Tag: PFA

Franchising 201

PFA chair emeritus Samie Lim talks about the nuts and bolts of the thriving sector
/ 05:06 AM January 25, 2019

Samie Lim is the cofounder and chair emeritus of the Philippine Franchising Association (PFA) and the Philippine Retailers Association.

He is also the chair of Francorp Philippines and U-Franchise, the largest franchise consulting company and franchise brokerage company, respectively, in the Philippines.

Here, he talks about the franchising sector and ways to meet the income potential.

Q: What common traits should franchisors look for in leaders within their franchisee’s organizations? What are no noes?

A: Leaders of franchisees need a good balance of entrepreneurial ability and a willingness to listen and follow best practices. Strong franchises are built on franchisees who are able to execute best practices while adapting to their local contexts. Franchisee leaders cannot just rely on the franchisor or their team to do everything for them, they need to be the ones leading from the front line, motivating and monitoring their team.

As strong leaders and entrepreneurs, franchisee leaders tend to have a lot of new ideas and innovations, and it is critical that they have a strong relationship with the franchisors so these ideas can be evaluated and discussed. In fact, one of the biggest innovations of McDonald’s, the Fillet-o-Fish, was developed by a franchisee.

A big no-no is for franchisees to implement major changes in the products or systems without having proper discussions with the franchisor as this leads to inconsistencies in the brand experience for consumers, thus affecting the brand as a whole.

Q: What would be the ideal minimum time a franchisee should spend in their franchise before sales and profit starts to deteriorate? Can you share the top five key tasks they should do routinely as good business practice?

A: Although franchising has a 90 percent success rate, it is still critical that franchisees spend time managing the business. This does not mean being in the store ever single day, but being present to take charge of key aspects of the business. Depending on the size of scale of the business, franchisees can spend a few hours a day to a few hours a week on the business. Key tasks they need to do are to:

Set targets and evaluate the financial performance monthly

Regularly visit the stores to do quality and procedural audits

Speak to customers to get first hand insights and observations about the business

Hire and motivate the right team to run the business

Regularly discuss with franchisors and fellow franchisees on new best practices

Q: Some franchisors, like the Potato Corner, are starting to allow employees or busy individuals to be franchisees but management remains with the franchisor. Will you see more franchisees like this? Why or why not?

A: Franchising is about using other people’s money, time and networks and this has been the success formula of franchising over the past 20 years. As franchising has matured in the Philippines, there have been a combination of innovative franchise management practices.

For organizations that lack capital but have an abundance of talent, franchising can be used to gain scale using other people’s funds to build new stores and set up presence in new markets while franchisors retain management control.

But for most large organizations, the key resource they lack is not capital, but hiring the right people. This is where franchising has a large advantage, as franchisors get access to owners who manage their stores, instead of salaried managers. So a lot of brands such as petrol stations and convenience stores have adopted company owned-dealer operated models where franchisors invest in capital, but franchisees operate the stores.

This gives exponential scale as it allows anyone, no matter what capital level they have, to be a franchisee as long as they exhibit strong leadership and management potential.

Q: For new franchisors, what are some of the most often neglected parts of a franchise contract and why are these important?

A: When getting into a business, entrepreneurs tend to be quite optimistic so rightly focus on establishing and growing the business. Because of this optimism, they often neglect an important part of the contract, namely the termination, renewal and relocation clauses. Strong franchise agreements should not only define the obligations of the franchisees and franchisors, but also the right processes and procedures in case the business does not do as well as initially planned.

Franchises can close because of many factors—from changes in the competitive landscape, changes in the foot traffic of the location or changes in the circumstances of the franchisees—so franchisees should know the correct remedies for these situations to avoid misunderstanding down the road.

Q: What do you think will be the effect of ease of doing online business on franchising?

A: Although online platforms will continue to rapidly grow, the trend globally is to have a hybrid of offline and online presence to maximize the business opportunities. Traditional brick and mortar franchisors have already started utilizing online channels to improve their reach.

