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Franchisors Franchisee training and opening assistance By: Rudolf Kotik

Effective initial training is critical to achieve positive Franchisee attitudes regarding system standards, the operation, the Franchisor and the value of the franchise and depending on the business can take from 5 days up to 2 months. Inadequate training is a common cause of poor Franchisee performance. Good Franchisors provide ongoing training on a regular basis . • The Franchisor is able to explain the concept, philosophy and operation of the Franchise to the Franchisee • The Franchisee gets hands-on experience in operation and management • Indicates the capability or lack thereof of the Franchisee to successfully operate the business of Franchisor • Motivates Franchisees to perform at their best level once they understand all aspects of the franchise business • Increases satisfaction of the Franchisee as well as the employee working for the franchised facility • Reduces complaints from consumers and employees • Helps maintain quality of products and services based on the standards set by the Franchisor

Publisher: Marketing Editor: Marketing Officer: Publication Designer: Circulation Officer: Legal Adviser:

Contributors:

FIFA Filipino International Franchise Association Margarita Nacua Mick Ezekiel Dizon Johyver “Hyver” Ampang and Ayron Paul Sayritan Roselyn Dava De Vega Law Firm

Rudolf Kotik Prof. Enrique Soriano Atty. Nikki De Vega Wilson Ng Paul Pereyra

Atty. Sara Saguitan Bunny Pages Harry Tambuatco Dioscoro Odsinada Jericho Arvin Borgoños

RK FRANCHISE CONSULTANCY INC. G/F Minnesota Mansion, 267 Ermin Garcia St., Cubao Quezon City Tel.: (02) 912.2946 / 912.2973 Fax: (02) 911.1966 | Cebu Branch Fax: (032) 253.5010

All rights reserved. Copyright 2015

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• Promotes adherence to sanitation standards in all functional areas of the business • Reduces breakage and spoilage within the Franchised facility • Reduces number of accidents • Creates an identity for the Franchisee within the franchised system and fosters development of Franchisee loyalty • Improves operational skills of the Franchisee and employees • Establishes the Franchisor and the Franchisee as a team rather than two separate partners Franchisor's management and staff assist new Franchisee upon grand opening of the franchised outlet to operate it smoothly from day one onwards. Franchisors representative will remain in the Franchised Facility for a period of time as determined by Franchisor to assist Franchisee in the initial operation phase. Rudolf Kotik is the Founder of RK Franchise Consultancy, your Expert in the Franchise Industry, and can be reached through rk@rkfranchise.com or through (02) 912.2946 and 912.2973


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UNDERSTANDING EMPLOYEE LEAVES IN THE PHILIPPINES By Atty. Nikki de Vega

(Part 2)

Paternity Leave Paternity Leave refers to the seven (7) days with pay leave granted to a married male employee for the purpose of allowing the husband to help and assist his wife during childbirth, recovery and nurture of the infant. A married male employee may be able to avail of this leave for the first four (4) deliveries or miscarriage of his legitimate spouse with whom he is cohabiting. It is incumbent upon the male employee to notify his employer of the pregnancy of his legitimate spouse and the expected date of such delivery.

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4. Physical and/or mental incapacity of spouse as certified by a public medical practitioner; 5. Legal separation or de facto separation from spouse for at least one (1) year: Provided that he is entrusted with the custody of the children; 6. Declaration of nullity or annulment of marriage as decreed by a court or by a church: Provided, that he is entrusted with the custody of the children; 7. Abandonment of spouse for at least one (1) year; 8. Unmarried father/mother who has preferred to keep and rear his child, instead of having others care for them or give them up to a welfare institution; 9. Any other person who solely provides parental care and support to a child: Provided, that he is duly licensed as a foster parent by the DSWD or duly appointed legal guardian by the court; and 10. Any family member who assumes the responsibility of head of family as a result of the death, abandonment, disappearance, or prolonged absence of the parents or solo parent: Provided, that such abandonment, disappearance, or prolonged absence lasts for at least one (1) year. The parental leave, in addition to leave privileges under existing laws, shall be for seven (7) work days every year, with full pay.

Parental Leave for Solo Parents Parental leave for solo parents is provided for under Republic Act No. 8972 and granted to any solo parent or individual who is left alone with the responsibility of parenthood due to: 1. Giving birth as a result of rape or, as used by the law, other crimes against chastity; 2. Death of spouse; 3. Spouse is detained or is serving sentence for a criminal conviction for at least one (1) year;

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In order to be entitled to the leave, a solo parent employee should have complied with the following: 1. Has rendered at least one (1) year of service, whether continuous or broken; 2. Has notified his employer that he will avail himself of it, within a reasonable period of time; and 3. Has presented to his employer a Solo Parent Identification Card, which may be obtained from the DSWD office of the city or municipality where he resides. In the event that the parental leave is not availed of, it CANNOT be convertible to cash, unless specifically agreed on previously.


