Restrictions impede Philippine brands’ entry to Canada

CEBU, Philippines —  More Filipino brands are interested to enter the Canadian market, but are having difficulties in complying with law restrictions and regulations.

Franchise expert Rudolf Kotik said there are more Philippine grown brands that want to penetrate Canada than Canadian brands considering the Philippines as potential area for franchise expansion.

Kotik, who is the founder of RK Franchise Consultancy Inc., said aside from stern entry requirements, rough weather in Canada is also a concern for Philippine homegrown brands.

“There are definitely more Filipino brands interested entering the Canadian market than Canadian brands coming to the Philippines,” he said in an interview adding that Canadian brands are more keen on exploring the USA market than Asia.

Canada only has 1200 franchise companies compared to the Philippines, which has 1800.

He added that while Philippines or Asian countries are seen to have good market base especially for consumer brands, Canadian companies still have to see this potential seriously.

“Nothing wrong with the Philippines as market for them. It’s more their unwillingness to enter Asian territories. There are only a handful Franchisors who did so: Tim Horton and some cinnamon brands,” Kotik said.

Filipino brands, which look at Canada as good expansion ground for franchise, are mostly into food. “Some Service franchises have restrictions due to certification issues.”

Kotik made this comment, following the pronouncement made by Canadian Chamber of Commerce of the Philippines (CanCham), saying franchising business is an area that both the Philippines and Canada can capitalize on.

“Franchising is a growing area that Philippines and Canada could look into much deeper,” said CanCham president Julian Payne.

According to Payne, while Filipino companies like Jollibee, are starting to enter the Canadian market via franchise concept. It is also good for Canadian companies to enter the Philippine market through franchising.

“This [franchise] will be a growing area for Canadian businesses to tap the Philippine market, given the given the complementarities of the two markets,” Payne told the Canadian Embassy to the Philippines team of trade commissioners.

Guy Boileau, Counsellor and senior trade commissioner of the Embassy of Canada in the Philippines, said franchising is not an area that the Canadian government has given focus on as of this time. However, he vowed to look into franchising.