Business group urges balikbayans to invest in 'tested' franchising

As the government is all bells, steam and whistle in repatriating half the Filipino workforce in Libya, a pioneer of franchising in the Philippines urged balikbayans to invest their earnings in a franchise business. Samie Lim, founder and chairman emeritus of the Philippine Franchise Association (PFA), on Monday told GMA News Online that franchising provides entrepreneurs with a “layer of insurance." He said franchise owners are “90 percent successful," owing to the tested formulas of their mother companies. “You’re doing business for yourself, but not by yourself," Lim said. About half of the 26,000 overseas Filipino workers (OFWs) in Libya are set to come home with the repatriation ordered by President Benigno Aquino III in light of the escalating violence in the North African country. Better in a bad economy In his speech at a franchising forum organized by BPI Family Savings Bank in Makati City, Lim placed his statements within the context of a looming oil and food crisis with the ongoing wave of political and social strife blanketing the Middle East and North Africa. He told an audience of mostly entrepreneurs and members of the press that he sees a silver lining around the impending crises. “When the economy is good, franchising is good," Lim said. “When the economy is bad, franchising becomes even better." An economic crisis usually uproots workers from jobs and consequently grants them retirement and separation benefits, frees up their schedule, and allows them to return to their hometowns where their social networks abound, he explained. “Someone who has the money, someone who has the time, and someone who has the connections" will thrive in franchising, according to the franchising expert. Proteting OFWs' hard earned money Vince Samson, vice president for circulation and special events of Asian Journal Publications — publisher of Balikbayan magazine — said about 1.2 million Filipino retirees from the United States have set their eyes on retiring in the Philippines. In another interview with GMA News Online, Samson said the retirees’ minimum pension of $1,000 (P43,710) will go a long way in the Philippines. The balikbayans’ problem is a lack of technical and practical know-how in starting a business in the Philippines, including the basics in licensing, marketing, and advertising, Samson said, “Meron silang know-how sa America, pero iba sa atin dito. ‘Di ba? (They possess the know-how in America, but ours is different. Isn’t it?)" Samson said. He cited cases of fly-by-night companies that had duped balikbayans by making the unwary believe their company is credible and profitable. Balikbayans would like to protect their hard-earned money, Samson said. Lim emphasized the importance of checking the background of companies selling franchise opportunities by consulting franchise associations such as his own group, the PFA, and the Association of Filipino Franchisers, Inc. (AFFI). A lending program At the BPI Family Bank event, the bank announced its tie-up with the PFA and the AFFI in its Ka-Negosyo Franchising Loan, a lending program the bank launched early this year for franchisers. Loan amounts start at P500,000. It aims to help entrepreneurs borrow money for a franchise business with payment schemes suited to their needs. In terms of support, the PFA and AFFI verify and secure the authenticity of their deals. The Ka-Negosyo Franchising Loan will allow borrowers to pay the interest on their loans in the first six months and afterward together with the principal. Ma. Mercedes Roces, vice-president of BPI Family Bank, told GMA News Online that the scheme aims to cater to start-up entrepreneurs. Explaining payment scheme, Roces said, “’Yung six months, ‘yun ‘yung pre-operating. Hindi pa bukas ang store mo. Kaya magaan ang payment (The six months, that’s the pre-operating. Your store hasn’t yet opened. Thus, the payment is light)." Advice for the aspiring entrepreneur Lim suggested that Filipino entrepreneurs venture beyond the food sector to franchises in tourism and personal services, for example. OFWs who plan to become entrepreneurs in the Philippines, meanwhile, have been advised to test the waters. Start slow, get a feel for the market, and ensure that business will grow. — VS, GMA News