Your hard-earned money from a stable source of income may not be enough to achieve your financial goals, especially if you’re after financial stability. It’s always better to take a little risk and explore other options to grow your money. One of these options is franchising, a business venture where you can be your own boss.
Here are the ten most profitable franchises in the Philippines that are worth your time, effort, and money.
Potato Corner
Launched in October 1992 by Cinco Corporation, Potato Corner remains to be the most accessible and affordable french fries snack in the country. The brand only had small stalls in the Philippines before, but it expanded to Panama, USA, Indonesia, Singapore, Australia, Hong-Kong, Thailand, Vietnam, Cambodia, and Kuwait after its boom. The success of the brand earned the franchise multiple awards such as the Franchise Hall of Fame Award and Global Franchise Award from the Philippine Franchise Association and Department of Trade and Industry (DTI)
Potato Corner can now be found in malls, train stations, schools, and parks. Franchisees represent 70% of the brand’s outlets with their standard carts (230k), school carts (385k), kiosks (400-600k), in-line stores (600-800k), and in-line dine-in stores (800k-1.2M). Each franchise package is inclusive of carts, cooking equipment, initial supplies or ingredients, franchisee, and crew training.
Franchise Fee: 230,000 to 1.2M pesos
Total Franchise Investment: 300,000 tp 1.5M pesos
Return of Investment (ROI): 1-2 years
Contact Information: [email protected]
Turks
With over 300 outlets nationwide, Turks easily became one of the biggest and fastest-selling shawarma franchises in the Philippines. Just a few years in business and Turks already sealed many partnerships and celebrity endorsements, thanks to the successful franchise program of Francorp Philippines. The brand’s wide array of shawarma offerings and aggressive marketing campaign attracted millions of Filipinos entrepreneurs.
Turks offer the best Turkish dish made with beef, chicken, and signature sauces. Some of their best-selling products are Pita Doner, Doner On Rice, Beef Doner Steak, and Kebab Wrap. Their entire menu is included in all their franchise packages for food carts (1M-1.2M), kiosks (1M-1.2M), take-out corners (1M-1.2M), food stalls (2.5M-2.8M), and in-line stores (3.3M-3.5M).
Franchise Fee: 600,000 to 1.2M pesos
Total Franchise Investment: 1M-3.5M pesos
Return of Investment (ROI): 6-12 months
Contact Information:[email protected]
Bayad Center
Filipinos are always after convenience. They always look for shops or businesses with multiple offerings. That’s why it’s no surprise that Bayad Center is gaining popularity in the outsourced payment collection industry. Bayad Center is a one-stop payment center that offers bills payment for power resources, cable services, internet services, insurance, airfare bookings, and credit cards. The list of services may also include remittance and prepaid loading.
Because of its wide array of services, one Bayad Center franchise stall in a small town can give you a fast and solid investment return—enough to pay for the equipment and site renovation. The company supports transactions from giant corporations like Meralco, Maynilad, Manila Water, Social Security System (SSS), PagIbig, Globe Telecom, and PLDT. So, you’ll surely never run out of daily, weekly, and monthly customers. You’ll earn 5.00 to 7.50 pesos per paid bill.
Franchise Fee: 350,000 pesos + 12% VAT for five years
Total Franchise Investment: 620,000 – 1.2M pesos
Return of Investment (ROI): 2 years
Contact Information: [email protected]; [email protected]
PCSO Lotto
PCSO Lotto is one of the most affordable franchises in the Philippines. It’s not just affordable—it’s actually cheap. You don’t have to pay a franchise fee to install a lotto outlet in your area. Your capital would only go to installation and processing fees. And upon approval, you can either post a cash bond of 500,000 pesos or a surety bond of 5,795 pesos. When everything’s settled, you can already run a business with various games: Grand Lotto 6/55, Power Lotto, Super Lotto 6/49, Mega Lotto 6/45, Lotto 6/42, Lotto 6 Digit Game, Lotto 4D, SuerTres, EZ2 Lotto, Ultra Lotto 6/58, Keno, KasCash, Scratch It!, Instant Tama!, and Mini-Sweepstakes.
