30 Years and Still Moving Forward

By Ma. Alegria S. Limjoco, CFE

Vice Chairman, Francorp Philippines

Initial Setbacks

Ever since we brought Francorp to the Philippines from the United States in 1996, we have overcome many upheavals, proving that franchising’s 90% success rate works, even amid crisis. Not many people knew about franchising back then. However, confident that franchising can make a difference here, sparked by an early USAID study that it can catalyze growth in many economies, we learned the ropes from Francorp in Chicago and transferred the knowledge to our local entrepreneurs.

Our resilience was tested by the Asian Financial Crisis of 1997, when we were just starting, as well as the 2008 Global Recession, and finally the COVID-19 Pandemic of 2020-2022. The Asian Financial Crisis saw rising interest rates and a devalued currency, making it harder to import supplies and to sustain the increased royalty payments. The 2008 Global Recession decreased consumer spending, so franchises had lesser profit margins. The COVID Pandemic lockdowns reshaped business models to delivery-only, digitalization, and cloud kitchens, especially in the food industry.

Challenges Overcome

Despite these bottlenecks, Francorp continued because of our belief in the power of franchising. Our earliest MSME clients used franchising to come out stronger. That is why some of the mom-and-pop stores back then are now big names in the industry, with some going global. We have assisted brands from their baby steps to full-fledged franchising, making us an enabler and multiplier of franchises.

In two decades, we have served 500 franchisor-clients who generated 250,000 jobs through their stores. Before we reached this number, it helped that a decade earlier, on our 10th anniversary, the Philippine Franchise Association (PFA) started hosting the Philippine International Franchise Conference and Expo (PIFCE), where our clients were always present. Armed with “Franchise Talk”, the official publication of Francorp, clients can promote themselves and find new franchisees who see value in their brand offerings.

Henceforth, the event became the platform for more and more franchisors to launch their brands and find new franchisee-partners, here and abroad. Starting in 2011, the show was renamed to FRANCHISE ASIA, the biggest franchise exposition in Asia.

Organizational Strengthening

We set up an office in the heart of the Ortigas business district to be more accessible to clients who needed a place to learn the ropes in this new business model called franchising. We did this via educational sessions called Franchise Your Business Seminars (FYBS). In 2000, Francorp launched its sales and marketing arm – the U-franchise Sales and Management Inc. It is now the largest franchise sales company in the country. In 2010, we opened our Cebu office to assist clients from the Visayas and Mindanao.

Internally, the Francorp organization saw more and more consultants earning the title of Certified Franchise Executives (CFEs). We have the highest number of CFEs (now 19) in any franchise consultancy firm in Asia. This is a mini-MBA course administered by PFA and the only internationally recognized development program for franchise executives.

In the new normal, Francorp resorted to knowledge sharing, mentoring, and coaching to support franchisors and franchisees. Franchise businesses had to level up to go digital. E-commerce sites multiplied, cashless transactions were preferred, and online buy-and-sell communities mushroomed.

Through the years, Francorp launched innovations in its organizational structure and physical spaces, forged partnerships with financial institutions and knowledge centers here and abroad to help its clients with loans, networking with Big Brothers, and technologies to keep up with the times, aggressively expanded its clientele to the regions (35% of clients are from outside Metro Manila), and prepared for ASEAN integration.

We continue to share best practices and strategies to make clients’ businesses grow. We take pride in our clients who have grown from one to many and exported brands to foreign shores. Through our partners, U-franchise Sales and Management Inc. and ActionCOACH, numerous franchise seminars, knowledge sharing, fora, both online and face-to-face, MSMEs obtain access to information, upgrade their skills in finance and technology, gain confidence to sustain their business, network with like-minded entrepreneurs in the industry from different sectors – OFWs, millennials, and regional business owners.

Strategies to Move Us Forward

The sad development which erupted last February 28 in the Middle East, the conflict between Iran and Israel, will eventually have an impact on the logistics-dependent food and beverage and retail sectors. The higher gasoline prices alone will increase delivery costs and freight charges. Because of higher prices, there may be less foot traffic to restaurants and food hubs. The displaced OFWs in the affected countries will have a ripple effect on the remittances to our country, which are usually the source of capital for purchasing franchises as well as for consuming franchise products. The predicament now of business owners is whether they absorb the rising costs, lowering their profits, or increase prices and then lose customers.

Whatever happens to the uncertain flow of goods along the Strait of Hormuz may cause some suppliers to “buffer stock,” thus creating artificial shortages and price hikes for franchise outlets. We hope that the government’s mitigating measures can help in the long run, such as fuel subsidies for transport, which will stabilize the delivery costs for food franchises. There is also the close monitoring by the Department of Trade and Industry (DTI) and the Department of Agriculture (DA) of the prices of basic commodities to prevent profiteering, which limits how much a franchisor can adjust their prices in the short term.

Francorp, for its part, needs to educate clients on ways they can cushion the impact of adversity caused by this recent crisis. Operational efficiency must be reevaluated. In supply and inventory, maybe going to local sourcing is the best way to go for now. It also pays to reach out to government help lines, like fuel subsidies that the government gives to transport and agriculture. Small enterprises will be the most benefited if tax exemptions are implemented. This crisis will also push MSMEs to think about using alternative energy.

In the past, we saw among our clients that the strong Filipino brands were refined during periods of global instability. We pray that the crisis ends, but it is imperative that our industry be better prepared for the months ahead. #

As featured in Franchise Talk 2026 Magazine. Click here to download the magazine for free and discover various emerging brands in the franchising industry today.

Do you want to know if you’re ready to franchise your business? Take our free franchisability test or attend the Franchise Your Business Seminar (FYBS). Visit this link for more information.