Friday, September 03, 2010

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.

4 comments:

Business Consultant Philippines said...

I think it's definitely a good idea to have some regulation of the franchise industry. Self regulation is a pretty good system but there are always those individuals that are able to find ways to scam and exploit helpless individuals. For assistance contact Triple i Consulting Inc.ro

Vic said...

In the first place, DTI should be doing that, because that is their job - to regulate trade in the Philippines. I think it's a good idea to require operating years for franchising companies to start offering franchise. DTI and the franchise organizations should agree on the number of years required.

venyafofoodcart said...

joj foodcart biz & franchise consultancy says that it is in favour of dti regulating the franchising industry in the philippines. it is now a major force in philippine economy and it is only proper that government does its part to prevent the exploitation of new entrepreneurs. call 0929 585 0755

venyafofoodcart said...

jojfoodcart biz says ok for dti to regulate frnchising in the country