Best Small Franchise Business In The Philippines

Affordable Franchise Philippines

Franchising involves the development and distribution of a branded business model. It provides access to the brand’s trademark, support, and resources in exchange for an investment.

Its advantages include an established brand identity, a proven business model, ease of leasing locations, comprehensive support and training, and delegated research and development. However, its disadvantages include a high initial investment, limited autonomy due to strict guidelines, and the risk of franchisor failure that impacts franchisee success.

In this article, we will talk about the top 10 franchise businesses in the Philippines in 2024. They are some of the most affordable franchises in the Philippines.

Jollibee

Jollibee was founded in 1978 and is headquartered in Pasig, Philippines. Jollibee Foods operates a world-renowned chain of fast food restaurants under the ownership of Jollibee Foods Corporation (JFC). It will have over 1,500 outlets worldwide by September 2023; Jollibee dominates the industry and has surpassed major global chicken-focused fast food players in the Philippines.

It is known for its acclaimed Chickenjoy, which was voted the best fried chicken in several countries, including the United States, Hong Kong, and Singapore. Jollibee boasts a trusted brand, an attractive menu, substantial profit potential, a loyal customer base, and effective marketing strategies. Jollibee’s franchising opportunities are open to self-motivated entrepreneurs who are able to motivate others and commit time to daily restaurant operations.

Prospective franchisees must also attend a comprehensive basic operations training program and have the financial means to invest between P35 million and P55 million, depending on the size of the store. The investment includes construction, kitchen equipment, furniture, air conditioning, signage, and pre-operational expenses. The success of Jollibee’s franchise depends on selecting the optimal store location that targets the desired market segment. It is one of the best affordable franchises in the Philippines.

Potato Corner

Potato Corner is headquartered in Mandaluyong, Philippines. It International was founded by Jose Magsaysay. Potato Corner was started as a food cart in a Philippine night market in 1984.

It quickly gained popularity for its delicious French fries, which included patented flavours such as BBQ, chilli BBQ, sour cream and onion, and cheddar cheese. Since the sale of its first franchise unit in 2016, the chain has expanded to 1,000 franchise locations in 37 countries. It offers not only potato dishes but also a variety of chicken products. The success of the franchise lies in the combination of delicious food and a proven business model.

Franchisees receive extensive training and ongoing support from the franchise team. Investments range from 9.41 to 30.07 million PHP, reflecting the niche nature of the business. Entrepreneurs looking for a proven business model will find Potato Corner’s simplicity appealing, potentially leading to substantial net profits with the right approach. It is one of the best small franchise businesses in the Philippines.

7-Eleven

7-Eleven, Inc. is an American convenience store chain headquartered in Irving, Texas. It is owned by the Japanese company Seven & I Holdings through Seven-Eleven Japan Co., Ltd. It was founded in 1927 as Totem Stores; it was renamed 7-Eleven in 1946 to reflect its expanded hours of operation from 7:00 a.m. to 11:00 p.m., seven days a week.

7-Eleven Japan Co., Ltd. has issued franchise licences for approximately 85,000 stores in 19 countries as of 2024. 7-Eleven offers a wide range of products, including private brand items, coffee, sandwiches, fresh fruit, bakery items, prepared foods, gasoline, dairy products, beverages, financial services, and delivery services.

On October 26, 1982, Philippine Seven Corp. (PSC) acquired the licence to use the 7-Eleven convenience store system in the Philippines. The mission was to introduce a new retail concept to Filipino consumers: operating a chain of 24-hour convenience stores. The franchise fee is PHP 600,000.00, payable upon application acceptance. Initial store supplies, merchandise, construction costs, and upfront rent and deposits are settled before the store opens. Total cash expenditures range from 3.5 million pesos to 5 million pesos. Note: All amounts are exclusive of VAT.

The chain’s profitability depends on customer satisfaction, which is achieved by offering a variety of products, maintaining quality service, ensuring cleanliness and safety, and providing a friendly atmosphere. Success also depends on adhering to 7-Eleven principles, hiring and developing employees focused on quality service, and monitoring sales and trends while managing expenses. It is one of the best low-cost franchises in the Philippines.

Siomai King

Siomai King Franchising was founded in 2006 and is based in Makati, Philippines. It offers a franchise with a unique menu featuring Hong Kong siomai, Japanese siomai, chicken siomai, and Shanghai siomai.

The brand also offers fast and efficient delivery services through a user-friendly app. This franchise stands out due to its affordable cost, lack of royalties and renewal fees, and comprehensive on-site training and support for franchisees. The franchise fee is up to PHP 12,000, with a total initial investment ranging from PHP 149,888 to PHP 239,888. The Siomai King franchise’s potential income can vary; the success of the franchise depends largely on the skills of the operator. With the right approach, a Siomai King franchise can be very profitable. It is one of the most affordable franchises in the Philippines.

Dunkin’ Donuts

Dunkin’ Donuts was founded in 1950 by William Rosenberg in Quincy, Massachusetts. It is an American global doughnut company and coffeehouse. Dunkin’ Donuts has become one of the largest coffee and baked goods chains worldwide, with approximately 12,900 locations in 42 countries.

The chain offers products like donuts, bagels, breakfast sandwiches, muffins, donut holes, and other baked goods, as well as a variety of hot and iced beverages. In the Philippines, the investment ranges from PHP 5.80 million to PHP 85.37 million. The profit from a Dunkin’ franchise depends on the type of location you choose and the time and effort you put into developing your business. There are several types of stores you can open, each with its own financial potential. It can be one of the most profitable businesses in the Philippines.

