Business Format Franchise

Ang business format franchise ang pinaka common type na franchise ngayon, dito ang franchisor is
provided nya ang buong business format sa kanyang franchisee,Kasama yung kanilang
trademarks,logo,marketing plan at operational manual. This type of franchise can be found in a number
of industries like sa fast food, restaurants, business services, education, example is Mcdonald’s, Burger
King, Starbucks , Dunkin’ Donuts. Etc.

Product Distribution Franchise

Sa product distribution franchise,ang franchisor is responsibilad niya mag provide ng kanilang product
na awtorisadong ibenta ng kaniyang [Link] sakop lang ng license na ibibigay ng franchisor is
yung trademark at logo,hindi kasama yung whole system ng pagpapatakbo ng [Link] parin
guidelines na manggagaling sa franchisor na kailangan parin sundin ng franchisee. Pero ang franchisee
ay may Karapatan parin in terms sa pagpapatakbo ng [Link] halimbawa ng ganitong franchise ay
mga softdrinks distributors,auto mobile at gas [Link] coca cola, Toyota at shell.

Manufacturing Franchise

So lets say na gusto mo mag open ng coca cola [Link] mo dapat maobtain yung rights ng
coca cola company para magamit mo yung kanilang trade name, trademarks at logo ,para makapag
produce ng kanilang beverage,then pwede kana makapag tayo ng manufacturing [Link] yung
franchisor is provide na nila yung supply ng ingredients then yung franchisee is sila na yung mag
magmimix nung mga ingredients at magpoproduce then pwede na nila I benta o I distribute yung
product.

The Pros

Established brand. a strong brand is the core of a company’s success and is the result of an effective
brand [Link] mataas ang chance na maging successful ka kung isa ka sa nag franchise sa isang
sikat na brand or successful na brand dahil na established na ito ng maayos.

Proven business model and operating system. Using a proven system from your franchisor means that
you can easily adapt it to your store with the confidence that it will work. So kabilang na dito yung online
at delivery options na nakatulong sa may mga businesses na talagang umunlad ngayong may pandemic.

Franchisor support.

So ones na nag franchise ka ,makakakuha ka ng support sa franchisor,tulad ng Financial assistance,

Supplier network.
Mas madali ka ng makakakuha ng mga materials na kakailanganin mo sa daily operation ng iyong
business ,dahil nga yung supplier ay nag ooffer ng bulkuhan ,so it means na kapag bulkuhan yung
material na kukunin is magkakaroon ka ng discount, so maleless na yung expenses mo sa iyong business.

The Cons

Expensive fees and royalties.

Ito yung challenging kapag gusto mo mag franchise sa isang business ,dahil some business is they have a
expensive fees and [Link] mo mag invest ng malaking pera para makapag franchise ng isang
[Link] investment req.35-55 million.

Limited control.

Limitado parin yung control mo ,dahil una kailangan mo sundin yung rules ng franchisor, And sila din
yung nagdidictate ng pricing, operating procedures,and allowable supply [Link] nalabag mo
yung franchise agreement, possible na mawala yung na franchise mong business ,or mawalan ka ng
Karapatan dun sa business.

Brand scandals and head office decisions.

Halimbawa dito sa brand scandals is yung Nag trending nga noon yung fried towel ng Jollibee BGC,so
ang Nangyari naapektuhan din yung ibang branch ng Jollibee, Ang head office ay maaring mag decision
na may negative effect . For example, if you are in a lower-income market and the head office decides to
increase prices, this might lead to a decrease in sales for your store.

Complete Ownership vs Franchise Support. As the owner of the business, you have control over all the
decisions, If you don’t have business experience, then you might make a lot of mistakes that you could
have avoided with support from a franchise.

Ikaw yung magdedecide kung ano ang magiging business branding at yung pricing ng iyong product, ,
and ikaw din yung nakakaalam ng mga rules sa iyong [Link] kapag may sarili kang business
responsibilidad mo din kung ano ang magiging epekto ng decision mo sa iyong business.

Dahil nga sa franchise support ,sila na ang magbibigay training at ibang support na kailangan mo para
makapagpatakbo ng isang business, and mas mataas ang chance na maging successful ka kung may
franchise ka compare dun sa nagsisimula palang ng isang business.

New Brand vs Established Brand. A new brand will not have loyal customers yet. In established brand
they’ll already have customers lined up.

Dito sa new brand is wala pa silang mga loyal customer, which is kailangan nilang gumawa ng marketing
strategy ,kung paano nila mahihikayat yung mga customer, na tangkilikin yung kanilang brand.
In contrast, some established brands just need to open a branch,Meaning na sa established brand,
meron na yang loyal customer na tumatangkilik sa kanilang established brand

Unknown Capital Requirement vs Known Costs. The initial investment of starting up your own business
might be cheaper than getting a franchise, Franchises have at least an estimate of the costs before
reaching a return on investment.

Kapag magtatayo ka ng sariling business is hindi mo alam, kung magkano ang gagastusin sa ipapatayo
mong business,pero dito is mas cheaper compare sa merong franchise,Dito sa known cost is na estimate
na yung pwedeng gastusin nila pero medyo expensive ,[Link] inasal 1.2 [Link].

The Importance of Business Model

The business model helps to target the customer base for the company. It helps in making marketing
strategies, projection of revenues and expenses taking into account the type of Business models and
clienteles.

Every investor needs to review the business model in order to get a Knowledge about the company's
competitive edge. Understanding the business model helps the investors to have a better sense of
financial data.

Evaluating the business model helps the investors to get the overall view about the company’s products,
its business strategies and future prospects.