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Located in Butuan City Uncle Sam`s Burger and steak house offers unique culinary journey that will satisfy the cravings of every diner. It’s simple but well executed concept brings together great tasting food at value for money prices. Uncle Sam`s feature wooden furniture and large windows in a serene ambiance away from the city pollution and traffic. It is also feature complete sets of musical instruments for the acoustic bands that perform every night for a total quality dining experience. Their menu variation have already gained customer loyalty. Uncle Sam`s burger and steak menu include the all-time favorite Crispy Tadyang. The well-loved breakfast toppings, fish, beef and shrimps were cooked in rich sauces and they also serve fresh vegetables for health conscious diners. Burger lovers should not miss taste Uncle Sam`s best hamburger which delicately made of 100% pure beef. It is also offers delicious and healthy fruit shakes that surely quench the thirst of the diners. You couldn’t ask for more at Uncle Sam’s Burger because of scrumptious foods, location, and friendly staff . Uncle Sam`s mission is to provide you the best quality dining experience. Uncle Sam`s provide the freshest ingredients, prepared to order in our kitchens and

served by our alternative knowledgeable staff. “It’s about quality “means that we make this personal commitment to each and of you, in your every visit. We proudly promise, to offer you a dining experience for all occasions because it is our goal to make you, our guest for life. We passionately deliver consistent unique experience wrapped in this festive sight, sounds, energy, fun and flavors which is so rich and colorful. Uncle Sam’s offers the Burger business as franchise in Kiosk, stores, and free standing buildings.

All rights reserved. Copyright 2015

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BURGER KIOSK


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Compensating Family Members Working in The Business

tant thing to remember is that sibling rivalry is a normal aspect of childhood and is simply about competition for parental attention and approval. But when sibling rivalry persists into adulthood, the conflict and self-doubts can be devastating.

“Fair is Equal, Equal is not Necessarily Fair”

Pre pa ring a Fa ir Com pe nsat ion Pla n

By Prof. Enrique Soriano

( PART 1 )

Compensating family members, particularly your own children, is a sticky business. Not all people are really created equal even though they come from the same bloodline. It is also The past two months, I have been inundated with emails from readers requesting (some quite difficult to assess and compare the talents of siblings who are also employees. As a actually “pleading”) for an article on the subject related to compensation. I deliberately result of the stress that this causes, many family business owners ignore the problem. ignored these requests as I have my own topic calendar until I figured in three (out of 7) family interventions this month and took me aback as all issues zeroed in on compensation! Thus the issue of compensation becomes a breeding ground for dissension in the family. So on my flight back to Manila, I decided to informally polled the email requests and expectedly 70% of the emails came from the Gen 2 and Gen 3 family members. This made me decide to write this article pronto. Thank you my dear readers for the “push”. Ge n 2 a nd Ge n 3 Conc e r ns We typically refer to these two generations as the sibling and cousin generation phase. This is a phase in the development cycle of a family business where family members have extended members in spouses, in laws and cousins, nieces and nephews. I consider this phase a very complex one and often referred to as the multi generational stage and when not guided appropriately can result to unnecessary conflict. I s M one y t he Root ? They say, “money is the root of all problems”, but this can be prevented if individuals are clear with what is fair and just. This is true in family businesses. Families involved in business tend to avoid talking about money matters. It is a very sensitive topic and creates so much discomfort to all parties. However, “sweeping this issue under the rug” only adds up to the confusion and dissatisfaction.

The topic of compensation plans in the family business has found its way into many books, articles and speeches on the subject. For the purpose of this principle I will just note that any compensation plan needs to be well communicated and, of course, as such should be written and distributed to those covered by the plan. It should contain enterprise goals and goals for individuals, particularly for the possible successors. There are a number of family businesses that have compensation systems which simply evolved over time or were developed or imposed by previous generations of family members in control. Such systems may be the current cause of irritation, anger or even open hostility. It is very difficult for the family members embroiled in a sticky situation to, by themselves, develop a solution. In most situations it is better to select a competent professional for proper advice. Although it is not easy to put aside the anxiety caused by developing a fair compensation plan for your family members, especially children, it is absolutely necessary if business is to thrive. ********** (Prof. Soriano is an ASEAN Family Business Advisor and Chair of the Marketing Cluster of the ATENEO Graduate School of Business. He is a National Agora Awardee and book author of Kite Runner, a book on Family Business Governance and Succession.

I often receive requests for guidance involving sibling and cousin rivalry conflicts. An impor-

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Aside from the wide variety of products and services exhibiting on the show are the top franchisors in the industry who can give free advice and thorough understanding on how franchising works. For aspiring entrepreneurs and for those who are considering a change in career direction- a visit from this franchise exhibit might be the next step of your superb transition.

By: Jericho Arvin Borgoños Whether you are looking to penetrate new markets, expand your global footprint or discover new business horizons, the Franchise Expo is the right venue for you. This year marks the 9th year edition of the annual event hosted by Filipino International Franchise Association. From visibility to credibility, Mindanao franchise expo has hundreds of benefits for your business.

Every year, this expo showcases innovative and emerging concepts that offer significant potential for attracting fastgrowing markets worldwide. Ranging from different business sectors such a Food and Restaurants, Health & Beauty, Convenience stores, Cafes, Pet Care, Printing, Laboratories, Water stations, Gasoline stations, Logistics, Hotels and support industries to Franchising and business in general.

