New DTI Planned Franchisor Guidelines
The Department of trade and industry (DTI) has announced that they will be setting and implementing new guidelines that will regulate the franchise industry and protect the public from franchise scams that is becoming very common these days. The DTI has proposed to a cap on the number of years a company should be operating before that can offer themselves up for franchise. Wouldn’t you be more interested in a business that has already a proven track record?
But 2 big franchise organizations in the Philippines, namely Philippine Franchise Association (PFA) and the Association of Filipino Franchisers Inc (AFFI) have opposed such regulation in the industry which has baffled me but not surprising since they have vested interest in this.
The current franchise industry is pretty much self-regulated, which in my opinion has not worked out too well. It’s close to being the wild wild west. Many franchise companies, some are even MLM companies cleverly disguised as offering legitimate franchises are popping up at an alarming frequency often offering substandard franchises that’s ruining the industry as a whole. For more on the news, you can view it here.
Labels: my 2 cents