What’s more interesting though is that we see online businesses tapping the power of franchising to create an offline store network. With brands such as Amazon and Zalora experimenting with brick and mortar stores, it’s only a matter of time for online retailers to realize that offline retailing can be done better and faster using other people’s money, time and networks. Franchising would allow online players to focus on their core competence in brand and product development, while their franchisees focus on store operational excellence that give the brand a good offline footprint.

Q: You and your colleagues are planning for the annual Franchise Asia Conference on March 27 to 28 and Franchise Asia Expo on March 29 to 31 in SMX MOA, what new things can people expect this year?

A: This year’s Franchise Asia will be the biggest one we’ve ever staged. Because of the tremendous success of the Franchise Food Park and Innovation Hub, we’ve increased the exhibit area by over 22 percent in the 2nd floor. This will allow attendees to see and experience more of the newest and freshest food franchise concepts. To keep the expo exciting, over 35 percent of the exhibitors will be new exhibitors and concepts. And to make it easier for people to attend, this year’s Expo was moved to March 29 to 31 instead of July so that more favorable weather conditions would allow more people from around the Philippines and from other countries to visit Asia’s largest franchise expo.

As for the International Franchise Conference (March 27 and 28), delegates can expect to hear from over 50 world-class international and local experts from Potato Corner, 7-11, McDonald’s, Jollibee, Happy Skin, Sunnies Studios, SM, Kantar World Group and more.  —CONTRIBUTED

Note: This article is copied from the Philippine Daily Inquirer published in the newspaper on Jan. 25, page B6 and is available online at https://business.inquirer.net/264106/franchising-201

Limjoco recognized at int’l women entrepreneurs conference

By Jennylei Caberte (The Philippine Star) | Updated October 16, 2017 – 12:00am

MANILA, Philippines — The Philippines will take center stage next month as the country’s franchising ambassadress and mother of Philippine Franchising, Ma. Alegria “Bing” Sibal-Limjoco will be recognized by the International Women Entrepreneurs Challenge (IWEC) 2017 at the 10th Annual IWEC Conference at the Microsoft main office in Washington.

IWEC is a New York-based non-profit organization which mission is to connect and develop a global network of successful women business owners.

Limjoco was nominated by the Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business organization, representing Francorp Philippines.

Limjoco has been a two-term president and currently the vice chairman of the Philippine Franchise Association (PFA). She is the first Filipino and first Asian to earn the Certified Franchise Executive, a mini-MBA on Franchise Management at the University of St. Thomas in Minneapolis, US, which is accredited by the Institute of Certified Franchise Executives of the US-based International Franchise Association.

Limjoco has represented the Philippines through PFA in various international franchise organizations most notably the World Franchise Council and the Asia Pacific Franchise Confederation and has brought Philippine brands in various international franchise shows in the US, Europe and Asia.

Bing, as she is fondly called in the local and international business industry, dreamt of being a diplomat. But her father who owns Phoenix Publishing House asked her to study in New York as he wanted her to take over the business someday.

New York, the center of the world’s business and commerce, was a world away from Manila. The busy streets, the skyscrapers, and the hustle and bustle of daily life in a big city helped create a highly competitive environment for Limjoco.

Despite her reservations, Limjoco became inspired. The competitive spirit and the drive that only a city of New York’s stature can bring has made Limjoco see herself in a different light — that of an entrepreneur.

“I became a business minded woman when I studied in New York. Studying overseas makes you more active, competitive and business-minded because you have to prove what you are despite the discrimination. That way, I become engaged in business and served my father in the publishing industry,” Limjoco said.

She earned her AB Foreign Service degree from St. Theresa’s College, Interior Design from the New York School of Interior Design, and her Masters in Business and Economics from the University of Asia and the Pacific.

