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- Lacking Legal Documents
- No Trademark
- Less Than A Year of Company Operation
- Lack of Available Retrievable Public Documents
- No Established Physical Or Franchise Outlets
- The Company Has Inadequate Manpower
- No Reachable Corporate Office
- Has Unclear Franchise Agreement
- The Company Has No List of Accredited Suppliers
- Franchise Company Is Not A Member of Any Franchise Organizations
The Philippine government has been strict in implementing rules and regulations related to the legality of businesses operating in the country. There are legal requirements needed to start the businesswhich includes the following: 1. Department of Trade and Industry (DTI) registration for Sole Proprietor 2. Securities and Exchange Commission (SEC) ...
Companies that care for their brands will always make ways to secure their trademarks, logos, and slogans. This can be done by registering all of that with the Intellectual Property Office of the Philippines. Franchisees must always ask this to a franchisor during the Franchise Discovery Day. It helps to know this ahead of time since having a secur...
Most businesses that venture into franchising are already established and have effective business models tested over the years. This means the company has enough knowledge of its market and the target consumers, and therefore, can compete against its competitors with an edge over the others. Make sure that the company operates for at least more tha...
In some instances, you can also verify a business’s legitimacy by checking its available public documents like the SEC registration, articles of incorporation, and some audited financial statements. If this seems impossible, then be careful again because you might fall prey to those scammers.
Another thing to consider is the number of outlets the business has, at least two more operating outlets. Although in franchising there is such thing as being the first franchisee, it is still a gamble to do. It is safe to franchise from a business with at least two or more franchise outlets already. Again, if this is something that a franchise doe...
As an established business, the franchise business is expected to be run by individuals assigned to specific departments of the company. These people provide a workforce for the business to run smoothly. It does not mean that the company should have many employees. What matters is for the company to have the right person under the correct departmen...
This is also a very obvious red flag. Every business offering a franchise opportunity should have a corporate office. Moreover, it should be an office with a registered BIR Registration and other government permits. In instances of food and beverage franchises, it is recommended that the business has a commissary center. Nevertheless, beware of thi...
If the prospect franchise business presents a Franchise Agreement (FA), take the time to review first the details, clauses, and provisions of the said contract. It is always a good thing to consider that the franchisor has a ready contract for reviewing, so you should take some time checking it before signing any papers. Remember that the agreement...
Having trusted suppliers in the field is always important. Franchise companies must have their accredited list of suppliers of raw materials that they can share with their franchisees. Otherwise, it may affect the overall supply chain of the business and disrupt its operations. However, if this is something that the franchisor is unsure as of the m...
This is also an excellent indicator to know if a franchise is legitimate or not. In the Philippines, there are three respected franchise organizations, namely the Philippine Franchise Association (PFA), Association of Filipino Franchisers, Inc. (AFFI), and Filipino International Franchise Association(FIFA). Any legitimate franchise business should ...
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When it’s too good to be true, it’s probably a scam. Common red flags in franchise scams include franchisors being very cheap, guaranteeing success, and refusing to show legal documents. Make sure to do your research before paying for any franchise “opportunity”. Be careful about investing in a franchise that is based on fads.
Apr 27, 2023 · For this video, I just wanted to talk about how I started my first legit business here... I hope you enjoyed my video and you were able to learn a thing or two. For this video, I just wanted to ...
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One indication of a franchise scam is a business concept that has not been tested in the market or a franchise with no company-owned branches. For a franchiser to be considered legitimate, he should have been franchise at least a year, and is overseeing at least a couple of successful company-owned outlets.
