Who we are
The Philippine Franchise Association (PFA) is the voluntary self-regulating governing body for franchising in the Philippines.Â It is the countryâ€™s pioneer and largest franchise association with members ranging from micro to large, both homegrown and international involved in food, retail, services and other types of businesses.
PFA members are bound by the Fair Franchising Standards (FFS).Â By adhering to this Code of Franchising Ethics, the PFA members commit themselves to respect and to apply fair set of provisions in the conduct of sale of their franchises.
We commit ourselves to the promotion of franchising as a tool for economic development and nation-building, through enterprise development and employment generation.
We envision to make the Philippines as the â€śCenter for Franchise Development in Asiaâ€ť by providing the gateway to the entry and export of world class-quality brands, products and services from Asia to the rest of the world and vice versa.
We are also committed to creating programs that will open opportunities for the expansion of Philippine franchises domestically and overseas by assisting micro, small, and medium enterprises (MSMEs), including the development of incubation centers where highly franchiseable concepts can be introduced to the mainstream market.
The Philippine Franchise Association (PFA), a non-stock, non-profit organization, is the voluntary self-regulating governing body for franchising in the country. It was formed in 1995 to organize the growing number of franchise industry players, both homegrown and foreign.
The creation of PFA can be traced back to the success of the 1993 and 1994 Franchise Conferences and Expos pioneered by the Philippine Retailers Association (PRA) with the support of the Private Investment and Trade Opportunities - Philippines (PITO-P).
In 1993, the first International Master Franchise Conference (IMFC) was held with the following objectives: to introduce and explain the concept of franchising to as many people as possible in order to spread the benefits that many Americans, who have become entrepreneurs and businessmen in their own right, have achieved through franchising; and secondly, to introduce new American franchises in the local market.
After the successful staging of IMFC, PRA again hosted the same event in 1994, this time with an added feature - the Philippine Franchise Expo (PFE). The twin activity - the Franchise Conference and Franchise Expo - provided first-hand knowledge and experience on franchising to conference participants and expo visitors. The Expo in particular was envisioned to be a one-stop shop wherein franchisors, franchisees and potential investors can meet and negotiate possible franchise partnerships.
The tremendous success of the Philippine franchises and, conferences and exhibits, as well as the high level of participation and interest they generated, showed that franchising, given the right impulse, could flourish in the Philippines. This inspired the PRA to organize the growing number of players in the industry into a formal association. Thus, on February 7, 1995, the Philippine Franchise Association (PFA) was formed and was registered with the Securities and Exchange Commission on April 17 of the same year.
Since then, the PFA has been actively involved in the promotion of the Philippine franchise both here and abroad. Its annual Philippine International Franchise Conference and Expo (PIFCE) have become an institution for the development and growth of franchising by encouraging the creation of more local franchise businesses and inviting foreign master franchisors to come to the Philippines and get Philippine franchisees. The Exhibit has also been an important marketplace for the countryside expansion of both local and foreign franchises already operating in the Philippines. And to further realize its vision to be the â€śCenter for Franchise Development in Asiaâ€ť, the annual conference and expo has evolved to become â€śFranchise Asia Philippines: Asia to the World and the World to Asiaâ€ť, which is now more in keeping of its billing as the biggest and most anticipated franchise show in Asia.
PFA members are bound by the Fair Franchising Standards (FFS). By adhering to this Code of Ethics, the PFA members commit themselves to respect and to apply fair set of provisions in the conduct of the sale of their franchises. Internationally, the PFA is recognized by the World Franchise Council (WFC), the Asia Pacific Franchise Confederation (APFC) and the International Franchise Association (IFA).
As the pioneer and the premier franchise organization in the country, PFA continues to be â€™voice of the Philippine franchise sectorâ€™ and has accomplished several milestones, some of which are:
- International recognition by the World Franchise Council (WFC), the International Franchise Association (IFA) and the Asia-Pacific Franchise Confederation (APFC). As such, PFA is actively linked with the international franchise community, and is continuously updated with the latest global trends and developments.
- Hosted Franchise Asia 2011, Asiaâ€™s milestone franchise event last year which gave the Philippines, through PFA, the honor to host the convergence of the international franchise community in Manila, thus affirming the countryâ€™s position as a frontrunner in global franchising.
- PFAâ€™s participations in numerous international events helped in its efforts to â€śBring Local Brands to Foreign Brandsâ€ť. Today, we see more Filipino franchise concepts successfully operating internationally, to name a few Maxâ€™s Restaurant; Penshoppe; Red Ribbon Bakeshop; Jollibee; Bench; Chowking; Crystal Clear; Goldilocks bakeshop; Hotshots Flame-Grilled Burgers; Island Souvenirs; Kamiseta; Waffle Time; Potato Corner; Pancake House; Reyes Haircutters; and, HBC Home of Beauty Products.