IWEC’s reach encompasses women who are in the global marketplace and want to expand, and those who are ripe to get into the marketplace. IWEC’s ecosystem is comprised of women-owned companies around the globe whose combined annual revenue is over $25 billion, and who employ over 125,000 workers worldwide. IWEC’s constituents represent some of the most influential businesswomen from the world’s most important emerging and established regions.​

Limjoco’s steady hand and guidance have helped new businesses and brands prosper in an ever-changing and challenging business environment in the Philippines, through the PFA and Francorp Philippines.

“I find so much fulfilment in seeing businesses grow and it gives me personal satisfaction to know that I have contributed to their growth,” she said.

This article is copied from the Philippines Star as published in the newspaper on october 16, 2017, B11, and can be found online at http://www.philstar.com/business-usual/2017/10/16/1749094/limjoco-recognized-intl-women-entrepreneurs-conference

PFA holds regional franchise exhibit in Iloilo

As part of intensifying efforts to promote franchising as a path to entrepreneurship and as a business model to grow small businesses across the country, the Philippine Franchise Association (PFA) recently held a 2-day franchise show at Robinsons Place-Iloilo. Dubbed Franchising Negosyo Para sa Iloilo, the said event is part PFA’s regional roadshow series to bring franchising and its benefits in regional areas. Featuring a franchise exhibit, business matching sessions and seminars on How to Invest in the Right Franchise and How to Franchise your Business, the said event attracted visitors from Iloilo and surrounding cities and provinces. Photo shows Department of Trade and Industry (DTI) – VI Regional Director Rebecca Rascon and PFA President Alan Escalona (1st row, 6th and 7th from left, respectively) with (from front, L-R) Robinsons Place Iloilo Regional Marketing Head Rofel John Parreno, PFA Director for MSME Promotions and Development Richard Sanz, Iloilo City Government Local Economic and Investment Promotion Office Head Ritchel Gavan, PFA Director for Education Yvette Pardo-Orbeta, Federation of Filipino-Chinese Chamber of Commerce-Panay Director Walter Uy, Atty. Suzette Mamon of Iloilo Provincial Government, PFA Director for Social Innovations/CSR Johnny Que, DTI Iloilo Provincial Director Diosdado Cadena, Jr., (back, L-R) Philippine Chamber of Commerce and Industry – Iloilo Director Lester Dan Sollesta, PFA Director for ASEAN Sam Christopher Lim, Overseas Workers’ Welfare Agency Region VI Program Services Division Chief James Mendiola, PLDT Enterprise Relationship Manager Cristian Gil Vincoy, BPI Family Savings Bank VP and Loan Product Marketing Head Noel Altamirano, PFA Membership Director Rebecca Bucad, PFA Director for NCR Siu Ping Par, and Iloilo Business Club Chairman Juan Jose Jamora III during the opening ceremony.

PHL’s Limjoco among top winners in international women entrepreneurs tilt

By BusinessMirror – SEPTEMBER 5, 2017

The Philippines’s Ma. Alegria “Bing” Sibal-Limjoco is among the select lineup of global entrepreneurs who will be recognized by the International Women Entrepreneurs Challenge (IWEC) 2017 at the 10th Annual IWEC Conference at the Microsoft main office in Washington, USA, in November.

The IWEC is a New York-based not-for-profit organization whose mission is to connect and develop a global network of successful women business owners. IWEC’s reach encompasses women who are already in the global marketplace and want to expand, and those who are ripe to get into the marketplace. IWEC’s ecosystem is comprised of women-owned companies around the globe whose combined annual revenue is over $25 billion, and who employ over 125,000 workers worldwide. IWEC’s constituents represent some of the most influential businesswomen from the world’s most important emerging and established regions.

Limjoco, representing Francorp Philippines, was nominated by the Philippine Chamber of Commerce and Industry. Acknowledged as the Woman Icon of Philippine Franchising, Limjoco is a two-term president of the Philippine Franchise Association (PFA) and is currently the vice chairman of the association. She is the first Filipino and first Asian to earn the Certified Franchise Executive, a mini-MBA on Franchise Management at the University of Saint Thomas in Minneapolis, USA, which is accredited by the Institute of Certified Franchise Executives of the US-based International Franchise Association.