When it comes to taking an Italian gastronomic food trip, nothing beats Pizzeria Michelangelo to satisfy your fix authentic pizza and pasta and all that is great about Italian cuisine, from the herbs and sauces to the spices and dough’s. Rustic, eclectic and even homey, Pizzeria Michelangelo reflects the real Italian country fel that comes from the traditional art of old world Italian cooking, made to perfection with passion as the Italian art painted on its walls. Yet its amenities are at par with the modern restaurant complete with wifi, clean and convenient interiors and facilities, and best of all, that Italian brand of warm and friendly customer service. Finally a place that feels and taste like Italy. Created by the business genius Michelle Lhuillier and Massimo La Magna, the Pizzeria Michelangelo started in Cebu in 2009 as a simple Italian joint offering Italian cuisine, by Chef Massimo when tourism and business boomed in Cebu, Pizzeria Michelangelo caught up with the local and foreign dining crowd. This inspired some fresher renovations in the interiors, marketing and its menu to keep up with the changing market that has become younger, upscale, adventurous, selective and empowered. Since then bloggers and visitors who come to Cebu kept giving Pizzeria great reviews after another, asking it one of the "must-go" places in Cebu's diningscape. Global POS Solution, Inc. is a quality-focused Retail and Hospitality business solution distributor. Our Primary objective is to provide the best, quality and a value for money Point of Sales and Auto-ID equipment’s nationwide. With our expert dealers and partners in key region of the country we believe that we will be able to provide needed solutions and after sales service that our customers may need. Their solutions; • POS Terminals • POS Peripherals • Barcode Printer • Portable Data Terminal • GP Touch Screen Terminal • POS Terminals • GP Intergraded Keyboard Based Terminal As a direct importer of our product, we assured our customers of quality terminals that would elicit optimum performance from our mentioned revolutionary POS and Auto ID systems solutions. And to further strengthen our commitment in providing you with only the best products and services, we have conducted intensive product study of our POS terminals.

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During times when the cost of living rapidly increases, people are trying to find ways to look for money and sometimes they are left with no choice but to pawn their valuables. As customers, you would want your things to be well-taken care of since, you used your hard-earned money to buy it. Pawning your gadgets at S Place Pawnshop will give you peace of mind because aside from being able to borrow money at a reasonable rate, you know that your items are well-kept. What sets S Place Pawnshop apart from others is that the customers know that the valuation of the collateral will be extremely fair as we base it on the current market value of the item thus allowing one to avail of the maximum possible loan. It is our honesty that brings our clientele back to S Place Pawnshop time after time, knowing that their valuables are in safe custody and are rightly protected.


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Volume 5.5 SEPTEMBER - OCTOBER Stemming out from the idea that quality hand and foot care need not be expensive, the first branch was born on August 29, 2009 at #111 rd. 8 Pag-asa Quezon City, offering basic hand and foot services.

In less than a year, NAILS.Glow has branched out in Tandang Sora, Quezon City, this time offering a wider array of services which includes body massage and treatments, facial care and waxing services. Where one will definitely enjoy a unique kind of service, NAILS.Glow offers signatures treatments fit for all customer types and delivered only by talented, trained, licensed and accredited professionals. One would not notice the difference between NAILS.Glow and high-end nail and body spas. With both offering high-end services, relaxing environment and a very clean and cozy atmosphere…well, except for the price. Targeting the B and C Market, NAILS.Glow seeks to provide only the best in all its services, housed in a modern zen haven, promising a very relaxing and satisfying stay, all at very affordable and “pang-masa” rates!

Botoy’s the leader in the Char-Grilled (Litson Manok, BBQ, & Liempo) business in Cagayan de Oro City is offering its profitable business and opens the possibility for dynamic and open-minded entrepreneurs with a strong desire for success to invest in its Franchise System as its business partners through Franchising throughout the country. Franchises systems for Single Store – P200, 000, Multi-Store – 250,000 and Complete Single Store – P500, 000 just add 45,000 for Electric Rotisserie package. For their franchise package inclusion are Proprietary marks, logo, Site location, Evaluation and feasibility studies , Store equipment and Signages, Complete set of materials and supplies availment of standard store design plan, Construction and on-going operation support, Grand opening and marketing support for the first outlet Training for franchisee staff Initial franchise grant of 3 years, No royalty fee for supplies purchased from franchisor’s commissary and 1% advertisement fee.

The team behind Murang Generics Pharmacy started conceptualizing the business in 2008 to respond to the increasing price of expensive medicine and rapid demands of cheaper medicine to serve and cater those who cannot afford expensive medicines and vitamins as their daily needs. Our first company-owned outlet was opened in Marikina City, successfully followed by Cubao, Tondo and 5 more in Cam Sur and now we’re adding 10 more outlets through franchising. Our future plans for business expansion is to provide more opportunities through franchising and by maintaining inexpensive high quality but effective medicines. We are currently open for franchising nationwide. Our Capital Requirement for a Murang Generics Pharmacy franchise ranges from 650,000 – 850,000 inclusive of the franchise fee of 250,000 for an initial term of 5yrs. For more details, you may reach us at (02) 804-3498 / (02) 823-3498 / 0917-547-6619/ 0942-390-2263 or e-mail us at inquiry@MurangGenericsPharmacy.com.ph.

