FRANCHISING KERRIMO BRANCH

IN ALICIA, ISABELA

A Feasibility Study

Presented to

the Senior High School Department

Northeast Luzon Adventist College

In Partial Fulfillment

Of the Requirments for

Inquiries, Investigation, Immersion

Juan, Audrey Joyce

Gallarde, Frenchie Michelle

Romua, Angeli

Serrano, Paula

Delos Ama, Arren

Martin, Maria

November 2019
 CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Early as the 1910s in Portland, Joseph Gatto started selling with his horse pulled cart.

Food carts have become a place for foodies because that have adapted to the wants and needs of

their consumers from the start of the 21st-century.

Food carts have been around in the Philippines for some quite time, from fish ball carts

to the endless stalls you see in malls. It is easy to set-up, low initial investment and good chance

of success are just some reason why food cart business is thriving in the Philippines. Many

Filipino’s wants to have a quick, affordable and easy to carry snacks.

Engr. Edmundo Lanto and his wife started as one of Kerrimo’s franchisees. It was in

2011 when it decided to acquire Kerrimo and become the Brand’s full-pledged owner. Kerrimo

is on to-go food concept with its food and drink in one single cup. This idea came up with a

OFW going to cinema holding her bag, popcorn and a cup of juice. The brand name came from

the word “Carry mo” or “You can carry”

Kerrimo business start in 2009 and is a business concept proved succesful with its

growing count of 97 branches nationwide and 85 franchisees. Recently, Kerrimo joined with U-

Franchise Sales & Management to expand their network nationwide and globally. U-Franchise

specialize in in business matching. They assist franchisors to find potential investors by

supporting them from pre-qualification to negotiation. Similary, they help entrepreneurs find the

right franchise business concepts that suit their business preference.

Statement of the Problem

This feasibility study entitled “Franchising Kerrimo Branch in Alicia, Isabela” is

primarily conducted to determine the viability and profitability of engaging into a franchising

business.

Objectives

The main purpose of this study is to determine the feasibility of franchising a kerrimo

branch in Alicia, Isabela.

Marketing

1. To determine the demand for the product in the target market;

2. To present the product desciption of the proposed business francise;

3. To determine the supply for similar or close substitute products in the target market

4. To devise a marketing plan with the corresponding business strategies to render the

operations successful.

Technical

1. To determine the most effective and efficient way on how the products will be produced;

2. To discuss the need of a space and the plan of whether to put up or to lease;

3. To create a layout plan that utulizes the production space;

4. To choose the best location for the proposed business;

5. To establish quality control in every stage of production;

6. To enumerate the product costs that comprise the manufacturing of the product; and
7. To enumerate the product costs that comprise the manufacturing of the product.

Organizational and Human Resource

1. To know the necessary requirements in establishing a business;

2. To set requirement and qualifications of personnel;

3. To identify the jobs necessary for business operations;

Strategic Management

1. To develop the mission, vision, and objectives, key result areas, and performance indicators

that will reflect the main purpose of the proposed organization;

2. To plan a strategic evaluation process to review business operations; and

3. To make short term and long term plans and also contingency plans for the propose business.

Financial

1. To determine the total capital investment needed to implement the proposed project;

2. To describe and explain the assumptions adapted for the preparation of financial statements;

3. To learn and examine the possible source of funds necessary for initial investment and

subsequent operation;
Socio-economic Responsibility

1. To enumerate and evaluate the contributions of the proposed project and its activities with

regards to different stakeholders.

Instruments Used

The research instrument that will be used to gather necessary data include questionnaires

and interviews. Other library techniques will also be used to gather relevant information. This

includes the use of related books, magazines and other feasibility studies found in libraries. The

observation of some Kerrimo branches and other food cart will also be used to gain more in-deph

information regarding the proposed business.

Subjects of the Study

The researchers selected the students, workers, adults and children as respondents of this

study. This is because the proponents of this thesis-feasibility believes that those chosen

respondents can give the most appropriate information and answer about the proposed business

business in relation to the present condition of the business industry.

Assumption

Before formally conducting the research, the following assumption were established:

The initial capital is 250,000-350,000 million.

The location of the business is in Alicia, Isabela.

The adoption of Sole Proprietorship as the most suitable form of business organization.

The Project of the established future earnings in the next five years
SCOPE AND LIMITATION

This study aims to franchise a Kerrimo branch in Alicia, Isabela. The scope of the study

shall cover another type of respondent who will be the future target market. They are students of

different schools who are near the proposed location. The schools that will be covered are School

of Our Lady of Atocha, Alicia National High School, Northeast Luzon Adventist College,

Dalton, Taps, Odizee School of Achiever.