How to Start a Franchise in the Philippines (Even If You Don’t Have the Full Capital)

For many Filipinos, starting a business is the ultimate dream. But launching a brand-new concept from scratch can be risky — and expensive. That’s why franchising has become one of the most popular ways to become a business owner in the Philippines.

According to the Philippine Franchise Association, there are now over 1,800 franchise brands in the country, making the Philippines one of the largest franchise markets in Asia. But here’s the catch: most people who want to start a franchise don’t have enough savings to cover the full investment.

If that sounds like you, don’t worry — there are ways to start your dream franchise without waiting years to save up.

In this guide, we’ll cover:

• Why franchising is a smart choice for Filipinos
  
  

• How much capital you really need to get started
  
  

• The most popular franchises in 2025
  
  

• How you can finance up to 50% of your franchise package through Pondo Pinoy
  
  

Why Franchising Is a Smart Way to Start a Business

Franchising gives you a head start. Instead of figuring everything out on your own, you’re buying into a proven system with training, support, and a recognized brand name.

The Department of Trade and Industry (DTI) estimates that franchise businesses have a much higher success rate compared to independent startups — some reports put it as high as 90%. 

Here’s why Filipinos love franchising:

• Trusted brands mean loyal customers — you don’t need to build awareness from scratch.
  
  

• Training and operations support — you get guidance from day one.
  
  

• Faster ROI — popular brands can break even much quicker than independent businesses.
  
  

How Much Does It Cost to Start a Franchise?

Franchise costs can vary widely depending on the brand, location, and size of the store. Here’s a general idea of what to expect:

Remember that these figures usually cover the franchise fee, equipment, and initial supplies — you still need to prepare working capital for rent, salaries, and marketing.

Hot Franchise Categories in 2025

Some business categories are especially popular with Filipino entrepreneurs this year:

• Milk Tea & Coffee Brands – Still a favorite in urban areas
  
  

• Food Kiosks & Takeout Concepts – High demand, quick turnover
  
  

• Water Refilling Stations – A necessity in many neighborhoods
  
  

• Self-Service Laundromats – Growing trend in residential communities
  
  

• Convenience Stores – Consistent cash flow and 24/7 potential
  
  

You can explore more options on the Philippine Franchise Association Directory.

How to Fund Your Franchise Dream

So you’ve chosen a franchise — now how do you pay for it?

Option 1: Use Your Savings

If you’ve saved enough, great. But many aspiring franchisees don’t want to drain all their funds.

Option 2: Get a Bank Loan

Banks do offer SME and franchise loans, but the process can be slow, the requirements strict, and approval isn’t guaranteed.

Option 3: Finance It Through Pondo Pinoy

This is where Pondo Pinoy Lending Corp. steps in.

Pondo Pinoy is a trusted lending company, SEC-registered, with over 50,000 Filipino SMEs financed in the past three years. Through their Franchise Loan Program, they cover up to 50% of your franchise package cost, so you only need to raise the other half.

Here’s why franchisees love this option:

• Up to ₱5 million in funding
  
  

• Fast approval process (much quicker than banks)
  
  

• Interest rate from 2% per month
  
  

• Funds go straight to the franchisor — ensuring your money is used for the franchise fee, equipment, and supplies
  
  

• Available in Metro Manila, Cavite, Laguna, Bulacan, Rizal, and Pampanga
  
  

With this setup, you get to keep more of your savings for marketing and operations — helping you start strong.

Choosing the Right Franchise for You

Financing solves the money problem, but you still want to pick a franchise that’s right for you. Here are some tips:

• Do your research – Check the brand’s track record and ask for their ROI projections.
  
  

• Visit existing branches – See how they operate and talk to franchisees if you can.
  
  

• Pick the right location – Location can make or break your business.
  
  

• Understand the costs – Look beyond the franchise fee: ask about royalties, marketing fees, and renewal terms.
  
  

Your Franchise Journey Starts Now

Becoming a franchisee is one of the smartest ways to achieve your dream of owning a business. And thanks to programs like Pondo Pinoy’s Franchise Loan, you don’t have to wait until you’ve saved every last peso.

You can start sooner, invest in marketing, and focus on growing your business — not just funding it.

👉 Apply for a Pondo Pinoy Franchise Loan today and take the first step toward becoming your own boss.