriate management/ marketing consultancy and/or legal background to set-up and launch Francorp operations in these countries,” Mr. Lim announced.

Lim explains the concept of franchising. Business format franchises offer the franchisee not only a trademark and logo but a complete system of doing business. The word “system” is the key concept to franchising. A franchisee receives assistance in site selection, business set-up, personnel training, advertising and product supply chain.

Quite importantly, the franchisee gets an operations manual, which is like the “Bible” for running the business – which tells the franchisee what to do on a daily basis, from opening to closing. For these services, the franchisee pays an upfront franchise fee and an on-going royalty which enables the franchisor to provide training, research and development, and continuing support for the entire business. In a nutshell, the franchisee purchases someone else’s business experience and success-formula.

With a new franchise business opening somewhere in the U.S. every 8 minutes each business day, franchising is indeed the success story of the 1990s, Mr. Lim added.

Opportunities abound in the field of franchising in Asia, thus, entrepreneurs must continue to develop their business’ competitive edge to stay ahead of the market. The key is to find the right franchise developer with real-world experience, specialization and global solutions on franchising. This is where the presence of international experts like Francorp becomes critical.
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