Ladies and gentlemen good morning.

The first question that pops into our mind is that… what is franchising?

According to Philippine Franchising Association:

Franchising refers to the method of practicing and using another’s perfected business
concept. In a franchise relationship, the franchisee is granted the right to market a product
or a service under a marketing plan or a system that uses the trademark, name, logo and
advertising owned by the franchisor.

The second question is… What are the different types of franchising?

Product franchising, also known as trade name franchising, is that type of franchising
wherein a manufacturer grants a franchisee the right to sell its products, but with no
method of doing business. Examples of this type of franchising are car dealerships and
service stations. The business format franchising, also identified as a name and process
franchise, features a broader and ongoing relationship between the franchisor and the
franchisee, wherein aside from granting the right to use the name and market the products
and services of the franchisor, the franchisee is also provided a complete plan for
managing and operating the business – a transfer of the proven way of doing business
that has been developed by the franchisor. This plan often includes a full range of
services, including site selection, training, product supply, marketing plans and even
assistance in obtaining financing. All of the franchisor’s operating systems, technical
expertise, marketing systems, training systems, management methods and essentially all
relevant information, are transferred to the franchisee.

Many of you have the knowledge of franchising already as this are available in leaflets
and other promotional materials distributed here. However, there is more to franchising
than these bulleted items discuss in this materials.

FRANCHISE. F, R, A, N, C, H, I, S, and E!

In franchising, you will develop F. F for Friendship. More than the business aspect,
usually the franchisee and the franchisor develop this kind of relation. In franchising, it is
important that the franchisee and franchisor are friends. For friends always do an extra
mile than business partners. The franchisee can seek advice from the franchisor and the
franchisor can get feedback from the franchisee. See? It is a two way relationship that
both can benefit from it.

R, Return of investment. In franchise it is so easy to recover what you spent for in the
franchise. The return of investment will be fast if you put your heart and dedication to your
business. Again business is like a child, you need to nourish and take care of it for it to
grow and develop.
 A, for achievement. If your franchise succeed, it would be your achievement in life. Why?
Because as your franchise grows, it also help your family grow. Your children can be send
to a good school, your family can be provided with food that are necessary for a healthy
lifestyle and with this, you will be fulfilled in with what you have achieved.

N, for nurture. No matter how successful and popular your franchise is, if you don’t
nurture and take care of it, it will fade. What is important is you continue to take good care
of your franchise for the market is so demanding for innovation and change. You need to
nurture your franchise by continuing to study the demand of the market.

C for contribution. By having your franchise, you are contributing to the development of
your country. How? By investing, you are generating job for the community. By investing,
you are contributing to the programs, projects and activities for the people by the
government by paying your taxes.

H for honesty. Both the franchisee and franchisor must be honest and transparent with
each other. Trust is one of the core of Franchise. The franchisor is entrusting the brand
that he perfected to the franchisee and the franchisee is giving his/her confidence to the
franchisor that his investment will grow with the business.

I for ideas. Franchise represents how can an idea change the lives of the people. By the
business idea of the franchisor, they helped change the lives of those franchisee who
became successful because of a single idea. From the franchisor to the franchisee, the
idea that has been created they created a chain reaction of success.

S for success. For every franchise that has been created is a success story for both the
franchisee and the franchisor. Let us always remember that the success of the franchisor
is the success of the franchisee. And the success of the franchisor is the success of the
franchisor. It is always a two way relationship for the one always needs the other. For
each one of you here, I hope you can look for the other half for your investment that can
give the success that you are looking for.

And E for enjoyment. It will surprise you that having a franchise can give you an enjoyment
that you never expected. You think that business is stress and all. But let me tell you, I
have been a businesswoman also just like you. It is true that there is stress, but you will
realized that this stress can be channeled into learnings and in the process it becomes
your enjoyment. You will feel the enjoyment when you see your franchise is already
growing.

As I always tell the MSMEs, your business is like a child. It will depend on you on how
you wanted it to be. It requires discipline, dedication and love. The absent of one of this
will make your business fail. Yes, it is not easy but once you perfected it, it will be so easy
that you wont feel that you are working.

Thank you very much and I hope that we continue to work hand in hand in making the
franchising business in the country more fun. Always remember that the DTI will always
be here for you. For as I always say, your business is our business! Mabuhay po kayong
lahat.