Casting a Wider Net - Franchising

"Boss Leo," Ana said, handing him a stack of emails, "we're getting inquiries from Laguna, Batangas, even Pangasinan! People want to sell your dried fish."

Leo's eyes lit up. "That's fantastic! It seems we're ready to expand beyond Metro Manila."

He'd been thinking about franchising for some time, but now, the demand was undeniable. "We need to create a system," he told Ana, "a way to replicate our success in other provinces."

He started researching franchising, consulting with legal experts and franchise consultants. "Franchising is like building a network of partners," one consultant explained, "but it requires a solid foundation."

Leo and his team began developing a franchise package. They created detailed training manuals, covering everything from product handling and customer service to inventory management and marketing. They also designed a standardized store layout, ensuring a consistent brand experience across all locations.

"We need to provide ongoing support," Leo said, "not just the initial training. We need to be there for our franchisees, helping them succeed."

Franchise Development Expenses:

Franchise Consultant Fees: 80,000 PHP (one-time) Legal Fees (franchise agreement, etc.): 50,000 PHP (one-time) Training Materials and Manuals: 20,000 PHP (one-time) Initial Franchisee Support (marketing, setup): 10,000 PHP/franchisee

He also started building a network of suppliers and distributors, ensuring a reliable supply chain for his franchisees. He negotiated favorable terms with his existing suppliers and explored partnerships with logistics companies to streamline distribution.

"Quality control is crucial," he told his operations team. "We need to ensure that every franchisee maintains our standards."

They developed a system for monitoring quality, conducting regular inspections, and providing ongoing training to franchisees.

"We need a clear franchise agreement," his lawyer advised, "spelling out the rights and responsibilities of both parties."

They created a comprehensive agreement, covering everything from franchise fees and royalties to marketing guidelines and dispute resolution.

Franchise Fees and Royalties:

Initial Franchise Fee: 200,000 PHP/franchisee Royalty Fee: 5% of gross sales

"We've got our first franchisee!" Ana announced, showing Leo an application from a businessman in Laguna. "He's enthusiastic and has a good location."

Leo and his team provided the new franchisee with comprehensive training, marketing materials, and ongoing support. They also helped him set up his store and launch his business.

"It's like having a family," Leo said to Maria, "a network of people who share our passion."

Franchise Income Example (First Franchisee):

Initial Franchise Fee: 200,000 PHP Estimated Weekly Sales (Laguna location): 80,000 PHP Weekly Royalty Fee (5%): 4,000 PHP

Continued Sales and Updated Capital:

Leo's established stores continued to perform well, and the added franchise income provided a boost.

Weekly Sales (Existing Locations):

Market/Grocery Sales (Manila): 80,000 PHP Online Sales (Manila): 70,000 PHP Market/Grocery Sales (Quezon City): 65,000 PHP Makati/BGC Sales: 110,000 PHP Total Weekly Sales (Existing): 325,000 PHP

Weekly Expenses (Existing):

Accommodation (Manila, 7 nights): 2,100 PHP Food (Manila, 7 days): 1,750 PHP Transportation (Manila, 7 days): 1,050 PHP Phone/Internet (7 days): 350 PHP Employee Wages (Ana): 3,000 PHP Packaging Materials: 5,500 PHP Delivery Costs: 8,500 PHP Shopee/Lazada Fees: 6,500 PHP Social Media Marketing: 3,000 PHP Storage Space Rental (Quezon City): 3,500 PHP Transportation (Quezon City):: 800 PHP Online Advertising/SEO: 12,000 PHP Content Creation: 3,000 PHP Partnership Fees: 5,000 PHP New Product Development: 3,000 PHP Loyalty Program/Promotions: 3,500 PHP Market Research Exploration: 2,000 PHP Dating/Gifts: 1,800 PHP Investment Platform Fees: 500 PHP Premium Product Development: 20,000 PHP Rent (BGC): 150,000 PHP Social Media tools: 1,000 PHP Email Marketing: 500 PHP Total Weekly Expenses (Existing): 244,950 PHP

Weekly Profit (Existing):

Weekly Profit (Existing): 325,000 PHP - 244,950 PHP = 80,050 PHP

Updated Capital:

Previous Capital: 500,600 PHP Franchise Consultant Fees: -80,000 PHP Legal Fees: -50,000 PHP Training Materials: -20,000 PHP Initial Franchise Fee: 200,000 PHP Initial Franchisee Support: -10,000 PHP Weekly Profit (Existing): 80,050 PHP Weekly Royalty Fee: 4,000 PHP Remaining Capital: 500,600 PHP - 80,000 PHP - 50,000 PHP - 20,000 PHP + 200,000 PHP - 10,000 PHP + 80,050 PHP + 4,000 PHP = 624,650 PHP

Leo was building a franchise empire, casting a wider net and sharing his success with others. He was learning to manage a network of partners, ensuring quality and consistency across multiple locations. He was transforming his dried fish business into a national brand, one franchise at a time.