Aquastar Water Technology Systems Incorporated is a Philippine based corporation located at No. 330 Mayon St., Brgy. Lourdes, Quezon City established on the early part of 2009. It is engaged in direct importation of water purification and waste water treatment equipment ranging from smallest to largest capacity as well as customized design for various applications. Their main objective is to give services and solutions for various water related problem for household to highly industrialized applications. The company guarantee that, all equipment imported from various suppliers abroad has passed the quality standard prior to shipment. Their aim is to perfect the technology in providing the best system to its customers, that’s why for its five years of providing a quality service, quick delivery response to its customers and unbeatable price in the market, it gained a positive response and it was able to open more branches, distributors and dealers nationwide to serve more clients.

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Mr. Softy Ice Cream was established in year 2000. It is the pioneer and leading ice cream company with over 72 outlets nationwide and counting. Currently, we are present in 72 locations nationwide and are continually seeking strategic alliances with major malls and establishments in the Philippines. Moreover, our premium products are crowd-drawer because of its delicious, creamy taste and not to mention the quarterly marketing programs we launch which entices customers to crave for more. FRANCHISE PACKAGE: Franchise Term: 5 years Machine* (Optional) Standard Cart/ Kiosk PhP 120,000 Initial Inventory/ Supplies PhP 30,000 Security Deposit PhP 50,000 Franchise Fee PhP 100,000 Total: PhP 300,000 *Machine can be purchased from Mr. Softy or other sources. SEA brand new machine PhP 295,000 Reconditioned machine PhP 180,000 Taylor brand new machine PhP 265,000

Zenzest Asia Inc. is an organization steeped in Filipino sensibilities and values. It specializes in the development, distribution, and sales of world class yet affordable bath and body care products, fragrances and home ambiance products. From 1 cart in 2001, Zenzest now operates 40 company owned outlets and 35 franchise outlets all over the Philippines. Their vision is to provide top-quality, locally-manufactured products that will thrive in the global market. And their mission is to allow Filipino families to enjoy world-class, locally manufactured products at affordable prices. To effectively contribute to the society by providing jobs and thereby uplifting the country’s economy and morale.

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Master Siomai is a food cart franchising business developed by Masterrific Foods, an 11-year-old company specializing in the production and distribution of processed meat such as ham, bacon, burger patties and siomai to its diverse clientele ranging from hotels, restaurants and market places. Still going strong seven years after it was established, the success and experience of Masterrific led it to another highly-promising venture in 2007 – a Food Cart Franchising. This gave birth to Master Siomai which grew to 550 outlets and counting to date. The company also has branches in major malls like SM, Robinson’s, Gaisano, Ayala, Gotesco, NCCC, Puregold, Waltermart and Savemore. Its rapid growth can be attributed to its very efficient system, high product quality, and exceptional personnel. One of the keys to Master Siomai’s sensational success is credited to its very own distinctive Japanese siomai – pork siomai wrapped in genuine Japanese seaweed specially topped with crab. To complement this feature product, our signature Japanese-inspired food cart is designed in a way that will contribute to the light and pleasant atmosphere that our patrons deserve. Aside from these, we also take pride in our delicious and flavorful beef, pork and shrimp siomai plus a thirst-quenching gulaman pandan drink to serve as refreshment. Other new and exciting products will be rolled in the future not only for the market to embrace, but for our customers to enjoy.

MEGASIGN offers a promising alternative to vinyl tarpaulin! Metro Manila has largely complied with Sen. Loren Lagarda’s “Total Plastic Bag Ban Act of 2011″ in order to prevent more non-biodegradable waste from polluting the environment. The law imposes different punishments for violators. In the last national election, campaign materials were mostly made of vinyl tarpaulin. This year, politicians and candidates alike can make a good name for themselves if they can walk their talk. Megasign Corporation has the solution in direct-to-fabric (DTF) printing of campaign materials. For more information, call (02) 725-2285, 726-2373 or 727-0716.


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Tata Motors Limited is India's largest automobile company, with consolidated revenues of USD 42.04 billion in 2014-15. It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The Tata Motors Group's over 60,000 employees are guided by the mission "to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally." Established in 1945, Tata Motors' presence cuts across the length and breadth of India. Over 8 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company's dealership, sales, services and spare parts network comprises over 6,600 touch points, across the world.

Foss Coffee & Co. is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends. With the growing demand for high-quality gourmet coffee and great service, Foss Coffee will capitalize on its proximity to the Universities and Call Centers to build a core group of repeat customers. Foss Coffee will offer its customers the best prepared coffee in every area. The menu of the Foss Coffee & Co. will be built around espresso-based coffee drinks such as latte, mochas, cappuccinos, etc. Such espresso shots are combined with steamed milk and/or other additives like cocoa, caramel, etc., to prepare the espresso-based beverages product such as Blueberry Cream, Black Forest, Coffee Jelly, Choco Loco, Choco Mint, Dark Mocha, French Vanilla, Java Chips, Kopi Brownies, Kopi Caramel, Strawberry Cream, Vanilla Oreo and White Choco Oreo. This will be achieved by using high quality ingredients and will be strictly following the preparation guidelines. The store layout, menu listings and marketing activities will be focused on maximizing the sales of higher margin espresso drinks. For the gourmet clientele that prefers to prepare its coffee at home, FOSS Coffee & Co. will also be selling coffee beans.