You’ll earn a 5% commission per sale, regardless of the transaction and type of game. Apart from that, you’ll instantly get a commission of 500,000 pesos if a winning lotto ticket was purchased in your outlet.
Franchise Fee: None
Total Franchise Investment: 10,000 pesos for installation fee; 1,700 pesos for processing fee; 500,000 pesos for cash bond or 5,795 pesos for surety bond
Return of Investment (ROI): Indefinite (depending on the outlet size and location)
Contact Information: [email protected]
7-Eleven
Convenience stores are some of the most profitable franchises in the world. Globally, 7-Eleven is a convenience store brand recognized by many. It ranked first on Entrepreneur magazine’s 2017 list of Top 500 Franchises and became part of Fast Company magazine’s World’s Top 10 Most Innovative Companies in Retail. In the Philippines, 7-Eleven remains to be the biggest and most popular franchises approved by entrepreneurs.
As a globally-recognized brand name, acquiring a 7-Eleven branch may require a lot of time, money, and effort. You need to consider the branch’s construction costs, initial supplies and merchandise, royalty fees, operation fees, and human resources. But the fast and solid return of investments is worth it all. You’ll get your investment capital in no time—much faster if you have a prime location.
Franchise Fee: 600,000 pesos
Total Franchise Investment: 1M to 5M pesos
Return of Investment (ROI): 3 to 4 years
Contact Information: [email protected]
Dunkin’ Donuts
Dunkin’ Donuts is a multinational coffeehouse and donut company based in Massachusetts, United States. Since the company expanded its business outside America, it became one of the most sought-after franchises in the world, especially in the Philippines, where donut lovers dubbed it as “Pasalubong ng Bayan”.
Golden Donuts Inc., the company handling Dunkin’ Donuts’ franchises in the Philippines, offers three different franchise packages: chainstore model, dealership model, and area franchising. Chainstore models are take-out booths that can be placed in schools, convenient stores, and other public areas. Dealership models are stalls with complete equipment and merchandise. Area franchising, meanwhile, is an all-in package with a fully-functional store and production center. If you’re opting for bigger franchise packages, you need to consider the franchising fee, security deposit, merchandise and materials, and store equipment.
Franchise Fee: 200,000 pesos
Total Franchise Investment: 500,000 to 32M pesos
Return of Investment (ROI): Indefinite (depending on the outlet size and location)
Contact Information: [email protected]
Siomai House
Food carts are slowly gaining popularity in the franchise industry. They’re profitable and can be placed in any area with thick crowds like terminals, schools, and office buildings. One of the most popular food carts in the Philippines is Siomai House, a brand owned by Bernabest Food Merchandise Inc. of Empanada Especiale and Mac Hotdog. Siomai House sells steamed siomai, siomai rice, and ice-cold gulaman. All items are affordable and cheap, so the challenge here is to sell as many products as possible to get a faster return of investment.
In installing a food cart like Siomai House, you need to consider your site location, rent, and crew salary. Some franchisees manage the food cart themselves, while others hire one or two Filipino crew workers per stall.
Franchise Fee: 250,000 pesos
Total Franchise Investment: 300,000 to 400,000 pesos
Return of Investment (ROI): 6 months to 1 year
Contact Information: 363-0226; 447-65-23
Aquabest
A water-refilling station is probably one of the most stable and profitable businesses in the Philippines. You can start from scratch and build a brand of your own, but for faster investment returns, you can obtain a franchise for Aquabest, the leading water-refilling franchise in the country. Aquabest is one of the few water companies that use several technological innovations like Tanwing Ozone, Reverse Osmosis, and Grander Tech to destructure and restructure water, so regular Filipino consumers and celebrities trust the brand.
