Beginner’s guide to franchise business in the Philippines

Neil Gregori Garen
Jul 3
3 min read

Are you looking for a side hustle that can grow into something bigger? Wondering how you can start a business without building one from scratch? If you're a young professional with limited capital or someone new and just starting a business, getting into a franchise business in the Philippines can be a smart, low-risk way to dip your toes into entrepreneurship.

Franchising allows you to leverage an existing brand, proven business model, and support system while learning the ropes of running a business. But like any investment, it comes with its own set of challenges. Here's a simple guide to help you make wise, beginner-friendly decisions as you explore this path.

Start small and local

You don’t need a massive budget to get started. Many micro-franchise options in the Philippines such as food carts, laundry kiosks, or online-based services can cost anywhere between ₱100,000 to ₱300,000. Choosing a small and nearby location keeps your overhead low and gives you better control of daily operations. It also helps you build a loyal customer base within your own community.

Know the franchise, know the franchisor

It’s tempting to go for well-known brands, but you need to do more than just follow popularity. Research the company’s history, franchisee success stories, and what kind of support they offer. A trustworthy franchisor will provide training, marketing assistance, and operational tools to help you succeed. The better you understand their system, the more confident you'll be in running your own branch.

Explore the franchise business in the Philippines that matches your lifestyle

With hundreds of franchise opportunities across industries like food, retail, education, and services, there’s a model that can work with your schedule, interests, and goals. For young professionals or new business owners, the ideal franchise is one that offers flexibility, manageable day-to-day tasks, and room for growth. Some setups allow you to monitor part-time or assign a trusted staff member, making it possible to balance your job or other commitments while still building a real business.

Understand all the costs

Aside from the upfront franchise fee, be prepared for recurring expenses like rent, utilities, salaries, and restocking inventory. Create a financial plan that covers your first 3 to 6 months, as it may take time before you see consistent profits. Don’t forget to ask for a sample income projection, as this will give you a clearer picture of your expected ROI and monthly expenses.

Be hands-on and don’t skip the legal side

As tempting as it is to delegate, being involved early on helps you understand what works and what doesn’t. It also builds your leadership and business instincts. Just as important: register your business, secure the proper permits, and study your franchise agreement carefully. Make sure you understand terms like renewal conditions, territory rights, and franchisor responsibilities before signing anything.

The franchise business in the Philippines continues to grow as more young professionals look for practical ways to build something of their own. With its built-in support and lower entry barriers, it’s a smart option for those starting with small capital. When approached with the right mindset and commitment, what begins as a side hustle could evolve into a sustainable source of income, and maybe even your next big venture.