Back in August 8, 1999, Ms Vina Morales and Ms Sheila Moreno decided to put up a modern, Spanish salon concept. This gave birth to Ystilo Salon. Since then, Ystilo Salon has provided quality service using reasonably priced imported products and top notch customer service. This year marks the continued success of one of the country’s leader in the Salon industry, Ystilo Salon International Franchise Corporation, as they commemorate 16 years of providing quality service & glamour to the Filipino consumers. This is proven in numerous awards the company has achieved over the years some of them are 2015 Best choice awards for trusted beauty salon (National), 2015 Best Choice awards for entrepreneur for beauty and salon industry and outstanding entrepreneurial achievement award for excellent customer service. On the other hand, Ystilo Salon is still expanding and open for franchising all over the Philippines. For franchising inquiry please contact numbers: (02) 415.0222 Mobile: 0917-3124210/ 0922-8-YSTILO, email: franchise@ystilosalon.com.ph/ ystilomarketing@gmail.com.

Modern Filipinos are known to have diverse taste buds. We all have embraced delicious food from our neighbor countries and Shawarma house is our ticket to access Mediterranean food with a local twist! Who will not love to eat Shawarma given that it is made of thinly sliced cuts of meat, like chicken, beef, goat, lamb, and sometimes turkey, rolled into a large piece of flat bread or pita with hummus, tahini, pickles, vegetables, and even french fries. We can refer it as the Middle Eastern Style Burritos. Shawarma House was established on the third quarter of 2003 and now has more than 20 company-owned outlets across Metro Manila and other key provinces. They offer delightful snacks that can be enjoyed by everyone. Shawarma House only use the freshest meat and vegetables and create their own pita bread to ensure that every serving will satisfy their patrons. They offer affordable Mediterranean food which is rich in protein and with a taste that you will surely look for every time, anywhere you are. Discriminating palates will surely fall in love with Shawarma House’s signature.

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THE EIGHT BOOKS THAT CHANGED MY LIFE By: Bunny Pages

PART 1

I've lost count on the number of books that I've read these past 50 years. It was a blessing that I used reading as a refuge for my shyness and lack of self-confidence. Without the self-help books that I devoured as a teenager, it would have been impossible for me to overcome my inferiority complex. Even today, there is always one by my side (although it's now in either a Kindle or an iPad). I read at every opportunity I can get: at home, at airports, in restaurants and while waiting for appointments. In this way I'm always learning and scanning for new ideas. While reading played an invaluable part during my formative years, it's even more important to me now as an entrepreneur. I believe that many entrepreneurs don't scale up simply because they don't read enough. When people ask me how I became who I am today, my answer is always the same - through reading. Of course some books have had more influence on me than others. There's a saying that goes, when the student is ready, the teacher will appear. It's the same for me with books. It's hard to believe but the right book just appears when I need it the most. It must be the Law of Attraction at work. Listed below, in the order of their appearance to my life, are the eight books that changed my life as a young adult:

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1) How to Win Friends and Influence People by Dale Carnegie Although published in 1936, its principles are as relevant today as they were 79 years ago. I credit this book as the one that was most instrumental in pushing me out of my shyness and low self-esteem as a teenager. This classic sold over 15 million copies. 2) The Power of Positive Thinking by Dr. Norman Vincent Peale First published in 1952, it was translated into 15 languages and sold over 7 million copies. This book helped me develop the mental strength to surmount obstacles and maintain a positive outlook in life. 3) The Magic of Thinking Big by David J.Schwartz First released in 1987, this book helped me think beyond the ordinary and set my goals high and then exceed them. Dr. Schwartz showed me that I didn't have to be a brilliant or talented person to attain great success and happiness in life. All I need was to learn and understand the habit of thinking big and behaving in ways to get me there. 4) Psycho-Cybernetics by Dr.Maxwell Maltz, M.D. This self-help book was published in 1960 and sold 30 million copies. From Dr. Maltz, I learned that our sub-conscious mind can be programmed to succeed thru positive self-talk. Talk to yourself in a negative way and you will fail. But talk to yourself in a positive way and you will succeed. This is a message that's still relevant today as it was 55 years ago.


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Affordable Style When it comes to decorating a home, most of us know what we want yet we tend to spend a lot of time analyzing our requirements and personal style versus the budget. San-Yang Furniture is the brand of affordable furniture that creates a conversation on each area of your house. It can provide a varying home style that conveys a feeling of being comfortable without crowding a room. Home are often beautiful because of the mood that they invoke not because of the expensive artwork or designer they possess, and San-Yang is the best brand for a customer who is trying to put extraordinary designs of furniture on a budget. What makes a home warm and inviting is not how much it costs. San-Yang Furniture is a recipient of the Superbrands Award and the only one in its category for the past years. While a top of mind brand, the company continues to dedicate itself towards improving the quality and delivering a more fascinating design to the consumers.

