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Franchising Versus Having Your Own Business
Manny,
If you will ask me a question if I’m a fan of franchising, well I can say yes. Because franchising can be the easiest way for a starting businessman to have his or her own business. But as much as possible having your own brand and business is more preferable, that is, if you have the patience, passion and some sort of luck to continue the business that you have started.
Well, that is only my opinion and I know that everyone is entitled to his own opinion and it’s up to us what choices we want to take. I have posted this topic because just yesterday, my long time friend and office mate called me up the second time and we were discussing about his problem on what business he has to take.
Since he was not an entrepreneur type of person, I suggested that having a food cart franchise is a better choice rather than having your own food cart and your own brand name. But the big issue there is not just getting an unpopular franchise because that is definitely wasting your money. Going on our conversation I thought he agrees with my suggestion to him but he insisted that it’s better to have your own business and brand name because the only one who will profit from that system is the franchiser, not the franchisee.
He mentioned that if I bought the equipment from the franchiser, like for example, a siomai food cart and if I decided to quit the business, then it will be a waste of money. He also mentioned about the product that a franchisee will sell will be limited and the one who will profit the most is the franchiser. And about paying for the franchise fee, the franchiser is always in the win win situation because whether the franchisee profits or loose on his venture, the franchiser already got the money that the franchisee paid.
Well he does have a point there. If you will look it on a consumer or a layman point of view. But if you will look at it in another angle, and ask yourself, why will someone pay a large amount of franchise fee for measly food cart business? Anyone can duplicate a food cart and compete. So what is it? it’s the ‘Brand’ and the ‘System’. Those are the things that a franchisee buys from a franchiser. It’s not only the product or the equipment like what most people think. That is why buying a cheap unknown franchise is a big NO. And many people are being scammed by promises of having an autopilot franchise business that will never get off the ground. So how about you? what is your opinion?
nice all to read your comments and suggestion first of all I would like to say it’s better you have knowledge about business matters before you put up your own business in my case I started my business in it is franchise last 2013 so the business is only more than a year and I was totally shocked since I don’t have knowledge the cost of everything since aside from franchise fee you need to have money for the renovation since u have to follow the system aside from that since I don’t know any body here in manila the contractors wants to charge me a lot so decided to take somebody in our place but then you need to house them feed them so it is the same.what I tell you be prepared for an extra money aside from your budget example if your budget for your business is 1.2 million atleast you have haft million for your expenses while building your business not only these since some franchisee will tell you they will help you to promote your business before opening please don’t rely since after you paid your franchise fee they might not help you which it happened to me so never expect a quarantee that what they tell you during the seminar they will do it to you.you have to have a quarantee letter sign both the parties infront of a lawyer so atleast you have evidence that they need to fullfill what they promised you.or venture yourself and see what business is going before putting your own.
I have been thinking of franchising myself, I find it as additional income, but based on what I have read, there is a risk and a risk that have to be manage and assessed. Salamat sa lahat ng nagshare at least we know from every angle.
tnxs Mr. Jimmy for the wonderful suggestions to us. .esp. for all beginners out there, who really want to start for a new business.. @ to mr. manuel tnxsalot also… pls., maganda lahat suggestions nyo both franchise and to put ip ur own business.. but honesly mr. manuel i hope u can also suggests more to all beginners like us, wats d best thing to do for a new beginner to put up a business.. bcz for me i really want to put my own business.. un palce meron na, d prob. is i need someone to assist me for this.. mre advice pls. tnxs..
hi jimmy,,thanks sa pagshare ng experience mo!nabigyan moko ng idea regarding sa franchising.
balak ko din kasing mag franchise sana ;O
mr.montala ,kindly advise me please kung saan pwedeng umattend ng free seminars?medyo takot pa po akong magbusiness jan sa pinas,wala po kasi akong experience/knowledge?
maraming salamat po!
im glad i saw your page!