Over the years, Limjoco has represented the Philippines through the PFA in various international franchise organizations, most notably the World Franchise Council and the Asia Pacific Franchise Confederation and has brought Philippine brands in various international franchise shows in the US, Europe and Asia.

From 2014 to 2015 the PFA tapped the expertise of Limjoco, as CEO of Francorp Philippines, the country’s foremost franchise developer and consultancy firm, to be the key resource person in the Franchising Regional Enterprises Women Project undertaken by the PFA. The said project took the PFA to four areas in the Philippines, namely, South Luzon, the Visayas, Northern Mindanao and Southern Mindanao, inspiring and encouraging women entrepreneurs to grow their business through franchising.

Limjoco will receive the award at the 10th Annual IWEC Conference at the Microsoft main office in Washington.

This article is first published by BusinessMirror: http://www.businessmirror.com.ph/phls-limjoco-among-top-winners-in-international-women-entrepreneurs-tilt/

PRA’s Limjoco hailed in international awards

(The Philippine Star) | Updated August 28, 2017 – 12:00am

MANILA, Philippines – Philippine Retailers Association (PRA) vice chairman Ma. Alegria Sibal-Limjoco was named as one of the awardees of the 2017 International Women’s Entrepreneurial Challenge (IWEC) Foundation.

Limjoco’s latest recognition has scored PRA another victory as an organization managed by multi-awarded women whose leadership are not only recognized locally, but also in the international arena.

IWEC is a New York-based non-profit organization whose mission is to connect and develop a global network of successful women business owners.

Last year, Limjoco was also recognized by the Philippine Council of Associations and Association Executives “Ang Susi” Awards as the ‘Association Board Member of the Year.’

*This article is published online at http://www.philstar.com/business/2017/08/28/1733264/pras-limjoco-hailed-international-awards and was also published in The Philippine Star newspaper, August 28, 2017

UST grad turns thesis into diner in Manila

by Othel V. Campos, posted August 26, 2017 at 06:01 in The Manila Standard

While most students are doing thesis to comply with the requirements for a college degree, this young entrepreneur turned hers into a business.

Celine Tabia says her thesis has become a diner called Chiquitos, which caters to students passing along Laong Laan and Tolentino Streets near University of Sto. Tomas in Manila.

“Chiquitos was still a thesis in 2009. I started out the business in 2010 while finishing school at UST. My mom and dad helped me pull it through. Mom used to take orders while Dad washed the dishes and kitchen stuff. Our household help did the cooking. We used to operate a 10-seat capacity in our first branch in Asturias. It ran for two years,” she says.

Tabia says she did a thesis in compliance with her BS Commerce Degree, Major in Entrepreneurship.

Chiquitos was named after her late grandfather who was fondly called Quito and her pet Chi.

The diner’s main offerings are chicken chops—small deep-fried cuts of chicken breast topped with choice sauce from a select list of proprietary sauces, all crafted by Tabia herself.

She says meal choices come and go but the main attractions continue to be the chicken chops, hand-pulled beef and a select roster of student meal paired with drinks starting at an affordable P70 per meal.

After Chiquitos’ first branch was closed because of the renovation works on the building that used to house the diner, Tabia used her earnings to bring back Chiquitos at a better spot along Tolentino Street, now bigger with a 50-seat capacity.

With her boyfriend as a business partner, they also set out to open another branch of Chiquitos at a busy nook along Laong Laan Street.

“We did this so as to cater to the student crowd frequenting the area. But as I see it, the sales were sort of divided on both branches. Nevertheless, both branches are doing well especially during the school season,” she says.

The Tolentino branch can rake in as much as P25,000 in sales on a good day, she discloses.

