Alva’s Chicharon & Fried Chicken, one of Bohol’s pride and favorite brands of chicharon, is on its road to 20+ outlets as it has expanded rapidly in the last two years, thanks to franchising. The famous Boholano chicharon concept offers affordable yet delicious Filipino comfort foods such as pork cracklings or chicharon, fried chicken, ngohiong (Cebuano spring roll), siopao, and more.
“One of the reasons why we opened up Alva’s for franchising is we wanted to expand our market and make our products easily accessible to our customers,” says Jane Binangbang, managing director for franchising. “Before, we considered opening stores outside our city. However, we felt that even by just operating a number of company-owned branches within our reach, it’s already quite challenging,” she adds.
Some of the challenging factors she emphasized are resources, time, and manpower. If a business opens up more company-owned branches, it will add more pressure in terms of allocating resources, managing time, and building manpower. Unlike in franchising, these factors are carried by the franchisees themselves.
“The costs will really increase and we also observed that the growth is quite slow in comparison to how big businesses grew through franchising,” Binangbang explains. Another reason Alva’s opened its doors to franchising is the persistent inquiries of aspiring entrepreneurs. “After some years of operating, we received a lot of inquiries if we are accepting franchising,” she adds.
It was in 2018 when they decided to attend Francorp’s “How to Franchise Your Business” seminar (FYBS) due to their desire to expand their business. “It was just very timely that Francorp was holding an FYBS seminar last 2018 and after gaining ideas on franchising, it gave us the urge to take this path,” she recalls.
Lessons in franchising
Indeed, franchising is the most efficient and cost-effective way to accelerate business growth as it has a 90% success rate. Alva’s Chicharon & Fried Chicken attests to this fact and enjoys the fruits of their hard work.
“Cliche as it may sound, patience is truly a virtue. Our experience in franchising is not all a walk in the park,” Binangbang shares. Franchising means you are in business with franchisees and customers, hence, franchisors have to be patient when it comes to dealing with different types of people.
“We encounter people with different personalities and experiences, and in some cases we deal with aspiring franchisees with little to no experience at all in business. Some don’t even know how franchising works. They have the capital, but they don’t have any idea how it’s done,” she says. In these cases, effective communication through sales and marketing strategies is key in educating people on your brand, business, and franchise program.
Aside from patience, another lesson they have learned is consistency. Binangbang shares that they have to be consistent in regularly monitoring and auditing their franchisees in order to look into how they run the business because they are carrying the Alva’s brand. “This is critical because leniency often results in non-compliance. We have to make sure that they comply with our standards through and through,” she explains.
Three tips for would-be franchisors
1 | Build trust and relationships
It is worth emphasizing that franchising is a business of relationship. Therefore, it is vital to build and nurture a healthy franchisor-franchisee win-win relationship.
“As franchisors, you have to build a connection and trust with your franchisees. Your perspective should not only be focused on your own advantage, rather you should consider putting yourself in the shoes of your franchisees,” Binangbang says.
A franchise relationship built on trust is very beneficial for both sides. Franchisors will easily identify and address the needs of their franchisees, and franchisees will be able to be successful and ultimately contribute to the success of the entire business.
“You need to build their trust. It is a priority to take care of your franchisees since they are your business partners. Remember that their success is also your success,” she adds.
2 | Continually improve your brand
Just like how technology works, brand improvement is also very important. With many concepts sprouting and competing for customers, it is essential to upgrade your products and improve your services to continuously excite the market.
“Aside from focusing on maintaining your quality and standards, it is also important to continually upgrade your brand. It is a fact that there will always be competitors so you have to think of innovative ways on how you can have an edge or a leverage over them. We all know that change is the only constant thing in this world, so you really don’t want to be left behind,” Binangbang explains.
3 | Enhance your knowledge
On a final note, Binangbang shares the importance of learning, especially for franchisors who are about to start their journey of franchising.
“Do not forget to attend franchising seminars just like this one. It is really important to consult with professionals. It will give you a good glimpse on how franchising is done,” she says. “If you can, you need to have an experienced franchising expert or consultant who will guide you on how you can successfully manage and franchise your business. Francorp, being an established reputable consulting firm, really helped us start our franchising journey and the rest is history.”
Do you have an existing business that you would like to franchise? Are you seeking to grow your business rapidly through franchising? You may attend the regularly held “How to Franchise Your Business” seminar and learn from the experts. You can check out this link for more details and schedules or you may contact Tel. No.: (+632) 8638.31.49/50 / Globe Mobile: 0917.835.55.30 / Smart Mobile: 0920.961.08.10 / Email: info@francorp.com.ph.