PFA vows to promote franchising to MSMEs

MANILA, Philippines — The Philippine Franchise Association (PFA) will continue working with the government to promote the growth of the franchise sector and interests of micro, small and medium enterprises (MSMEs) following the recent issuance of an executive order which seeks to strengthen the industry.

“We support the spirit of EO 169, which is to protect the interest of MSME (micro, small and medium enterprise) franchise buyers,” the PFA said.

The PFA was invited by Trade Secretary Ramon Lopez, Trade Undersecretary Ruth Castelo and Trade assistant secretary Ann Claire Cabochan to be part of the process in drafting the EO.

“PFA will continue to work with the national government as the IRR (implementing rules and regulations) is being developed in order to continue advocating for the interests of MSMEs and ensure the growth of the franchise sector which provides businesses opportunities and jobs for over two million Filipinos,” the group said.

The EO prescribes minimum terms and conditions for franchise agreements entered into by a franchisor and MSME franchisee to promote fair and equitable business practices.

Under the EO, franchisors that are members of duly registered franchise associations have to register their franchise agreements with the Department of Trade and Industry (DTI).

The franchisors will also execute an undertaking that all future franchise agreements will incorporate the prescribed minimum terms and conditions.

The DTI, for its part, will create an MSME Registry of Franchise Agreements, which will only cover those with the prescribed minimum terms and conditions.

“We, in PFA, have been ceaseless in our efforts to educate the public on wise franchise investment,” PFA chairman Sherill Quintana said.

“Transparency in a franchisor’s business dealings is also a major feature of the Fair Franchising Standards (FFS), which is PFA’s code of ethics,” PFA president Chris Lim said.

The FFS guides all PFA members in the conduct of their business.

Bulk or 70 percent of PFA’s members are MSMEs.