Share ko lang ito.I’m a former OFW 20 yrs sa Japan.2008 nung nagdecide na ko mag-stay dito for good.Bago pa ako umuwi dito sa atin marami na akong nabasang libro.Most especially ,RICH DAD POOR DAD by Robert Kiyosaki.Accdg to him franchising and networking ang the best business na pasukin.Franchising kasi may sistema na.Networking kasi maliit ang puhunan pero may unlimited income depende sa katatagan ng network business na pasukin mo.Isinama na rin nya ang stocks at forex market.Lahat ito ay pinasok ko.Sad to say ,nalugi ako sa franchising at forex stock.Yung sa networking bale ngayon ang source of income ko.Ask ko sa sarili ko saan ako nagkamali.Ang laki ng naubos na pera sa akin considering it as a “blood money”.Ito ang tawag namin sa perang pinaghirapan ng mga expat.Di lahat ng franchising ay kumikita base sa experience ko.Kapag sa mall mo ito ilalagay talo kana.Yung upa ,pinakamahina na ang 25k a month.Di naman laging mabenta.May expenses ka pa sa supply at sa tao mo.Basic net income 10k to 15k a month depende sa concept ng franchise mo.Kapag mabenta na ang business mo magdadagdag ka ng supplies at another staff.Gastos ulit dahil dagdag pasahod at bayad sa supplies ulit.Yung net income mo di madadagdagan.Kapag mahina naman ang benta mo,parusa talaga sa mga franchisor.Di mo alam kung saan mo kukuhanin ang ibabayad sa upa,ipambabayad sa supplies at pasahod sa staff.Kapag nag-request ka ng relocation pahirapan pa talaga.Kapag nag-request ka na babaan ang upa mo ang isasagot sayo.”Di po kami nagbaba nagtataas pa po kami”.Kapag gusto mo ng umalis at wala pa sa kontratang pinirmahan mo dimo na makukuha ang downpayment mo sa upa.Karaniwan mga 3 mos ang hinihingi .Kaya halos kinuha lang ng ganun-ganong ang ang pinaghirapang ipon ko na legal namang kung titignan.Wala akong nagawa kundi magsisi.Kaya ang advise ko sa mga OFW na katulad ko.Huag basta2 papasok sa ganitong business.Kung talagang marami kayong pera maganda ang franchising.Huag lang isang franchise ang bilhin nyo.Pinakamababa na ang 5 franchise at yung lahat established na.Why?Kung sa 1 cart may net income ng 10k a month .5×10 =50k ang magiging net income mo a month.The best na talaga ang business na alam mo at masaya ka sa ginagawa mo.At lastly,kung madapa man try na bumangon.MORE POWER!
@nhica
Depende yan sa hilig mo. Mahirap din sabihin kung ano ang papatok kasi depende rin yan sa lugar na itatayo mo ang business at depende rin kung ano ang demand ng tao sa lugar.
Some say that buying a franchise business is the safest way to go. Meron na kasing systema yung Franchisor at maaring naeliminate na rin nila yung mga pagkakamali nila habang ngiistart up sila. Kung bago ka palang ngbubusiness, parang mas comforting nga naman na me tutulong sayo sa mga oras na ngiistruggle ka palang. Pero sa opinion ko, mas maigi yung negosyo na matatawag mong sayo…kung pakiramdam mong hindi ka pa handa, me mga tao naman ang maaring tumulong sayo , maraming trainings at free seminars ngayon na ngkalat para makatulong sa mga gustong mag-umpisa.
Pag bumili ka ng franchise, andyan na yung kilalang pangalan. Pero hindi nmn porke kilala yung pangalan eh kikita ka na, kelangan mo parin ng sariling sipag at tyaga para mapalago mo iyon. Ang talagang nakikinabang sa isang franchise ay ang Franchisor. Dahil meron silang nakukuhang franchise fee buwan buwan. Di ko naman sinasabi na mali ang mgfranchise ka…pero hindi bat mas maganda maging franchisor kesa maging franchisee sa isang banda? =)
@jheycie
Nice comment and you have a point there. Pero ang masasabi ko lang ay “it’s easier said than done” having your own brand and business. Hindi naman porke franchise eh maghihilata ka na at wala nang gagawin. Kailangan din ng sipag at tiaga pero meron nang proven system at hindi ka na mag-eexperimento. On the contrary mas maganda talaga yung sarili mo yung business at hindi franchise kasi nga ikaw ang yayaman ng husto kung mag-ki-klick compared sa kung ikaw ang franchisee.
