Amid uncertainty, franchising pitched as stability play
With high fuel costs and businesses bracing for prolonged uncertainty, an industry group is pushing a strategy that runs counter to the broader cautious stance—keep investing and do so through franchising.
For the Philippine Franchise Association (PFA), such a model offers a more predictable path to survival than independent startups. This, at a time when margins are tightening and cost volatility is intensifying.
“Franchising has a 90-percent higher success rate than traditional business startups,” says Sherill Quintana. She is founder and president of health and beauty brand Oryspa as well as vice president at the PFA.
Instead of building a business from scratch, franchisees operate within established systems, defined supply chains, pricing structures and operational playbooks. These factors help diffuse risks, particularly during periods of economic stress.
PFA vice chair Ma. Alegria Limjoco says this resilience has been tested countless times in the past. Limjoco cites the 1997 Asian financial crisis, 2008 global financial crisis and, more recently, the COVID-19 pandemic.
Following the easing of pandemic restrictions, the industry expanded by 15 percent in 2023 before moderating to 10 percent to 12 percent in 2024.
In 2025, growth was placed at between 8 percent and 10 percent, estimated as a “sustainable” pace.
While franchising does not fully insulate businesses from global supply disruptions, Quintana says the model allows for quicker adjustments, particularly as franchisors expand local supplier networks to reduce import dependence.
At the same time, the composition of the sector is evolving.
Food still accounts for roughly half of franchising activity, but services are emerging as one of the fastest-growing segments.
Sam Christopher Lim, international relations director at PFA, said services now extend beyond traditional personal care into areas such as health-care, lending and construction-related businesses.
Broadening base
The base of operators is likewise broadening, with around 69 percent of PFA members now classified as micro, small and medium enterprise franchisors.
Despite a more cautious operating environment, the group sees the current cycle as one that calls for continued capital deployment rather than retrenchment.
“The only way for us to navigate any crisis is to really encourage people that the only way for us to contribute to the economy of the country is to still invest,” Quintana says.
Franchising remains a major economic driver, with an estimated industry value of P800 billion. This is equivalent to about 7.8 percent of gross domestic product.
This segment also accounts for around 2 million jobs generated across more than 120,000 enterprises.
Against this backdrop, the PFA is using Franchise Asia Philippines 2026 to reinforce the country’s position as a regional franchising hub.
Scheduled from April 21 to April 26, the event brings together an international conference, an expo and business seminars under the theme “Franchising Together: Asean to the World.” This is inspired by the Philippines’ hosting of the Association of Southeast Asian Nations summit.
This expo is expected to draw 50,000 to 70,000 visitors and features around 300 exhibitors representing more than 1,000 brands. Of these, about 81.9 percent are local and 18.1 percent are international.
At the April 23 conference, executives from major brands such as 7-Eleven, Bo’s Coffee, Max’s Group and Tapa King—along with global speakers including franchising expert Rod Bristol—will discuss topics including expansion strategies and operational resilience.
Running alongside the expo, business seminars from April 24 to April 26 will cover topics ranging from supply chain management and AI-driven site selection to risk mitigation and franchise investment strategies.
While the duration of the current crisis remains uncertain, PFA leaders are confident the sector can absorb the shock.
“Although this is a major hiccup, it’s a hiccup that we will be able to transcend together,” Quintana says.