Ma San-Yang bahay. Magandang buhay. www.franchising.ph

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FRANCHISE INFORMATION: Franchise Fee Royalty Fee Contract Term Space Requirement Capital Requirement

Php 500, 000.00 Not Applicable 5 years Minimum of 100 sq.m. 1.5M - 2M

Inclusive of: Use of San-Yang Furniture trademark, name and logo Comprehensive franchise operations manual Franchisee, management team and staff training Nationwide and local marketing Market research and development Site selection and evaluation assistance Pre-opening and grand opening assistance Procurement program

For inquiries, please call (02) 293-4333 to 39 and look for Ms. Evette R. dela Cruz or Ms. Leine de Jesus


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MANAGING CHANGE - to do or not to do By Wilson Ng

The difficulty in managing the organization is not only a financial or technical issue. It can be cultural or emotional. Many projects that are viable from a technical or financial point of view fail. It may be failure of prioritization or of management. In other cases, it can be mostly cultural - it fails because of the non-support or even plain sabotage of members who may not want the project to succeed. In most companies, many projects will be in the product or process development area. It may be to introduce changes that may impact some people, and requires people to change, which most may not welcome. We are creatures of habit, and set ways of doing things don’t change easily, irregardless of what a company claims. It is noteworthy that the only time ( and it is still difficult) that a company can realistically change its culture or the set way of doing things is when the company is on the verge of financial problems. New managers are called in from outside ( inside managers who grow up in such culture may be a victim of such set ways themselves, and occasionally, personal ties or other concerns inhibits them to introduce change radically) , who can introduce the change that there is some small chance of success. In his book, Who Says Elephants can’t Dance, Lou Gerstner aptly asks how supposedly smart managers never saw the complacency and ineptness that have started to beset IBM on the early nineties.

Some possible areas of concern by stakeholders may include the change in relationships, work hours, nature of work, the learning of new skills, the preservation of jobs, the disappearance of benefits, privileges or authority. In these cases, it should be recognized that cultural changes are more difficult and time consuming to initiate and execute than technical changes. If there is any factor that should be considered carefully, it should be the people factor. People resist change, especially if imposed on them. Therefore the project manager should recognize such conflicts, and be able to initiate change effectively. This is through slowly overcoming the resistance by building motivation and commitment through their involvement. If the project will really be of benefit, conflict or resistance can be mainly due that the person not understanding or not being consulted. Or as in the case of changes made previously that was not too successful, they may become fed up or cynical about the constant change which they feel have not exactly benefited their status. At any rate, the people factor can be every bit as important as the technical one.

Wilson ng Real knowledge is to know the extent of one's ignorance - Confucius - Ng Khai - Translating Technology to business Strength. on its 22nd year! - WILSON_AT_LINKEDIN

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DREAM BIG . . . . WIN BIG By: Paul Pereyra

Once upon a time a man went fishing. Interestingly, every time he caught a big fish, he threw it back into the water. Then every small fish he caught went into his bag. Finally, a man who was confused with his brand of fishing asked, “Why are you keeping the small fishes & throwing the big ones away?” The fisherman replied: “Because I only have an eight-inch frying pan and anything bigger than eight inches does not fit my pan.” It is in our DNA to succeed beyond measure. God has gifted us with such. But human as we are we set limits as to what we can achieve. According to Arthur Ward one of Americas greatest inspiration writers “Nothing limits achievement like small thinking; Nothing expands possibilities like unleashed thinking.” The world’s greatest achievers are BIG thinkers. Steve Jobs had a big and bold dream of putting computers in the hands of everyday people. Walt Disney’s vision of creating the happiest place on earth gave birth to Disneyland. Under John F. Kennedy’s leadership his dream of landing on the moon seemed insurmountable & far-fetched till it became a reality. Write down your dreams and better yet visualize them. Imagine walking through the mansion of your dreams, picture yourself climbing Mt. Everest or visualize yourself flying an F-16. In the opening of one of the EPCOT

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centers a reporter once said to Lilian Disney “it’s such a shame for Walt Disney not to be here to witness this.” She turned to the reporter and said “ohh he saw it, and long before we ever did.” Marcus Aurelius who rose to become one of the last five good Emperors of the Roman Empire says “Dream big dreams; only big dreams have the power to move men’s souls.” What we think determines who we are. So if we think small we will remain small but if we think big chances are we will surely grow. Most unsuccessful people unfortunately focus on just surviving, mediocre people are more concerned about maintaining the status quo while successful people focus their thinking on challenging existing paradigms and focus on how to achieve progress. More importantly BELIEVE that they will come to pass. Have FAITH that God will see them through. The bible in Luke 17:6 says: The Lord answered, "If you had faith even as small as a mustard seed, you could say to this mulberry tree, 'May you be uprooted and thrown into the sea,' and it would obey you! Mountain moving faith: that’s the stuff that winners are made of. Are your dreams big enough? Can they enhance people’s lives? Can it turn your company into a billion dollar empire? Encourage your family members or your people to dream BIG. Re-live your dreams, go for it, act, believe and rejoice as you see each one unfold as you go through life. This world belongs to the Dreamers. For Motivational Seminars, Brand or WOW Workshops you may reach Paul Pereyra at 09176469857 or email him at pere.branding@gmail.com


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SITE SELECTION

• Visibility: Is visibility important to the success of your business? If your product is an impulse item or geared towards mass markets, then you need to be where customers can see your business.

ASSISTANT AND APPROVAL

• Hours of operation: Do the hour of operation match the needs of your customer?

By: Rudolf Kotik

• Parking layout: Determine how much parking you need and select a location that offers it.

