History and Franchise Profile

Miguelitos ice cream is well-known for its softy ice cream, but it now has a diverse
range of products available all over the world, as well as over 600 locations in Luzon,
Visayas, and Mindanao. But, like any other business, the MIC began from nothing.

According to Business Inquirer Net, Michelle and Marlon Aman started Miguelitos
International Corporation in Paco, Manila, in 2002. Marlon Aman's wife is a business
administration graduate who started out in little enterprises like LPG and other things,
while Marlon Aman was a mechanical engineering graduate who worked as a bank
employee before starting their company. Before, the pair exclusively offered soft serve
ice cream premixes and ice cream equipment for sale or rental.

When they first launched Miguelitos, the couple sold food premixes before
expanding into the food and ice cream industries. MIC, or the Miguelitos International
Corporation, ventured into the franchising business as a result of their vision, which
ignited their success. Now, the MIC is known as the food cart industry's leader, and it is
also assisting small and medium-sized businesses, as well as entrepreneurs who want
to start and venture into a profitable and affordable business.

MIC looked for opportunities to improve and provide service to their valued
customers even during the pandemic, despite the restrictions that were circulating within
the country. They have now been operating for over two decades and continue to improve
and expand their network, as well as business concepts in international franchising.

MIC currently charges 600,000 pesos for its franchise, which includes the food
cart, signage, promotion, and other start-up assistance required for newcomers. They
also provide on-site assistance, particularly if the chosen locations are in the company's
preferred area, such as malls, plazas, and so on. Before the company can provide
assistance and 3-4 weeks of training, the franchisee must pay 50% of the upfront cost,
and the remaining balance must be paid 7 days before the soft opening. One of the
reasons they provide site assistance is to avoid having two or more franchises within a
500-kilometer radius, so that the franchisee can guarantee a profit and achieve that 50%
gross margin in no time. In terms of product, they will supply the bear cone, choco dip,
sugar cone, and so on. The supplies being provided depend on the franchisee on what
product he/she would like to sell, and with a minimum purchase of 7,000 pesos, you can
avail free delivery charge. What's nice about MIC is that they don't charge royalties and
can be renewed for 60,000 pesos per year.
SWOT Analysis

This section of the paper is the analysis of the franchise regarding its strength,
weaknesses, opportunities and threats.

Strengths Weaknesses

 Large number of distribution  Seasonal dependent

 Affordable  Limited market share
 Offers wide selection or variety of  Limited pricing flexibility
products  Limited working space
 Faster return on income  Machine dependent

Opportunities Threats

 Expansion in terms of its network  Substitutes

 Entrance of Miguelitos in  Growing industry
international market and  Tough competition
showcasing its product to the
international

This table is the representation of the comparison between strength, opportunities,

threats and weaknesses, in order to more visualize and understand the position of
Miguelitos International Corporation and what to expect from it.

Opportunities
Strengths  The name and trademark
that the Miguelitos
established helps for the
expansion of the business
thus it will also help you to
earn or achieve that
projected ROI or that
projected earnings in no
time.
 Due to a large variety of
products, gives a large door
of opportunity to showcase
and expand its network in
the international franchising
Threats
 Despite of numbers of
major players in the ice
cream industry or market,
MIC has diversified
products and doesn’t rely
solely on ice cream, thus
it can overcome the threat
of substitutes
 Due to a large number of
industries entering the
market, level of
competition may be high,
but due to a large number
of branches within the
nation, promotion and

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  Since its affordable,
consumer-friendly, and a
large number of branches,
makes the business more
flexible in terms of
expansion and promotion.
Weaknesses  Being seasonal dependent
might slow down the
expansion of the business or
the network in terms of
international franchising
since there are seasons
where the demand of ice
cream and sweets is low.
 Due to the limitation or the
market share and pricing
flexibility and being machine
dependent would be hard for
the business since
transportation of products
would be hard, not only that,
there are a lot of major
players in the market that
might be a hinder in the
expansion.
distribution of products
will be at ease, and since
MIC is known for its
name, trademark and
affordability, the target
profit margin is
achievable.
 Miguelitos international
corporation is seasonal
dependent thus it is a
disadvantage for them
since there are a lot of
substitutes that can offer
more than what MIC can
do or offer and doesn’t
solely rely on the trend or
what’s in the season.
 Entrance of new
businesses is
unavoidable, thus
innovation and
diversification of products
is constant, innovation
would be hard since some
products are highly
dependent on equipment
in which innovation
products is hard.
 Competition is tough
since there are a number
of major players in the
market, in result, there will
be limitation in terms of
market share and pricing
flexibility in order to cope
up with other competitors
because if they increase
the price, their profit
margin will decrease.
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Criteria in Selecting a Franchise

This section of the paper serves as an evaluation of the franchise in base on the criteria
given, these are the:

i. Costs

The franchise fee is very affordable and budget friendly for those entrepreneurs
who want to start their business at a low cost. Franchises typically cost a million or more,
whereas MIC costs 600,000 pesos, and the reason I can say it is affordable is that you
will pay 0% royalty fee, which is a good deal for beginners. The franchise renewal fee is
60,000 pesos per year, which is reasonable given that sales are typically low in the first
three years or first year of operation. To sum up, the annual renewal fee and upfront fee
is franchisee friendly or customer friendly.

ii. Demand and Competition

According to Just-Food and Global data, the Philippines' consumption of ice cream
reached 0.6 kg in 2018 and is expected to reach 0.8 kg in 2023. This data would only
justify that the demand for ice cream is gradually increasing as time passes, but because
we are a growing industry, the expected competition also rises. According to Global data,
the ice cream industry has many major players, including Unilever, Froneri Lux Topco S.à
r.l., San Miguel Corporation, ArceDairy Ice Cream, Artisanal Producers, Prosperity inc.,
and others. Despite the fact that Miguelitos Ice Cream has a high level of competition,
they are still known and can compete with other competitors by franchising their business.
Miguelitos now has over 600 branches across the country, and they continue to expand
their business and network internationally.