Arabica Coffee House

Arabica Coffee House was founded in 1976 in Cleveland, Ohio, with the goal of serving delicious coffee in a welcoming environment where customers could relax and enjoy the ambiance of a true coffee house. The concept quickly gained popularity, leading to the start of licensing the Arabica brand throughout Northeast Ohio in 1981.

Arabica Coffee House serves only 100% Arabica coffee beans and makes all of its food and pastries in-house to ensure consistency and quality. Known for its delicious drip coffee and specialty drinks such as Café Mocha, Funky Monkey, Almond Joy, Twix, and Nutella, Arabica prides itself on its high standards for every aspect of coffee production.

Arabica specialty coffee involves high-quality processes from growing, picking, and roasting coffee beans to distributing and serving coffee products. Arabica imports the finest green coffee beans from over 40 countries, roasts each type separately for optimum flavour, and then blends the beans after roasting. These coffees are thoroughly tested at the purchasing, roasting, and packaging stages to ensure top quality. Arabica Coffee House offers franchise opportunities with fees as low as PHP 14.6 million. The total initial investment ranges from PHP 29.3 million to PHP 102.7 million. The company is confident in delivering consistent quality; as they say, “the proof is in the cup.”

McDonald’s

McDonald’s was founded in 1955 by Richard James McDonald and Maurice James McDonald, collectively known as the McDonald brothers. It is headquartered in Chicago, IL. McDonald’s is the world’s largest restaurant chain by revenue, serving more than 69 million customers daily in more than 100 countries at more than 70,000 outlets by 2024. McDonald’s, while famous for its hamburgers, also offers cheeseburgers, chicken products, French fries, breakfast items, soft drinks, milkshakes, wraps, and desserts.

The capital investment for a McDonald’s franchise in the Philippines ranges from Php 32 million to 45 million, with a franchise fee of Php 1.32 million. The investment cost for a franchise depends on the type of store or site the company offers. CAPEX at the time of construction is approximately $1 million USD, or the equivalent in Philippine pesos. This includes architectural planning and design fees, building and leasehold improvements, air-conditioning, kitchen exhaust and stainless steel fabrication, point of sale systems, kitchen equipment, seating, signage and décor, other furniture and fixtures, and requirements mandated by the government. The cost depends on factors such as the type and size of the restaurant, the suitability of the existing building, and whether the site is provincial or within Metro Manila.

RAMEN IROHA

Since 2009, RAMEN IROHA has won the sales award five times at Japan’s largest annual ramen festival, the Tokyo Ramen Show. Their “Toyama Black Soy-Sauce Ramen” is a strong black soup made with fish oil and a long simmering process that makes it easier to drink. This ramen is the unique pride of Toyama Prefecture.

If you take a RAMEN IROHA franchisee, they will teach the franchisee how to prepare ramen and manage their business. They will send condiments, such as soy sauce, from Japan and help the franchisee design their store. However, the franchisee must provide raw materials, such as meat and eggs, locally. They will not cover labour or store construction costs, so the franchisee must pay for those expenses.

They have six stores in Japan and 12 franchise stores worldwide. Although they have full confidence in their products, for long-term success, franchisees need to adjust the taste of the ramen to suit local preferences and culture. Ramen prices vary by country. They recommend that prospective franchisees visit our stores in Japan to try out our products before deciding to franchise. All travel and accommodation costs will be borne by the franchisee.

The initial investment for a one-unit franchise is PHP 26.4 million. The payback period is approximately 12 to 24 months, depending on the terms. The monthly royalty fee is 6% of gross sales.

Lay Bare

Lay Bare started in the Philippines in June 2006 and now has 150 branches nationwide, of which 60 are company-owned and 88 are franchised locations. The first branch opened in Makati, Metro Manila, specialising in waxing services using the cold wax technique. It is the first and largest hair removal salon chain in the Philippines.

Lay Bare waxing salons offer gentle and affordable hair removal services using all-natural Chinese wax jelly. They offer various body waxing services, including underarm, leg, Brazilian, and eyebrow threading, at much lower prices than high-end salons or spas that only offer hair removal as a side service.

To become a franchise partner, the franchisee must be passionate about waxing with experience in business administration, marketing, or customer service, although this is not required. Franchisees must also have local affiliations in the market they wish to serve, be comfortable following the system and contributing to improvements, and have sufficient funds to sustain the business. They offer franchises for Lay Bare, Passionel, and Le Barre Plus. The franchise fee is PHP 672k, which includes initial franchise training, use of proprietary marks and logos, and pre-opening assistance. There is also a 6% royalty fee on gross service sales.

The cost of opening a branch ranges from Php 2.2 million to Php 3.3 million for a space of 50 to 60 square metres, and the ROI period is about 24-36 months. They provide training and learning sessions to keep franchisees updated with branch standards. They also have a group of accredited contractors who can provide cost estimates, and their technical team, which includes professionals from the design and construction industries, will assist franchisees in building your branch. Franchisees must purchase supplies from Lay Bare.

TokTok

TokTok offers a delivery service app designed for fast delivery of groceries, beverages, and other products.

They specialise in high-quality food made from the best ingredients, which promotes a healthy, balanced lifestyle. TokTok delivery service app franchises are available worldwide. This business is accessible to entrepreneurs with a low budget, requires minimal time commitment to run, and promises quick paybacks. TokTok’s franchise fee is PHP 16,880, and the total initial investment ranges from PHP 58,888 to PHP 288,888.

Conclusion

If you are thinking of getting a franchise in the Philippines, this article can help you. If you follow the proper rules and regulations set by the brand, a franchise can be a profitable business idea. Because they are already well known in the market, it becomes easier for a new business to win the trust of customers and make their new franchise successful.

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