The Philippine franchising industry is projecting lower revenue growth this year at 8–10 percent, with estimated revenues of around PhP800 billion. This tempered outlook is attributed to ongoing headwinds and economic uncertainties both locally and globally.
Christopher Lim, chairman of the Philippine Franchise Association (PFA), shared during a press conference at the opening of Franchise Asia Philippines and Expo on April 24, 2025, that this year’s projection is lower than the estimated 10–12 percent growth seen in 2024.
“We have to temper our projection this year because of numerous headwinds. For example, we’re uncertain about where inflation and interest rates are headed,” he said. The projected growth already includes revenues from newly opened brands.
With the 8–10 percent growth estimate, the industry is expected to reach approximately PhP800 billion in revenue this year, up from PhP530 billion in 2022. The sector currently provides an estimated 2 million jobs.
Despite the challenges, PFA Director Sherill Quintana said the industry aims to reach 200,000 franchise establishments within two to three years, up from 120,000 last year.
With support from the PFA, she added, Philippine franchising is gaining global credibility, bolstered by its strong presence in the World Franchise Council and the International Franchise Association.
Foreign brands and delegates are also increasing their presence in the country. At the current PFA Expo, Quintana noted that foreign delegations and brands now represent triple the number seen ten years ago.
Still, she emphasized the importance of the domestic market.
“We should manufacture for the Philippine market. We have to remember that the Philippines is a good market,” she said.
Quintana also encouraged Filipino brands to focus on expanding to ASEAN neighbors before exploring other international markets. “ASEAN is also a good market,” she added.
She pointed out that exporting to ASEAN is more cost-efficient and accessible compared to the U.S., and that Filipino exporters should have made this move a decade ago.
“Now, with increased collaboration among our neighbors, franchising in the Philippines is set to thrive—especially with the upcoming ASEAN Summit that we are hosting next year,” she said.
Filipino brands are now expanding into markets such as Australia, Dubai, and other non-U.S. destinations.
Quintana cited data showing that franchising contributes 7.2 percent to the Philippine economy, equivalent to PhP1.4 trillion, and 2.7 percent to the Gross National Income (GNI), or PhP951 billion.
With its multiplier effect and a 90 percent success rate for start-ups, franchising has led to the creation of over 120,000 enterprises, generating more than one million jobs both locally and abroad.
Franchising has also played a key role in the development of MSMEs, which form the backbone of any economy. Quintana noted that close to 7 percent of PFA members are MSMEs.
“But more importantly, the majority of our members’ franchisees are micro or small enterprises. These are the businesses that are spreading throughout the Philippines, creating jobs and opportunities for our fellow Filipinos,” she said.
