Draft EO on franchising model in the works — DTI

MANILA, Philippines — A draft executive order to promote the franchising business model is now being finalized, according to the Department of Trade and Industry (DTI).

Speaking at the Franchise Asia Philippines virtual conference yesterday, Trade Secretary Ramon Lopez said the DTI has been working with the Philippine Franchise Association to finalize the proposed EO.

“The EO hopefully will further strengthen and increase the confidence in franchising business models, by having a clear template of franchise terms and conditions and a registry system,” he said.

Amid the pandemic, Lopez said the DTI is supporting micro, small and medium enterprises (MSMEs) and consumers to enable them to recover as the economy reopens.

To maintain and accelerate the economic recovery, he said there is a need to expedite the vaccination program.

He said the government continues to encourage the private sector to allow their own employees to be vaccinated within company premises and during working days by partnering with the government.

In addition, he said the government is committed to adopt ease of doing business measures in government regulatory processes and transactions.

With the recent shift to the Alert Level System in responding to the coronavirus pandemic in the National Capital Region, Lopez encouraged MSMEs especially those in Metro Manila to secure safety seals.

He said a safety seal would allow an establishment an additional 10 percentage points on top of the allowed operational capacity once the area moves to Alert Levels 1 to 3.

A safety seal shows the establishment is compliant with the minimum public health protocols for the pandemic.

At present, Metro Manila is under Alert Level 4 which has allowed dine-in restaurants and personal care service establishments to reopen.

PFA chairman Richard Sanz said the group welcomes the slight easing of restrictions, but continues to call for faster vaccination rollout, as well as easing of mobility restrictions.

PFA president Sherill Quintana said the efforts being undertaken by the government and the private sector to reopen the economy gives the franchising sector encouragement.

“Even during this time of pandemic, we, at the PFA, would want to bolster the role of franchising as one of the key contributors to the country’s economy through the creation of enterprises and generation of jobs,” she said.