A middle child, the second from a brood of four, Tabia has never felt the so called “middle-child syndrome” because of the love and attention her parents lavishly give her and her siblings.

With support from her parents, she still does most of the meal preparations at home like meat marination and sauce making.

Her entrepreneurial skills first manifested when she was still a high school student at St. Scholastica’s College where she used to peddle small cute notebooks to schoolmates.

“I bought those cute notebooks from National Bookstore at P2 each and sold them for P10 apiece to my classmates. Back then I thought that was a good price since the notebooks were really pretty,” she says.

In college, she dabbled in selling ladies apparel and opened a online store she fondly calls AntiFashion, where she sells her own creations. Collaborating with a dressmaker in Taytay, Tabia came up with a unique line of ladies’ wearables.

The shop now is an amalgamation of apparel imports from Bangok and personal designs of Tabia.

“For me, Chiquitos is a work I love but AntiFashion is the play part that I like,” she says.

Tabia won first prize for the Next Gen Entrepreneur Award during the 27th Franchising Expo in July 2017.

*This article is copied from The Manila Standard‘s website: http://thestandard.com.ph/business/biz-plus/245446/ust-grad-turns-thesis-into-diner-in-manila.html

PFA’s Note (erratum): The competition is called “The NxtGen in Franchising Awards 2017”, with the elevator pitch held during Franchise Asia Philippines 2017 International Conference last July.

PCCI Announces Francorp CEO Ma Alegria Sibal-Limjoco as 2017 IWEC Awardee

Considered as one of the most prominent names in the Philippine franchising sector, Ms. Limjoco is a two-term President of the Philippine Franchise Association (PFA) and is currently the Vice Chairman of the Association. She spearheaded the first Philippine hosting of Asia’s biggest franchise event – “Franchise Asia 2011”, which successfully brought into the country notable names in the international franchising community as well as the world’s top franchise brands. Ms. Limjoco has represented the PFA in various international franchise events including the World Franchise Council as well as various international franchise shows in the US, Europe and Asia. Ms. Limjoco has been conferred with numerous recognitions.

Bing will be attending the 10th Annual IWEC Conference, held on Nov. 12-14th in Redmond, Washington, to accept her award.

The 2017 IWEC conference, whose theme is “Connecting Women Businesses Globally: Accelerating Growth through Innovation & Technology”, celebrates a milestone: IWEC’s 10th anniversary. The conference is sponsored by Microsoft and hosted at their corporate headquarters in Washington state. The theme of the conference is very fitting not only for the venue, but for the emphasis that IWEC places on mentoring, education and cross-collaboration across borders. The conference agenda is a thought-provoking set of panels and presentations covering threads such as “Doing Business in the U.S.”, “Artificial Intelligence” and “Cybersecurity and Blockchain”, among others.

Congratulations, “Bing!”! We thank our partners at the Philippine Chamber of Commerce for their participation and engagement with IWEC.

McDonald’s Philippines wins big at the Franchise Excellence Awards

THE PHILIPPINE Franchise Association (PFA) recognized Golden Arches Development Corporation (McDonald’s Philippines) for its outstanding work in the franchising industry during the recently held Franchise Excellence Awards at the SMX Convention Center. The quick-service restaurant chain bagged six awards: Best CSR Program for Ronald McDonald House Charities (RMHC) Read to Learn program, Best Overall Marketing Campaign under the Food category, International Master Franchise Award, Regional Franchisee Awards for Ray Ordoveza (South Luzon) and Caroline Andrade (Visayas), and National Franchisee Award for Ray Ordoveza. In photo (L-R) are PFA President Dr. Alan Escalona, PFA Vice-Chairman Bing Sibal-Limjoco, Regional Franchisee for Visayas Awardee Caroline Andrade, McDonald’s Chief Happiness Officer Ronald McDonald, Rainbow Station Founder and Chairman Gail Johnson, BPI Family Savings Bank President Ginbee Go, PFA Chairman Emeritus Samie Lim.