An Aquabest franchise doesn’t require royalty fees and franchise interest rates (for Metro Manila branches up to 60 months), so you can get your investment returns in no time if the branch is located in a busy residential area. The franchise package already includes the water treatment system, uniforms, staff training, support and maintenance, and equipment replacement.
Franchise Fee: 800,000 pesos
Total Franchise Investment: 800,000 to 1.2M pesos
Return of Investment (ROI): 6 months to 1 year
Contact Information: +63-2-3710478; +63-2-3321436
ML Kwarta Padala / M Lhuillier
Money remittance centers are everywhere. The competition is tight, but there’s no denying that a household name like M Lhuillier can be profitable in busy areas. With over 2,500 branches nationwide, M Lhuillier is one of the most reputable remittance centers in the country.
You can open your own branch for only 99,000 pesos as ML Kwarta Padala offers expansions with no franchise fee, royalty fee, and annual fee. The package already includes One (1) Lenovo Yoga 2 Tablet, ML Kwarta Padala Express System, WiFi printer, and marketing collaterals, but you still need an ML Wallet with 25,000 peso initial load and reputable employees to operate. You can operate the store or hire Filipino workers and security guards. If you’re after a bigger stall, you may also choose to upgrade your equipment and expand your location.
Franchise Fee: None
Total Franchise Investment: 99,000 to 125,000 pesos
Return of Investment (ROI): 6 months to 1 year
Contact Information: [email protected]
Generics Pharmacy (TGP)
Liuson Family’s The Generics Pharmacy is one of the biggest drugstore chains in the Philippines. The pharmacy sells affordable and quality medicines to Filipinos—especially to the underprivileged—so they also easily became one of the largest retailers of medicine in the country. Today, TGP has over 2,000 branches nationwide. TGP’s advocacy to provide the best medicine to Filipinos from all walks of life is what makes its brand name popular among Filipino households.
TGP’s franchise package is less than a million, and it already includes the franchise fee and the total support system by the company. The royalty fee charged by TGP is 1% of gross sales for continuing support services. Aside from the initial fees, you also need to shell out money to hire registered pharmacists and reputable employees. If you don’t have time to follow a traditional hiring process, you can look for part-time pharmacists at Rakuboss.ph.
Franchise Fee: 210,000 pesos
Total Franchise Investment: 600,000 pesos to 850,000 pesos
Return of Investment (ROI): 2 to 3 years
Contact Information: (632) 821-1111
How To Choose The Right Franchise Business
Now that we’ve established some of the best and most profitable franchises in the Philippines, you have plenty of options to choose from. Your next goal is to narrow down your options and choose the right franchise business based on several internal and external factors. Our guide below will help you choose the right franchise to invest in:
Consider Your Investment Budget
Considering your funds before signing a business deal is a no-brainer. We’re sure that you’ve already planned that out. But you also have to think about the risk and the range—the amount of money you’re willing to gamble, lose, or earn. Don’t just allot money for the franchise fee, prepare extra funds for the processing fee, employees and equipment (if there are any), and initial capital. Know the total financial requirements, and look for franchise investments that fit your current investment budget.
Assess Your Strengths And Weaknesses
Technically, you’re the owner of the business. Even if you hire employees to manage them for you, you’re still the face of your own franchise. Its downfall and survival will depend on your actions and decisions. So, it’s best to choose the type of business that can benefit from your strengths and won’t challenge your weaknesses. Choose a franchise that you’re more knowledgeable about. Choose an industry where you have significant or considerable experience and expertise.
Check The Company’s Background And Performance
Not all reputable, popular, or big franchise companies are consistent. Yes, the success of the business still depends on how the franchisee manages it, but don’t gamble your money on franchises with low success rates just because you believe in yourself. The business market is always volatile as there are unforeseeable factors that can boost or damage your sales.
Learn From Other Franchisees’ Personal Experiences
Follow the footsteps of other franchisees, the successful ones at least. If you know someone who already tried the franchise program, interview them. If you don’t have direct connections, you can read threads and forums online. You need to know how effective the program is, regardless of the owner, location, and type of franchise.
