How to Franchise a Food Cart in the Philippines

by Gily Tenorio on October 15, 2011

in Business


In my previous article about franchising a business in the Philippines, I outlined some topics about the advantages and disadvantages of owning a business through franchising. There are lots of available choices when you want to start a business, you could begin with your own knowledge and hard-work or you could try a established and existing business that offers franchising.

Just read the post I wrote to learn more about franchising and what you can get from it. Some people want that kind of business model because it is easy to set up and it is already a proven business with a strong brand. As a customer, we also want a product that is already in the market for quite sometime because we know it is tried and tested by many people.

How to Franchise a Food Cart in the Philippines

If you are planning to franchise a food cart business in the Philippines, you should be informed of the different aspects of doing this kind of business. Below you can see some of the tips to consider before franchising a food cart.

1. It should be a legitimate and established business.

Because of the many sprouting food carts these days, lots of people are thinking also to jump in the boat. However, most of these food cart businesses are not operating in legal ways. Some of them are scams in a way they claim that they are in the business for a long time but in truth they exist just only for a few weeks or months.

Make sure also to verify and study whether the food cart you are planning to get is already an established business. How do you know that? It is very easy, search it in the Internet. If there are many people saying good things about it, it is already a proven business.

2. A leader in its industry.

A good food cart business is a leader in its industry. There are many competitions out there especially in food sector. Take for example a food cart selling “siomai”. When you go to supermarkets and malls, you will notice that there are different kinds of brand but you will know who is the best and the winner among them through customers’ patronage of the product.

It is a leader in its industry not only because of the delicious product it offers but also because of the system it built and the customer services it give. It is one important thing to look for in a food cart business.

Another sign of a leading food cart business is it has own website where people can go to learn more about their product. A website is a way of doing marketing to the customers and it is also one form of advertising through the people about the business.

3. Franchise Fee, Royalty Fee and Other Charges

It would be better to understand the fees and charges before you attend seminars or orientation for the cart you like. Most of the information about the food carts can be seen in the Internet through some websites and blogs or directly through their official site.

Do not be lured by a very low franchise fee. There’s a saying, “You get what you paid for” and in most cases it is always true. On the other hand, a franchise fee should not be so much expensive. Always research the fair and normal fee by comparing different franchises.

In addition, you should not franchise a food cart with royalty fee and other miscellaneous charges. Make sure that when you pay the franchisor, you will only paying the franchise fee overall.

4. Franchisor Support and Service

Before you choose a food cart business and signing a contract, you should know whether the franchisor is giving a free support and other services during the course of your business. It would be better to have an on-site help when you start the operation and continuous support.

The franchisor should be also available for communication through telephone or email so you can reach them anytime there’s a problem or difficulty with your franchise. They should be giving a free seminar and orientation before you begin the operation of your business.

Final Thoughts

Franchising a food cart in the Philippines could be one of the easiest way to enter in the world of entrepreneurship and investing in the Philippines but it requires the same skills and character as a regular business. You should always strive to learn and understand the business system and the needs of your customers, make innovations and don’t settle for average service.


Photo Credit: digitalart


Previous post:

Next post: