Business Format Franchise

Ang business format franchise ang pinaka common type na franchise ngayon, dito ang franchisor is
provided nya ang buong business format sa kanyang franchisee,Kasama yung kanilang
trademarks,logo,marketing plan at operational manual. This type of franchise can be found in a number
of industries like sa fast food, restaurants, business services, education, example is Mcdonald’s, Burger
King, Starbucks Coffee, Dunkin’ Donuts. Etc.

Product Distribution Franchise

Sa product distribution franchise,ang franchisor is responsibilad niya mag provide ng kanilang product
na awtorisadong ibenta ng kaniyang distributor.Ang sakop lang ng license na ibibigay ng franchisor is
yung trademark at logo,hindi kasama yung whole system ng pagpapatakbo ng business.Meron parin
guidelines na manggagaling sa franchisor na kailangan parin sundin ng franchisee. Pero ang franchisee
ay may Karapatan parin in terms sa pagpapatakbo ng business.Ang halimbawa ng ganitong franchise ay
mga softdrinks distributors,auto mobile at gas stations.like coca cola, Toyota at shell.

Manufacturing Franchise

So para maintindihan nyo kung ano ang manufacturing franchise,so lets say na gusto mo mag open ng
coca cola company.Kailangan mo dapat maobtain yung rights ng coca cola company para magamit mo
yung kanilang trade name, trademarks at logo ,para makapag produce ng kanilang beverage,then pwede
kana makapag tayo ng manufacturing plant.So yung franchisor is provide na nila yung supply ng
ingredients then yung franchisee is sila na yung mag magmimix nung mga ingredients at magpoproduce
then pwede na nila I benta o I distribute yung product.

The Pros

Established brand. a strong brand is the core of a company’s success and is the result of an effective
brand strategy.Mas mataas ang chance na maging successful ka kung isa ka sa nag franchise sa isang
sikat na brand or successful na brand dahil na established na ito ng maayos.

Proven business model and operating system. Using a proven system from your franchisor means that
you can easily adapt it to your store with the confidence that it will work. So kabilang na dito yung online
at delivery options na nakatulong sa mga businesses na talagang umunlad ngayong may pandemic.

Franchisor support.

So ones na nag franchise ka ,makakakuha ka ng support sa franchisor,tulad ng Financial assistance,

Location selection, Training/operations manual, Advertising,marketing and ongoing support and other
consideration na mag lelead sa success ng iyong business.

Supplier network.
Mas madali ka ng makakakuha ng mga materials na kakailanganin mo sa daily operation ng iyong
business ,kumbaga ay less hassle na sa iyong business ,and meron din mga supplier nag ooffer ng
bulkuhan ,so it means na kapag bulkuhan yung material na kukunin is magkakaroon ka ng discount, so
4maleless na yung expenses mo sa iyong business.

The Cons

Expensive fees and royalties.

Ito yung challenging kapag gusto mo mag franchise sa isang business ,dahil some business is they have a
expensive fees and royalties.Kailangan mo mag invest ng malaking pera para makapag franchise ng isang
business.Hal.jollibee investment req.35-55 million.

Limited control.

Limitado parin yung control mo ,dahil una kailangan mo sundin yung rules ng franchisor, And sila din
yung nagdidictate ng pricing, operating procedures,and allowable supply sources.

Halimbawa kapag nalabag mo yung franchise agreement, possible na mawala yung na franchise mong
business ,or mawalan ka ng Karapatan dun sa business.

Brand scandals and head office decisions.

Halimbawa dito sa brand scandals is yung Nag trending nga noon yung fried towel ng Jollibee BGC,so
ang Nangyari naapektuhan din yung ibang branch ng Jollibee, Ang head office ay maaring mag decision
na may negative effect sa iyo. For example, if you are in a lower-income market and the head office
decides to increase prices, this might lead to a decrease in sales for your store.

Complete Ownership vs Franchise Support. As the owner of the business, you have control over all the
decisions, If you don’t have business experience, then you might make a lot of mistakes that you could
have avoided with support from a franchise.

Ikaw yung magdedecide kung ano ang magiging business branding at yung pricing ng iyong product,
kung baga ikaw ang magseset ng flow ng iyong business, and ikaw din yung nakakaalam ng mga rules sa
iyong business.Syempre kapag may sarili kang business responsibilidad mo din kung ano ang magiging
epekto ng decision mo sa iyong business.

Ang advantage naman kapag isa ka sa nagfranchise ,is hindi mo na kailangan ng experience pero
depende parin sa uri ng franchise, dahil nga sa franchise support ,sila na ang magbibigay training at
ibang support na kailangan mo para makapagpatakbo ng isang business, and mas mataas ang chance na
maging successful ka kung may franchise ka compare dun sa nagsisimula palang ng isang business.
New Brand vs Established Brand. A new brand will not have loyal customers yet. In established brand
they’ll already have customers lined up.

Dito sa new brand is wala pa silang mga loyal customer, which is kailangan nilang gumawa ng marketing
strategy ,kung paano nila mahihikayat yung mga customer, na tangkilikin yung kanilang brand.

In contrast, some established brands just need to open a branch,Meaning na sa established brand,
meron na yang loyal customer na tumatangkilik sa kanilang established brand

Unknown Capital Requirement vs Known Costs. The initial investment of starting up your own business
might be cheaper than getting a franchise, Franchises have at least an estimate of the costs before
reaching a return on investment.

Kapag magtatayo ka ng sariling business is hindi mo alam, kung magkano ang gagastusin sa ipapatayo
mong business,pero dito is mas cheaper compare sa merong franchise,Dito sa known cost is na estimate
na yung pwedeng gastusin nila pero medyo expensive ,hal.mang inasal 1.2 req.investment.

The Importance of Business Model

The business model helps to target the customer base for the company. It helps in making marketing
strategies, projection of revenues and expenses taking into account the type of Business models and
clienteles.

Every investor needs to review the business model in order to get a Knowledge about the company's
competitive edge. Understanding the business model helps the investors to have a better sense of
financial data.

Evaluating the business model helps the investors to get the overall view about the company’s products,
its business strategies and future prospects.