The country’s booming franchising sector announced Friday a conservative growth forecast of 10 percent to P34 billion in terms of revenues this year from an estimated P30.5 billion in 2023.
Philippine Franchise Association (PFA) president Chris Lim said while the group has yet to firm up its targets, a modest growth of 8 percent to 10 percent is achievable for the industry.
“We actually estimate franchise statistics since there is no regulatory body to oversee the sector. But we are pretty much confident that growth will remain strong as more Filipinos are now aware of franchising as a business concept,” Lim said in a briefing during the opening of the Franchise Asia Philippines Expo 2024.
PFA director for membership Sherill Quintana said the revenue projection this year is slower compared to the 12-percent to 15-percent forecast in 2023.
She said it is more prudent to expect slower growth despite the industry growing by leaps and bounds with almost 2,000 brands in the market.
“The entry of new foreign concepts and new brands as an offshoot of the 3-day Franchise Asia Philippines 2024, will contribute to the growth of the sector,” FAP 2024 overall chairman and PFA director Joey Garcia said.
More than 700 brands are participating in the ongoing FAP Export 2024, including 100 foreign brands.
The group is also positive that the number of franchise outlets would grow by 8 percent to 216,000 in 2024. There are 200,000 franchise stores in the country.
Quintana said foreign brands are aggressively seeking entry into the Philippine market due to its growth potential.
Some of the trending concepts at the 2024 Expo are services franchises like spa, wellness hubs and construction.
The PFA will stage the Franchise Asia Philippines Conference in September 2024.