MANG INASAL | Philippine Franchise

To franchise a Mang Inasal restaurant, potential franchisees need to meet several requirements, including having a strong business background, financial stability, commitment to the brand, and a suitable location. The franchise term is 10 years, renewable based on performance, and involves fees like a system enrollment fee and ongoing royalty and advertising fees. The estimated capital investment varies depending on the store type, ranging from ₱15 to ₱30 million.

Key Requirements:

Business Experience: Demonstrates a track record of success in the business world, including adherence to regulations and industry standards.  Financial Standing: The candidate needs to have the financial resources to build, maintain, and operate the franchise successfully.  Commitment to Partnership: A strong commitment to partnering with Mang Inasal and contributing to the brand's growth.  Location: The franchise location should be in a high-traffic area, such as commercial or residential zones, to generate maximum sales. The store floor area should be 220-280 square meters, with a minimum 13-meter frontage (exclusive of parking).  Corporate Values and Strategic Fit: The candidate should align with Mang Inasal's values and way of doing business.  Shared Belief in the Brand: Demonstrates a strong belief in the Mang Inasal brand and its success.  Capability to Fund and Operate: Possesses the financial resources and management skills to run the business effectively.  Ability to Acquire Sites: Has the capacity to find and secure suitable locations for the franchise.

Investment Details:

Franchise Term: 10 years, renewable. Royalty Fee: 5% of net sales. Advertising Fee: 3% of net sales. System Enrollment Fee: ₱1,200,000 (VAT exclusive). Estimated Capital Investment: ₱15 - 30 million, depending on store type. Store Floor Area: 220 - 280 sqm (exclusive of parking). Store Frontage: At least 13 meters (varies by store type).

A franchise fee is a one-time upfront payment a franchisee makes to a franchisor for the right to operate a business under the franchisor's brand and system. This fee grants the franchisee the license to use the franchisor's trademarks, products, services, and business model. It's distinct from ongoing royalty fees, which are typically a percentage of the franchisee's sales.

Here's a more detailed breakdown:

What it is:

Initial Payment: The franchise fee is the initial investment a franchisee makes to join the franchise system.  License to Operate: It grants the franchisee the right to use the franchisor's brand, trademarks, business model, and operational systems.  Support and Training: The franchise fee often includes initial support, training, and resources from the franchisor to help the franchisee get started.

What it covers:

Startup Costs: It helps the franchisor cover some of the initial costs associated with onboarding a new franchisee, such as marketing, training materials, and initial advertising. Ongoing Support: The fee can also contribute to ongoing support services, such as visits to approve and monitor the franchisee's site development, and opening support. Franchisor's Investment: It helps the franchisor recoup their investment in developing and promoting the franchise system.

Key Differences:

Franchise Fee: A one-time payment upon joining the franchise.  Royalty Fee: An ongoing percentage of the franchisee's revenue, paid periodically.

Factors Influencing Franchise Fees:

Brand Recognition: Franchises with well-known and established brands may charge higher fees.  Support and Training Provided: The level of support and training offered by the franchisor can impact the fee.  Industry and Type of Business: The nature of the business and the industry it operates in can influence the fee.

In essence, the franchise fee is the entry fee for a franchisee to become part of the franchisor's network and utilize their brand, business model, and resources to operate their own franchise unit..