Things to know before franchising
sponsible business franchise:
He must have a document issued by the Intellectual Property Office of the Philippines (IPOPHL) stating that he or she owns the trademark being used by the franchise business he, or she is operating,
The franchisor should have his own branches that are earning well and operational for at least over a year. Besides having his or her own branches, the franchisor must also have franchisees who have invested in his or her business.
The complete details on how to operate the franchise must be clearly stated in an operations manual that is being implemented in all of the branches.
It should clearly state all the responsibilities of the franchisor and franchisee. You must not be pressured to enter into an agreement. You are to be given enough time to read and understand the contract or seek legal advice be-
fore signing any document.
He or she should have all the necessary papers needed in running a business. The company must be registered with the following:
a) Securities and Exchange Commission, if the company is a corporation or partnership;
b) Department of Trade and Industry (DTI), for single proprietorship business;
c) Bureau of Internal Revenue, for taxes; d) IPOPHL for the trademark; e) Social Security System for employee security and benefits;
f) Local government unit with duly issued • Mayor’s Permit • Sanitary Permit • Building Permit • Other permits issued by the concerned municipality for business owners and operators
g) Food and Drug Administration for food, spa, salon, janitorial service, and pharmaceutical businesses;
h) Department of Transportation and Communication for Internet café and telecoms businesses;
i) Department of Education for educational and review centers; and
j) Bangko Sentral ng Pilipinas (BSP) for remittance service and pawnshops.
The franchise business should have an office where its franchisees or prospect clients can go and visit, and have employees or staff members assist them on their concerns.
An example of this would be the Philippine Franchise Association, among others.
Besides the abovementioned tips, you must keep in mind to pick a franchise that would put your money into good use. But remember, running a business entails hard work and effort in order for it to prosper.
For more information on franchising, you may contact DTI Direct 751-3330.
The Department of Trade and Industry welcomes all inquiries, complaints, comments and suggestions from consumers. Call DTI Direct at 751-3330 from Monday to Friday from 8 a.m. to 5 p.m. or visit the DTI website www.dti.gov.ph.