October 12, 2012

AFFI : Franchising contributes 5% to GDP


“The Philippines is now the leading Asian tiger economy that is beating China's growth in franchising. With a high success rate, franchising has continued to build more successful entrepreneurs,” says Armando “Butz” Bartolome, president and founding member of the Association of Filipino Franchisers, Inc. (AFFI).

The Philippine franchising sector remains robust with a 17 percent growth from US$9.4 billion in 2010, to US$11 billion in sales in 2011.

Based on a University of Asia and the Pacific (UA&P) report, franchising has accounted for five percent of the country’s total Gross Domestic Product (GDP).

Organized in 1997, AFFI is the country’s premier trade organization committed to promoting responsible micro, small, and medium enterprises (MSMEs) through franchising.  AFFI prides itself as developer of successful homegrown franchises such as Goto King, Figaro, Lotsa Pizza, Mang Inasal; among others, which now employ thousands of Filipinos.  
To further promote Philippine franchises and offer the public new perspectives and opportunities in franchising, AFFI is mounting the 11th Filipino Franchise Show on Oct. 12-14, at the World Trade Center, Pasay City. Dubbed “Galing ng Pinoy,” the franchise show will showcase 300 exhibitors and franchise investment opportunities from food, retail, and service industries.

“Franchising has created an estimated 200,000 franchise outlets with an average of four to five employees per outlet. That translates to at least a million of job opportunities for Filipinos nationwide,” adds Bartolome.

While the UA&P study revealed that a bulk of franchises are located in the  National Capital Region, the Central Luzon and Southern Tagalog regions in Luzon are not far behind. Region VII or Western Visayas and Region X or Northern Mindanao top the list in the Vis-Min areas.

The franchising sector’s contribution to countryside development cannot be dismissed, according to Bartolome. “Aside from opportunity creation, employment generation and country development, the franchising sector is a prime mover of MSME development.

Among AFFI’s programs which spurred MSME growth include lectures and seminars on up to date research and development, educational training, participation in local and international trade shows, and opportunities for networking.

“Philippine franchising is now fourth in the world and the leader in the ASEAN region in terms of the number of franchise concepts and franchise outlets. We hope to sustain its phenomenal growth by helping franchises become globally competitive,” says Bartolome.


Referred to as the “sunshine industry”, the franchise industry has churned millions of dollars in investments; some brands succeeding overseas and becoming the country’s global ambassadors.

For more information on the exhibit call PETCO at 8325422; 832-5401/22; email at secretariat@petcogroup.com or call AFFI at  6540345; 8619897. 

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