The Philippine Franchise Association (PFA) said Thursday the local franchise industry is expected to grow by 8 percent to 10 percent this year despite a cautious global outlook.
“Our projections this year are a bit more muted. But still quite aggressive, it’s at about 8 to 10 percent. We do know there’s a lot of headwinds around the world. And we don’t know where inflation, or more importantly, interest rates, are going,” PFA chairman Samie Lim said in a briefing during the opening of the two-day International Franchise Conference and Expo Thursday at the SMX Convention Center in Pasay City.
Lim said that while food remains the biggest driver of franchise revenues, service-oriented franchises are emerging as strong growth contributors.
“As the market matures, service franchising becomes an equally important sector. But of course, food will still drive most of it,” he said.
He also highlighted the rising interest in franchising, particularly from individuals in the provinces seeking to return home and start their own businesses.
PFA director Sherill Quintana cited franchising’s vital role in the economy, contributing 7.2 percent to the gross domestic product, equivalent to P1.4 trillion and 2.7 percent to gross national income or P951 billion.
With a 90-percent success rate for start-ups, the industry has helped establish over 120,000 enterprises and created more than one million jobs, both locally and internationally.
The PFA is targeting 200,000 franchise outlets and establishments over the next three years, up from 120,000 in 2024.
The industry also aims to generate two million jobs within the year, covering both direct and indirect employment.
