MANILA, Philippines — While many businesses adopt a defensive posture amid economic uncertainty, the Philippine Franchise Association (PFA) is advocating for a counterintuitive approach: continued investment through franchising.
Industry leaders argue that franchising offers a more stable alternative to independent startups, particularly as companies grapple with rising fuel costs and unpredictable market conditions.
“Franchising has a 90-percent higher success rate than traditional business startups,” says Sherill Quintana, founder of Oryspa and PFA vice president. “The only way for us to navigate any crisis is to really encourage people that the only way for us to contribute to the economy of the country is to still invest.”
Franchisees benefit from established operational systems, defined supply chains, and proven business models that help mitigate risks during economic downturns. PFA vice chair Ma. Alegria Limjoco points to the industry's resilience during past crises, including the 1997 Asian financial crisis, the 2008 global recession, and the COVID-19 pandemic.
Following pandemic restrictions easing, the sector experienced 15 percent growth in 2023, moderating to 10-12 percent in 2024. Growth stabilized at 8-10 percent in 2025—a pace industry leaders describe as sustainable.
While franchising doesn't eliminate exposure to global supply chain disruptions, Quintana notes the model allows for quicker adjustments as franchisors increasingly source from local suppliers to reduce import dependence.
The industry's composition is also evolving. Food still represents approximately half of franchising activity, but services have emerged as the fastest-growing segment.
“Services now extend beyond traditional personal care into areas such as health-care, lending and construction-related businesses,” says Sam Christopher Lim, PFA international relations director.
The franchise operator base is broadening too, with micro, small and medium enterprises now comprising about 69 percent of PFA members.
Despite the cautious economic climate, the association maintains that strategic investment through franchising represents a viable path forward for entrepreneurs seeking stability in uncertain times.