Homegrown and small franchises see steady 20% growth in sales

Homegrown and small franchises are expected to post a steady 10-20 percent growth in sales this year on higher consumption and overseas expansion, especially in ASEAN.

John Chung, president of the Association of Filipino Franchises Inc. (AFFI), said at the launch of its 16th Franchise & Business Expo that sales of the small and homegrown franchises could grow P130 billion this year from P107 billion in 2016 due to the consumption led economy and more members expanding operations in ASEAN following the economic integration of the region.

About 20 AFFI members, including Chung’s very own Acquasuisse, Fiorgelato, have already presence overseas. There are also 30 new members of AFFI including Uratex and Gardenia Bakeries.

At present, AFFI has close to 200 members of which 70 percent are already into franchising, employing 200,000 while the rest are non-franchise businesses.

Chung said there are 300 exhibitors in this year's expo on Sept. 29-Oct. 1 at the World Trade Organization. The three-day expo hopes to bring in 10,000 to 15,000 in foot traffic.

What is unique in this year's franchise and business expo is the inclusion of nonfranchise businesses to include suppliers, equipment and packaging firms and online/website set-up services companies.

Chung said that as the voice of small and homegrown franchises, AFFI has started opening since two years ago its membership to non-franchise small businesses in order to nurture these small entrepreneurs on hopes they can go into franchising eventually.

Richie Cuna, owner of ice cream Fiorgelato, said they are making this year's expo extra special to mark AFFI's 20th anniversary. Cuna noted that AFFI has grown to almost 200 now from only 5 members two decades ago.

"We are also showcasing not just franchise concepts but also simple entrepreneurs," said Cuna noting that franchises used to account for 70 percent of exhibitors but this gone to an equal 50-50 sharing at present.