for me..hangat maari magkaroon ako ng sariling negosyo..sariling product.kasi nag kakaroon ka ng challenge sa buhay kong ang sa product na napili mo ay umunlad.
sa una nga siguro mahirap kailangan sumugal at sa dami ng franchise business ngayon na kailangan mo paghandaan.
kaya mayroon na akong solusyon before ako magstart ng business ay kukuha muna akong training sa TLRC at bibigyan kong sarili ko ng choice kong ano man gusto ko kong negosyo.
happy new year to all,
nice all to read your comments and suggestion first of all I would like to say it’s better you have knowledge about business matters before you put up your own business in my case I started my business in it is franchise last 2013 so the business is only more than a year and I was totally shocked since I don’t have knowledge the cost of everything since aside from franchise fee you need to have money for the renovation since u have to follow the system aside from that since I don’t know any body here in manila the contractors wants to charge me a lot so decided to take somebody in our place but then you need to house them feed them so it is the same.what I tell you be prepared for an extra money aside from your budget example if your budget for your business is 1.2 million atleast you have haft million for your expenses while building your business not only these since some franchisee will tell you they will help you to promote your business before opening please don’t rely since after you paid your franchise fee they might not help you which it happened to me so never expect a quarantee that what they tell you during the seminar they will do it to you.you have to have a quarantee letter sign both the parties infront of a lawyer so atleast you have evidence that they need to fullfill what they promised you.or venture yourself and see what business is going before putting your own.
I have been thinking of franchising myself, I find it as additional income, but based on what I have read, there is a risk and a risk that have to be manage and assessed. Salamat sa lahat ng nagshare at least we know from every angle.
tnxs Mr. Jimmy for the wonderful suggestions to us. .esp. for all beginners out there, who really want to start for a new business.. @ to mr. manuel tnxsalot also… pls., maganda lahat suggestions nyo both franchise and to put ip ur own business.. but honesly mr. manuel i hope u can also suggests more to all beginners like us, wats d best thing to do for a new beginner to put up a business.. bcz for me i really want to put my own business.. un palce meron na, d prob. is i need someone to assist me for this.. mre advice pls. tnxs..
hi jimmy,,thanks sa pagshare ng experience mo!nabigyan moko ng idea regarding sa franchising.
balak ko din kasing mag franchise sana ;O
mr.montala ,kindly advise me please kung saan pwedeng umattend ng free seminars?medyo takot pa po akong magbusiness jan sa pinas,wala po kasi akong experience/knowledge?
maraming salamat po!
im glad i saw your page!