Franchisors in the Philippine usually do not provide locations and prospective Franchisees have to find them by themselves. However, Franchisors will know where a franchised business shall be located within a certain area and will inspect the site prior to the start of construction or operation, if the location is suitable for the franchised business. Franchisors will require Franchisee to conduct preliminary research on potential sites. In most cases, property owners, real estate brokers or shopping mall managers provide the demographics and other commercial information pertaining to a potential site. Franchisee or his employees might have to spend some time at a location to do traffic or pedestrian count and to study flow of people and traffic. Franchisors should approve only suitable locations, those locations that they would approve also for Company owned outlets. Plenty of Franchisors approve also not suited locations just for the sake of getting the Franchise Fee from Franchise applicants. Good Franchisors turn down up to 90% of location applications to make sure the location is profitable for Franchisee. How to evaluate a location: • Accessibility and traffic patterns: Is it easy to exit and enter into traffic? Are difficult intersections, major road construction or other impediments? What time of the day is traffic heavy? Where is the traffic going? Are people shopping or merely commuting to neighborhoods where they can purchase your product or service from a more convenient store? • Zoning: does your municipality or City allow that kind of business at a certain location?

• Public transportation: Extremely important if it is a product for the “masses” that your outlet is in front of public transportation. Also if you have a lot of employee in the Franchised business who have to commute to work. • Neighborhood development: Is the neighborhood stable or declining? What kind of subdivisions or living conditions are in the neighborhood of the outlet? • Competing outlets: Are competing businesses located in the immediate vicinity? If so, the good news is that your location is attractive; the bad news is that you’ll have competition. • Size: Do you require space for selling, storage, production, or maintenance of equipment? The larger the space the higher the rent, electricity and maintenance. The Franchisor shall recommend or require certain square meters as minimum space. Don’t rent more than you need. • Lease term: Look for a lease whose term matches your franchise contract but can be renewed. • Utilities: Water supply, electricity, sewage, telephone lines play an essential role in determining the suitability of a location.

Rudolf Kotik is the Founder of RK Franchise Consultancy, your Expert in the Franchise Industry, and can be reached through rk@rkfranchise.com or through (02) 912.2946 and 912.2973

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Volume 5.5 SEPTEMBER - OCTOBER

TAX MANAGEMENT Tax Officer, A Critical Position - Now Imperative in every Business By. Mr. Dioscoro O. Odsinada, CPA

In many companies, tax compliance matters are handled by the finance officer or the chief accountant. And it has become a common view that handling tax matters is difficult, bothersome. Hence, the need for a compliance tax officer in every business is now a must. But serving as a company’s tax officer is no joke. A single mistake in the tax treatment of certain transactions may mean unnecessary loss of company resources. For such a critical position, what should keep the tax officer going? The tax officer should stay informed; prudent with tax records of transactions; pay attention to BIR approach on tax assessments; and keep in touch with the company’s outside tax consultant, if any. With the awesome responsibility attached to the position, and with the employer’s expectation of a better work performance, it is also imperative that the tax officer undergoes continuous training and development “in house” or “outsource”. Often times, companies ask if there are things a compliance tax officer, finance officer or chief accountant should know, considering the pressures on the job. Here are a few basics. Notices of audit for “open years” (i.e. years which the BIR’s right to assess has not yet prescribed). Attending to the requirements of the BIR audit is disruptive to the core responsibilities of a tax officer. It bears mentioning though that receiving audit notices is normal and expected. As long as you are

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confident in your tax records of transactions, then allay the stress and anxiety that usually come with it. BIR examiners are under authority of the tax agency as an institution. Like us, the BIR examiners are actual people. They want to complete their work with minimal bother, in the usual reasonable audit. The audit completion starts with routine events like the critical initial phase of document submission. Do not think of the BIR as an impersonal institution. It may be antagonistic to its process. The approach of the BIR in tax assessments has evolved, now placing more reliance on “third party information” (TPI). The information is sourced from your suppliers and customers and, for imports, from the data in the Bureau of Customs (BoC). If you receive a list of underhanded findings, keep calm. You have your own records and documents as proof. Keep abreast of developments in tax rules, in addition to the various shifts in their interpretations. The Philippine tax system is not just about compliance with the Tax Code. There are special laws, court decisions, revenue regulations (RR), revenue memorandum circulars (RMC), and the BIR examinations, among others, to contend with.

Mr. D. O. Odsinada is Head of Roy Odsinada Consulting Inc. rendering tax and management advisory to business and industry. He is also Managing Partner of Odsinada Dioscoro & Co., a public accounting firm, and has had forty-six years exposure in the professional services sector. He publishes The Business and Tax LEDGER, providing general guide to developments in business and taxation and regulatory rules. He obtained his B.S. Commerce (Accounting) degree from the Far Eastern University (FEU) in Manila in April 1967 and passed the CPA Board Exam given that same year. He hails from Guinobatan, Albay, near the foot of Mayon Volcano, in the Bicol Peninsula. He can be reached at Tel. (632) 411-1489 or Mobile 0920-909-0093. You may visit www.odsinada.com


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Volume 5.5 SEPTEMBER - OCTOBER

