The franchising industry is seen growing at a faster rate of 12 to 15 percent this year from 5 to 8 percent last year in terms of revenue but business leaders hope to encourage big companies to make agriculture part of this growing sector.
The industry is also expanding twice the pace of GDP.
Christopher Lim, president of the Philippine Franchise Association (PFA) told reporters at the International Franchise Conference in Pasay City yesterday estimates placed the revenue of franchising at $28 billion last year contributing to about 7.8 percent to GDP.
Lim said food businesses account for half of franchised businesses in the country followed by healthcare while agriculture is picking up.
“We are starting to attract players in agriculture franchising, from mom and pop stores that standardize their products with the same quality and consolidate sourcing for economies of scale so they can lower the cost of production. Food franchises have always prioritized local sourcing,” Lim said.
He added service concepts like “agri drone” and “agri vet” are being introduced for franchising.
According to Lim, PFA has noted regional players are also growing within their localities, generating businesses and jobs.
He said the group continues to push local brands to go internationally. While the Philippines is the 7th largest in the world in terms of having the number of franchises, only 30 of the 2,000 local brands have global presence, of which 80 percent are in food.
