PHILIPPINES Law and Practice Contributed by: Patricia A O Bunye, Anica Angela G Gomez, Angel Rae N Balbin and Bianca Marie J Angela M Rañola, Cruz Marcelo & Tenefrancia
Cruz Marcelo & Tenefrancia 9th, 10th, 11th & 12th Floors, One Orion 11th Avenue Corner University Parkway Bonifacio Global City Taguig 1634 Metro Manila Philippines
Tel: +63 288 105 858 Fax: +63 288 103 838 Email: ip@cruzmarcelo.com Web: www.cruzmarcelo.com
1. An Introduction to Franchising 1.1 Franchise Market Overview With over 1,800 franchise brands and 120,000 fran - chise outlets, the Philippines has solidified its position as the largest franchising market in Southeast Asia and the seventh largest worldwide. Projected to be the “Golden Age of Franchising”, the Philippines’ fran - chising industry is expected by the Philippine Fran - chise Association (PFA) to achieve revenue growth of up to 10% in 2025 notwithstanding challenging mar - ket uncertainties, where industry-wide earnings are estimated to surge to PHP800 billion from a PHP538 billion valuation in 2022. The remarkable growth trajectory in the franchising industry is largely driven by the food sector, which accounts for the majority (60%) of the franchise opportunities nationwide, although the services sec - tor is one of the fastest-growing segments. According to the International Trade Association (ITA), the market is predominantly composed of American brands, but there is a growing preference for Japa - nese, Korean, Chinese and European options among the younger generation. The ITA emphasised that entry of new American brands in the market may be stifled by high market saturation and stiff competition, and it is important to identify a qualified local partner to establish a footprint in the Philippines. At present, there are several local firms with experi - ence in franchises that tend to dominate the American brands, including the Max’s group (handling Krispy
Kreme and Jamba Juice), Jollibee Foods Corporation (handling Burger King, Panda Express and CBTL) and the Bistro Group (handling Buffalo Wild Wings, Den - ny’s, Texas Roadhouse, Italianni’s and Fridays, among others). In 2024, the PFA hosted its annual Franchise Excel - lence Awards, which recognises franchises that have become benchmarks in franchise operations in the Philippines. The awardees include Shakey’s, Mang Inasal, Potato Corner and Famous Belgian Waffles, which have been inducted into its Hall of Fame. Other notable awardees are 7-Eleven, Greenwich, Toby’s Sports, Chowking, Chatime, Grainsmart, Master Sio - mai and But First, Coffee. Outside of the PFA’s list of awardees, the Philippines has a dynamic franchising market consisting of both domestic and international brands. According to the Philippine Department of Trade and Industry (DTI), there is a growing demand for Filipino franchises inter - nationally. At the Franchising Expo held in Sydney in May 2025, Philippine homegrown franchise brands generated USD33.45 million in actual and potential export sales. Participating brands included Bench, Jollibee, Max’s Restaurant, Miguelito’s Ice Cream and Shawarma Shack, among others. International franchisors, which include McDonald’s, Dunkin’, KFC and Starbucks, likewise have a strong presence in the Philippine market. The Philippine franchising industry is projected to sus - tain its robust growth over the years with continuing support from public and private sectors. For instance,
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