Share ko lang ito.I’m a former OFW 20 yrs sa Japan.2008 nung nagdecide na ko mag-stay dito for good.Bago pa ako umuwi dito sa atin marami na akong nabasang libro.Most especially ,RICH DAD POOR DAD by Robert Kiyosaki.Accdg to him franchising and networking ang the best business na pasukin.Franchising kasi may sistema na.Networking kasi maliit ang puhunan pero may unlimited income depende sa katatagan ng network business na pasukin mo.Isinama na rin nya ang stocks at forex market.Lahat ito ay pinasok ko.Sad to say ,nalugi ako sa franchising at forex stock.Yung sa networking bale ngayon ang source of income ko.Ask ko sa sarili ko saan ako nagkamali.Ang laki ng naubos na pera sa akin considering it as a “blood money”.Ito ang tawag namin sa perang pinaghirapan ng mga expat.Di lahat ng franchising ay kumikita base sa experience ko.Kapag sa mall mo ito ilalagay talo kana.Yung upa ,pinakamahina na ang 25k a month.Di naman laging mabenta.May expenses ka pa sa supply at sa tao mo.Basic net income 10k to 15k a month depende sa concept ng franchise mo.Kapag mabenta na ang business mo magdadagdag ka ng supplies at another staff.Gastos ulit dahil dagdag pasahod at bayad sa supplies ulit.Yung net income mo di madadagdagan.Kapag mahina naman ang benta mo,parusa talaga sa mga franchisor.Di mo alam kung saan mo kukuhanin ang ibabayad sa upa,ipambabayad sa supplies at pasahod sa staff.Kapag nag-request ka ng relocation pahirapan pa talaga.Kapag nag-request ka na babaan ang upa mo ang isasagot sayo.”Di po kami nagbaba nagtataas pa po kami”.Kapag gusto mo ng umalis at wala pa sa kontratang pinirmahan mo dimo na makukuha ang downpayment mo sa upa.Karaniwan mga 3 mos ang hinihingi .Kaya halos kinuha lang ng ganun-ganong ang ang pinaghirapang ipon ko na legal namang kung titignan.Wala akong nagawa kundi magsisi.Kaya ang advise ko sa mga OFW na katulad ko.Huag basta2 papasok sa ganitong business.Kung talagang marami kayong pera maganda ang franchising.Huag lang isang franchise ang bilhin nyo.Pinakamababa na ang 5 franchise at yung lahat established na.Why?Kung sa 1 cart may net income ng 10k a month .5×10 =50k ang magiging net income mo a month.The best na talaga ang business na alam mo at masaya ka sa ginagawa mo.At lastly,kung madapa man try na bumangon.MORE POWER!
helow..manuel..any suggestion..wat in n negosyo?yung maganda umpisahan yung tingin m hnd maluluge..yung tama lng sa puhunan..thanks poh…
@nhica
Depende yan sa hilig mo. Mahirap din sabihin kung ano ang papatok kasi depende rin yan sa lugar na itatayo mo ang business at depende rin kung ano ang demand ng tao sa lugar.
Some say that buying a franchise business is the safest way to go. Meron na kasing systema yung Franchisor at maaring naeliminate na rin nila yung mga pagkakamali nila habang ngiistart up sila. Kung bago ka palang ngbubusiness, parang mas comforting nga naman na me tutulong sayo sa mga oras na ngiistruggle ka palang. Pero sa opinion ko, mas maigi yung negosyo na matatawag mong sayo…kung pakiramdam mong hindi ka pa handa, me mga tao naman ang maaring tumulong sayo , maraming trainings at free seminars ngayon na ngkalat para makatulong sa mga gustong mag-umpisa.
Pag bumili ka ng franchise, andyan na yung kilalang pangalan. Pero hindi nmn porke kilala yung pangalan eh kikita ka na, kelangan mo parin ng sariling sipag at tyaga para mapalago mo iyon. Ang talagang nakikinabang sa isang franchise ay ang Franchisor. Dahil meron silang nakukuhang franchise fee buwan buwan. Di ko naman sinasabi na mali ang mgfranchise ka…pero hindi bat mas maganda maging franchisor kesa maging franchisee sa isang banda? =)
@jheycie
Nice comment and you have a point there. Pero ang masasabi ko lang ay “it’s easier said than done” having your own brand and business. Hindi naman porke franchise eh maghihilata ka na at wala nang gagawin. Kailangan din ng sipag at tiaga pero meron nang proven system at hindi ka na mag-eexperimento. On the contrary mas maganda talaga yung sarili mo yung business at hindi franchise kasi nga ikaw ang yayaman ng husto kung mag-ki-klick compared sa kung ikaw ang franchisee.
for me..hangat maari magkaroon ako ng sariling negosyo..sariling product.kasi nag kakaroon ka ng challenge sa buhay kong ang sa product na napili mo ay umunlad.
sa una nga siguro mahirap kailangan sumugal at sa dami ng franchise business ngayon na kailangan mo paghandaan.
kaya mayroon na akong solusyon before ako magstart ng business ay kukuha muna akong training sa TLRC at bibigyan kong sarili ko ng choice kong ano man gusto ko kong negosyo.