PH Franchising Sector: Pivoting to its Golden Age by 2021

Los Angeles PH Franchising Sector 1

Department of Trade and Industry (DTI) Secretary Ramon Lopez delivers his keynote message. (Photo courtesy of DTI)

LOS ANGELES 22 September 2020 – The Philippine Consulate General in Los Angeles attended the opening of the five-day virtual conference on franchising dubbed, “Virtual Conference 2020, Pivoting Towards the Golden Age of Franchising," which was jointly organized by Franchise Asia Philippines and the Philippine Franchise Association (PFA). The Virtual Conference 2020 started on 21 September 2020 (20 September 2020 PDT) and ran until 25 September 2020 (24 September 2020 PDT). 

The Conference aimed to help Philippine franchise brands pivot to this golden age as the country bounces back from COVID-19 pandemic disruption. PFA Founder and Chairman Emeritus Dr. Lim noted that COVID-19 has opened many opportunities for a new breed of franchisers with some of the most creative ideas embracing the new consumer lifestyle. Philippine Franchising’s golden age will see more “mompreneurs” and Overseas Filipinos entering the field.

In his keynote message, Secretary of Trade and Industry Ramon Lopez underscored the Philippine Government’s commitment to help the sector pivot to its golden age. “The DTI will continue to support the franchising sector by espousing the continued reopening of the economy,” said Secretary Lopez. The DTI, through its Philippine Trade and Investment Centers overseas has served as the sector’s arm in catapulting Philippine franchise brands to the global market.

The Philippine Government recently launched the COVID-19 Assistance to Restart Enterprises (CARES) CARES program, with a budget allocation of P1 billion, providing loans for microenterprises, including cooperatives and returning jobless Overseas Filipino Workers (OFWs).

A recent survey by a United States-based franchise think tank, Edwards Global Services ranked Philippines at 2.1, with 1 being the highest, as among the world’s best destinations for franchising. In 2019, the sector contributed 7.2 percent to the GDP, which is equivalent to P1.4 trillion pesos, and 2.7 percent to the gross national income (GNI) which is equivalent to P51 billion. 

As the Philippine economy continues to reopen, only about 6 percent of the 2,000 companies surveyed in April remain not fully operational. When the survey was initially conducted in April 2020, 38 percent were closed and 50 percent were partially operating. The country’s unemployment rate also gives added optimism as it decreased from 17.7 percent in April to 10 percent in July 2020. Full economic recovery is expected by 2021, according to Secretary Lopez. END




Screenshot photos taken during the virtual conference. (Los Angeles PCG photos)

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