PH as global franchise hub is becoming a reality – Lim

By Bernie Cahiles-Magkilat, Published July 23, 2017, 10:00 PM, Manila Bulletin

The Philippines as global franchising hub is now becoming a reality with international sourcing, concepts and branding converging in the country as it now hosts also the world’s biggest annual franchising event.

Samie Lim, the acknowledged franchising guru not just in the Philippines but abroad, said at least 150 foreign brands participated in the recently concluded Franchise Asia Philippines 2017 Expo with record breaking 40,000 delegates.

The Philippines has also produced a total of 150 Certified Franchise Executives, the largest number among countries.

“We are now the largest franchising hub and best attended. The Philippines as a franchising hub is now becoming a reality,” said Lim, chairman emeritus of Philippine Franchising Association, hosts of the annual Franchise Asia.

Some of the foreign franchise associations and consultancy groups also participated in the last conference and expo.

The World Franchise Associates with over 50 members had a big pavilion, while other consultancy groups from other countries, including the US, have brought in their own brands. For instance, Singapore has 8 same as Indonesia while Thailand has 6.

Francorp Philippines, the professional organization founded by Lim to help companies come up with their franchise systems, has already a total of 50 people helping various concepts turn into successful franchise modules.

Normally, Francorp conducts seminars for 200 people with 50 returning for consultations and perhaps half of them finally going through the franchising process.  Preparing the franchise system for a particular concept can be tedious, taking 6 months to a year.

The reason the Philippines is realizing the goal of a franchise hub is the ability of Filipinos to put up the concepts into actual franchise programs.

“Other countries are learning from us,” said Lim.

But among ASEAN countries, Thailand ranked best in terms of concepts, according to Sam Christopher Lim, chair of the Franchise Asia Philippines 2017 Conference.

“Thais are very creative but that is also a big problem because if you think you can do it better, you will not allow somebody to handle it or offer it via franchising, thus stifling that entrepreneurial drive,” he said.

“But Filipinos can learn, teach and still hold on to their entrepreneurial spirit,” said the young Lim, a former Unilever brand manager assigned overseas but is now being groomed to follow his father’s footstep in business.

Already, there have been a good number of Filipino concepts with successful franchises. In fact, as much as 40 percent of the franchisees of the more than 500 booths at the three-day expo were clients of Francorp.

Some of the successful brands under Francorp include Orayspa, The Generics Pharmacy, Potato Corner, and Reyes Haircutters, to name a few.

Three new local concepts on food, academic tutorial and cars detailing are going to the US to compete among other concepts.

“We are not talking here of 100 branches because the new generation come to us and are targeting 1,000 stores,” he said.

“We are moving closer to becoming the global franchise hub.”

 

*This article is a re-post from: http://business.mb.com.ph/2017/07/23/ph-as-global-franchise-hub-is-becoming-a-reality-lim/

Franchise Excellence Awards

The Philippine Franchise Association gathered local and international business and franchise leaders who graced the Franchise Excellence Awards 2017 rites at the recently-concluded Franchise Asia Philippines 2017 Conference and Expo. Photo showa (1st row, 5th from left) PFA chairman emeritus and father of the Philippine franchising Samie Lim; (1st row, 3rd from right) PFA vice chair Ma. Alegria Sibal-Limjoco; (2nd row, 3rd from left) Trade Secretary Ramon Lopez; (2nd row, 3rd from right) Philexport president Sergio Ortiz-Luis; (3rd row, from left) PFA director for MSME Richard Sanz; PFA director for ASEAN and Special Projects Sam Christopher Lim, Cambodia Franchise Association vice chairman Daniel Li, Philippine Chamber of Commerce and Industry (PCCI) president George Barcelon, Cristina Hernandez and Joey Garcia of Minor Food Group Thailand, and (3rd row, righmost) PCCI director in charge of Agriculture William Co, together with international franchise holders who attended the awarding ceremony.

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