Fire Safety in the Workplace

By Atty. Sara Jane A. Suguitan

As you enter the glass doors of buildings and establishments, have you ever wondered why there’s a sign that says, “Please use other door”? Why can’t we use both or all doors to enter freely? Apparently, this is a security vs. safety issue. Closing one door allows security personnel to screen those who enter (and consequently create a bottleneck of customers who need to get into the building and transact business). That’s the security side. On the other hand, in case of fire or other emergency, and people need to exit, they will all have to troop to the only door that’s open, and cause valuable time to be wasted in the process of evacuation, thereby leading to more injuries or casualties. Should an establishment choose security over safety? In Makati City, a fire drill is

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routinely held among the different high-rise buildings, both commercial and residential. In a building of 30 floors with at least 5 rooms or offices per floor containing 5 persons per office, there will be at least 750 persons that need to evacuate, assuming no one has choked or passed out from the black smoke. All 750 will be running towards the stairs in a race to the ground. While it’s good to know where the exits are, it would be better if the exits are clear (no locked doors with signs telling you to go run to the other door), sprinklers are working properly and the fire extinguishers are likewise accessible and can be handled by the occupants. The recent earthquake drill in Metro Manila differs from the usual fire drill held by Makati’s

Bureau of Fire Protection only by one thing - the drop, cover and hold position that you must assume prior to evacuation. It was all about evacuating with a backpack of essentials, nothing more. (Well, it was also about interrupting work in the middle of the day, and obstructing business transactions. I’m being a realist.) In our Fire Code (yes, we have a law on fire), it is prohibited to lock fire exits during a period when people are inside the building. It is likewise prohibited to obstruct or block exit ways. Question is, is the main door to the building or establishment considered a fire exit? It must be, and if that’s so, then why do we lock doors for people to use the other door? A few years back I involuntarily attended a fire safety seminar by Mr. Ube, a successful Chinese businessman and a fire fighter. I’m glad I heard him out. Not only was the twenty-minute talk funny and lively, it was eye-opening. He called on me in the audience and asked, “If you were cooking and

2015

the frying pan caught fire, what’s the first thing you would do?” I thought for a second before I answered, “I’d start shouting and running away.” The audience laughed. While that’s true, he taught us how I should identify the cause of fire and address the situation. I can’t quite put it in writing. You’ll have to watch it first hand. Since then, I became so fire-safety conscious that I even asked Mr. Ube’s group, Txt Fire, to give a lecture and demonstration to our local state university, Bataan Peninsula State University. Fire safety should be everybody’s business. Evacuation drills are not enough, and we really can’t just count on government or any outsider to help us in case of emergency. Can you run smack to a closed door in case of emergency? No. Then why do we obstruct doors? Twitter @coffeeright


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Volume 5.5 SEPTEMBER - OCTOBER

THE

superbrandonline.com STORE By: Harry Tambuatco

Introducing the superbrandonline.com store soon to launch by September. This exclusive Superbrand store will feature products and services of the multiple awarded brands that already enjoy a market niche and a successful business model. The awareness campaign of the online store will be promoted by all Superbrands in all product packaging, advertising and promotions, and PR. Buy only the genuine products from the Superbrands. Today’s success of the online stores have been born out of the emerging and aggressive pursuit of the multiple e-commerce trade. It is not hard to imagine the convenience these digital stores provide vis-à-vis the traditional stores such like the malls. Traffic has contributed to the online success plus the inconvenient queues not to mention the availability of specific products and designs. Inventory on the superbrandonline.com stores are based on actual manufactured and produced goods made available for sale. SRP is standardized with only logistics the consideration. Delivery charges are minimal if not less for the out-of-pocket by the consumer considering travel time (inconvenience), transportation cost (including petrol charges), traffic (thanks to the DOTC), and more secure since buyers are no longer inconvenienced with insecurity having to carry and travel bulk items from the store to homes. Today’s ecommerce is complimented by innovative and computational algorithms that allows instant approvals and cost variances. Consumers at their convenience are no longer limited to credit cards but COD allowing rejection at their convenience for whatever reason. Digital security gates like the security personnel at the malls carrying shotguns are removed other than the identification of delivery addresses with branded logistics suppliers established nationwide and now even abroad. Now you can shop in the office. It is all about the convenience the superbrandonline.com store is all about. The direct and satisfactory relationship with consumers is what has prompted Superbrands to go the extra mile. There is no requirement for an awareness for the superbrandonline.com store unlike the multiple sites that have emerged still requiring advertising and promotions to introduce their digital stores and establishment simply because our Superbrands are already successful servicing their loyal customers. Branding is all about the consistent delivery of the brand promise. This generates automatically integrity for the brand which makes it the Superbrand! Get your products directly from the manufacturers with the exact variants you require. Imagine having to carry an electric fan, a heavy flat iron, bulky plastic containers, closets and beds that require delivery anyway. While the malls are somewhat an adventure and a past time for some, you need to spend on food and beverages having to traverse the lengthy isles and the population density. In case you don’t have a car, commuting and having to take the whole family can be an inconvenience. It is not because ecommerce has introduced the perfect shopping experience, it is because it has become the only sensible way to shop today! Go ahead google superbrandonline.comthis September. Harry Tambuatco President & CEO Superbrands Marketing International, Inc. 19F 88 Corporate Center Building, Sedeno Street, Salcedo Village, Makati City, Philippines Phone (632) 7288880 / Fax 7581220 www.superbrands.com harrytambuatco@gmail.com harry.tambuatco@superbrands.com

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