iii. Training and Support

For training and support, MIC provides training and support depending on the
franchise you intend to purchase, but in the case of Miguelitos ice cream, also known as
Miguelitos softy ice cream, the franchise offers packages that include 3-4 weeks of
training and support for the franchisee and employee to know and understand how the
equipment works and to ensure the quality of services provided to customers. MIC also
provides site location assistance, equipment, and cart or kiosk setup if you plan to set up
your store in a location preferred by the company, particularly in areas with high foot traffic
such as malls, plazas, and so on. Another reason why MIC assists you in selecting a
franchise or site location is to avoid having two franchise outlets within a 500-meter radius
of the location, ensuring that the franchisee achieves its target ROI or return on
investment. Not only that, but the MIC will provide opening team support, marketing

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support, and celebrity endorsement to help you attract customers and maintain a steady
flow of demand in the area.

iv. Abilities

According to FranNet, five franchisee skills and abilities are required: accounting,
employee relations, time management, and customer service - but I would like to add one
more: knowledge of a specific franchise. Before one can franchise, he must understand
accounting, employee relations, time management, and customer service, as these five
skills are required to maintain a close relationship with his employees and customers. Not
only that, but knowing or tracing the financial status of the business will help you know if
it is in accordance with what you expect and what your employees listed in its records.
Finally, knowledge about a specific franchise. I understand that some franchisees want
to be a franchisee of that company because of the name and fame established by the
franchisor, but basic knowledge or research about a franchise or your choice would be
beneficial because it will give you a better understanding of what to expect and how they
operate their business to be that sustainable in the long run. Not only that, but it will give
you an idea of what industry you are attempting to enter and how to maintain your position
in that market.

v. Franchisor’s Experience

Experience does not come easily; it takes hard work and mistakes to gain that
experience. Before they built or conceptualized the owners, Marlon was a graduate of
mechanical engineering and worked as a bank employee, while Michelle is a business
administration graduate who ventures into small business operations such as LPG and
ice cream stores, as mentioned in the Inquirer Net. When they first started MIC, the couple
focused on selling premix ice creams under the Miguelitos Ice cream brand. After years
of hard work and determination, the MIC or the owners venture into food cart franchising,
and they are now known as the number one food cart franchisor, with over 600 franchise
locations nationwide.

vi. Expansion Plans

MIC has expanded a lot after venturing into food cart franchising and now being
number one in terms of food cart franchising, but since they are continuously growing,
and in order to cope up with the demand, MIC plans to expands it network, not only that,
it plans to expand their concepts to the international franchising in order for them to
showcase their concepts and best seller such as: Avocado locco, Hyped mango and etc,
and lastly, is to let the foreign countries know and try the famous delicacies found here in
the Philippines just like “kakanin”.

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Conclusion

If I were a franchisee, I would say that it is great to invest in Miguelitos international

corporation, although their products are seasonal, there are a lot more that MIC could
offer.

MIC already established their name and position in the market, other than that,
they are planning to expand their network and they will venture into international
franchising, thus it would give me a greater opportunity especially when I’m franchising
them. Their products and concepts doesn’t actually rely entirely on the ice cream itself,
but also offers kakanin and other Filipino delicacies in the international market, which
makes it even more better since we will have a large of selection of products to choose
and to franchise.

It is also affordable for the franchisee, since the franchise that MIC offered ranges
300,00 to 1,000,000 depending on the franchise you are planning to buy, but for the
miguelitos ice cream franchise itself, it costs 600,000 which is good and budget friendly
for the franchisee, it also has 0% royalty fee which is better since it wouldn’t cost a lot,
with such amount, it will be guaranteed that you can achieve the target return in no time.

There’s a lot of inclusion just like training for the franchisee and the employees that
is very beneficial and good, since the quality of product and service are being ensured.
Not only that, they prioritize customer service and satisfaction, that’s why they also offer
discounts or leverage such us free of delivery fee with a minimum order of 7,000 pesos.
This will give you more chance to earn more since the costs of supplies would decrease.
As a prospect franchisee, it is a great investment in or MIC would be a great franchise to
start your business.

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 References

Admin. (2023, January 11). Just the facts – ice cream in the Philippines. Just Food. https://www.just-
food.com/features/just-the-facts-ice-cream-in-the-philippines/

BrandRoom, I. (2022, February 24). 20 years of success: Get to know the people behind Miguelito’s
International Corporation. INQUIRER.net. https://business.inquirer.net/341718/20-years-of-
success-get-to-know-the-people-behind-miguelitos-international-corporation

FranNetLtfe. (2022, August 24). 5 “Must have” skills to be a successful franchise owner.
FranNet. https://frannet.com/resources/general/5-successful-franchise-franchise-owner-skills/

Philippines ice cream market size and trend analysis by categories and segment, distribution channel,
packaging formats, market share, demographics and forecast, 2021-2026. (2022, December
13). Market Research Reports & Consulting | GlobalData UK
Ltd. https://www.globaldata.com/store/report/philippines-ice-cream-market-
analysis/#:~:text=The%20Philippines%20ice%20cream%20market%20is%20expected%20to%2
0achieve%20a,6%25%20during%202021%2D2026

Pinoyentre. (2023, February 2). Miguelitos ice cream - Franchise, business and entrepreneur. Philippines
- Franchise, Business, and Entrepreneur. https://www.pinoy-
entrepreneur.com/2009/11/07/miguelitos-ice-cream/

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