Meet Money Master Bing Limjoco
If there’s one credible authority on franchising, Bing Sibal-Limjoco, CEO of Francorp Philippines, is the expert who can teach you how to grow your business through franchising. Read our interview with her below and catch her at the Money Summit & Wealth Expo.
1. When and how did you get started in franchising? And what attracted you to this field?
In 1995, we set up the Philippine Franchise Association when there were only 50 homegrown franchise concepts in operation. However, we witness how fast the industry grew. It never slowed down despite economic crisis. What’s attractive with franchising is that, it thrives amidst challenging times. Franchising grows even faster during times of recession, creating thousands of entrepreneurs and millions of jobs. Through this, we can create a bigger middle class and uplift lives of our Filipino people.
2. What would you consider your first biggest franchise clients?
Jollibee, Bench, Goldilocks, and Max’s Restaurant were few of our earliest clients. Today, they are among the biggest names which many would like to emulate.
3. Who do you consider your mentors and what’s the most important thing you learned from them?
My mentor is Mr. Don Boroian, the chairman of Francorp USA. I learned the every nitty-gritty of the franchising industry from him. And also, Mr. Samie Lim, the “Father of Franchising in the Philippines.”
4. Which books, websites, and other resources do you recommend for beginning franchisers and franchisees?
Books: (1) Guide to franchising in the Philippines, PFA, (2) The Franchise Advantage by Don Boroian, and (3) Franchising your Business by Don Boroian and Patrick Callaway
Websites: (1) www.pfa.org.ph, (2) www.francorp.com.ph, (3) www.francorp.com
5. How much can one expect to earn in franchising?
This varies depending on the format of the outlet offered for franchise, its products, and its location. As well as the effort put in by the franchisor and franchisee into the growing the business. Thus, if the franchisee will follow the system and advice of the franchisor, she will recover her investment. The average return on investment is six months to one year for kiosk-type businesses, one and a half years for small businesses, and five years for medium to large scale businesses.
6. What are three different ways one can earn money in franchising?
As a franchisor, you earn money from the franchises you sell. The sources of revenues would include the initial franchise fee, royalty, sale of products and supplies, services, advertising fee, and bulk pricing from the supply chain.
7. Per your experience, what gives the highest chances of succeeding in franchising?
It’s a combination of factors. The franchisor must have a firm financial strategic plan, a sound operations system and legal scheme, complemented by marketing and sales strategies and most importantly, an effective implementation of these aspects.
But it all boils down to the franchisees’ effort, dedication, and commitment to the (franchised) business. Even with a dependable system, if franchisees won’t follow it or listen to their franchisor’s advice, a franchise may possibly fail. There are franchisees who are hands-off or passive owners. It’s very important that they are directly in touch with the business. And with our existing technology, one does not need to be physically present to monitor their business. It is definitely helpful for those entrepreneurs who can’t physically attend but needs to keep track of its everyday business dealings.
8. What are the risks involved in franchising? And what can one do to mitigate those risks?
One advantage of franchising is risk reduction. Franchisees have businesses of their own but not necessarily on their own since the franchisor will be there to support and share their experience and expertise with them. The success rate of franchising a business is 90% because the franchisor has a proven track record so there won’t be hit or miss as compared to starting up your own new business which has a success rate of 20-25% only. However, like any other business, risks are inevitable. Franchising has systematized the business well enough to eliminate trial and error and the risk resulting from guesswork. Common risks involve choosing the right franchisee and location and taking a high-risk loan for capitalization. That is why Francorp puts emphasis on following systems and processes set by professionally-made franchises.
9. For the beginning franchisor and franchisee, what advice can you give to get started?
If you are a franchisor looking for a franchisee, look for a partner who will believe in and follow your proven system. Like marriage, the franchise relationship is long-term so the franchisor should commit in building a harmonious relationship with them which can be mutually rewarding. Give them the support due them and see them as partners for growth.
For a franchisee, find out what their business’ passion is and then proceed with due diligence. Research if the franchisor is a legitimate member of the Philippine Franchise Association, then find out information on the franchise offering. It will help to ask existing franchisees if they got the support they were promised. If you’re already a franchisee, follow the system; value the franchisor relationship, their support and advice.
ABOUT BING LIMJOCO
In 1995, there were only about 50 homegrown franchise operations in the Philippines when Bing Sibal-Limjoco started with a few franchise pioneers the Philippine Franchise Association. Today Filipinos who want to get into the business through the franchising route have numerous options. This is thanks to the untiring efforts of industry veterans like Bing, the CEO of Francorp Philippines, the franchise consultancy instrumental in the franchising of such legendary Filipino companies Jollibee, Bench, Goldilocks, and Max’s Restaurants.
ACTION STEPS
Step 1. Visit the website of Francorp Philippines.
Step 2: Watch this video from Francorp USA on how to franchise your business.
Step 3. Catch Bing at the Money Summit & Wealth Expo as she talks about how to “Make money in franchising” this July 2-3 at the Carlos P. Romulo Auditorium, RCBC Plaza, Makati City.