- Led the growth of the Philippine franchise sector from only 50 franchises in the early 90s, to over 1,300 today. Franchise sector sales grew from USD 714 million in 1997 to USD 11 billion in 2011.
- Jointly with the Department of Trade and Industry (DTI) and the Philippine Chamber of Commerce and Industry, PFA launched the first and only Franchise Excellence Awards (FEA), the Philippines industry awards which recognizes outstanding homegrown and international franchisors in the Philippines. FEA continuous to promote excellence in all aspects of franchising and to enhance Filipino competitiveness to meet global standards.
- In cooperation with the Institute of Certified Franchise Executives (ICFE). International Institute for Franchise Education, Nova Southeastern University in the US, PFA offers the Certified Franchise Executive (CFE) Program with the goal of helping professionalize the franchise sector. Outside the US, the Philippines was the first to offer the course. To date, the Philippines have produced 48 graduates.
- Opened windows for Franchise Financing Facilities for local MSMEs in cooperation with the Small Business Guarantee Finance Corporation (SBGFC), Development Bank of the Philippines, BPI Family Savings Bank, Philippine National Bank, Philippine Savings Bank, Premiere Bank and Land Bank of the Philippines.
- Pioneered the annual publication of the Philippine Franchise Sector Study â€“ now considered as the franchise communityâ€™s â€śhandbookâ€ť or â€śbibleâ€ť.
- Stages annually the premier and the biggest franchise show in the country which has become more global in perspective and international in participation.
- Spearheaded the development of the Fair Franchising Standards (FFS) in the Philippines, a Code of Ethics towards self-regulation among foreign and local sector players. The FFS provides a suitable framework for franchise agreements, foster franchise business relationships, and govern membership and accreditation in PFA.
- Led the dissemination of the Intellectual Property (IP) Code among franchise sector players.
- Integrated franchising in the graduate school curriculum of the top business schools in the country such as the De La Salle University.
- Co-sponsored a number of prestigious international franchise shows in Singapore, Malaysia, Australia, China and the US, and joins the International Franchise Exhibition trade missions with various countries paving the way for the entry of foreign franchises in the Philippines.
PFA Vision and Mission
For the Philippines to be the â€śCenter for Franchise Development in Asiaâ€ť by providing the gateway to the entry and export of world class-quality brands, products and services from Asia to the rest of the world and vice versa.
PFA will continue to
- Be the voice of the Philippine Franchise Sector
- Be a contributing member of the international franchise community
- Be the synergy agent for Asian Franchising
- To promote top Philippine franchises in the international market
- To promote the entry of international franchises to the Philippines
- To help in the nationwide expansion of homegrown franchise concepts
- To assist micro, small and medium enterprises (MSMEs) with high potential to franchise
PFA's Vision for the Next Five Years
LARGE SCALE: International Expansion
Franchising to become a top dollar earner
- Export of top Philippine franchises
- Top Filipino entrepreneurs to own territorial master franchises for the Asia-Pacific region
- Philippines as the Regional Center for franchise development in the Asia-Pacific region
- To develop and maintain top-level connections with government agencies involved in entrepreneurship and employment, reminding them of the favorable impact of franchising
Medium Scale: National Expansion
- Expand existing franchises in the Philippines into nationwide network of at least 100 units
- Tap the Overseas Filipino market for franchise opportunities in the Philippines
SMALL SCALE: Development of MSMEs
- Develop incubation centers to introduce regional food franchise concepts into mainstream locations
- Make MSME franchises affordable at Php 100,000 to 1 million
- Expand these concepts nationwide via franchising
PFA Key Objectives
- To promote and sustain the growth of franchising as a tool for national development;
- To professionalize and educate people in the franchise sector through seminars, training programs and overseas cooperation;
- To encourage members to abide by the FFS in order to enhance and protect the image of the Philippine franchise sector;
- To empower and professionalize small businesses to be able to meet global competition in preparation for borderless international trade;
- To bring in the best franchising formats from all over the world;
- To benchmark best global practices in franchising;
- To liaise with government departments and agencies on matters concerning franchising to promote the growth and development of the sector;
- To provide a forum for Filipino franchisors, franchisees, and suppliers to network, exchange ideas, and explore areas of cooperation;
- To establish and maintain affiliations and/or cooperation with relevant organizations locally and globally; and
- To actively promote Filipino franchises internationally.