By PNA and U.S. News Agency / Asian

Homegrown franchises are pushing for more government regulation in light of the growing number of bogus franchises victimizing overseas Filipino workers (OFWs).

Ricardo Z. Cuna, chairman of the Association of Filipino Franchisers Inc. (AFFI), said at the press conference for its 10th Filipino Franchise Show on July 21 to 24 at the World Trade Center wherein 280 franchises will be showcased.

AFFI reported that year to date, sales of member franchises already reached P80.5 billion or 20 percent higher than last year.

AFFI expected sales to further grow by 25 percent in 2012 from 20 percent this year, on back of the domestic economy’s strong fundamentals and increasing development in the countryside.

Cuna said the industry continues to post robust growth so is the growth of the bogus franchises.

“We don’t have an exact figure, but we know that the number of bogus franchises has been increasing,” he said.

“We are more concerned with protecting the industry, especially in the presence of so many dubious and fly-by-night establishments who have been attempting to ride on the success of franchising in the country. The protection of upcoming as well as established entrepreneurs is what we are fighting for,” Cuna said.

According to Cuna, these fly-by-night “franchisors” offer franchise enterprises for as low as P10,000 to P25,000. With very cheap and incredulously inexpensive franchise fees, many Filipinos, particularly OFWs, are duped to invest hard earned money in questionable ventures.

Cuna, however, warned that a very inexpensive franchise should already be a red flag to those who want to go into franchising, since quality franchises cannot be granted without the appropriate costs.

“Franchising has to be granted on a premium. These fly-by-night franchises cannot value what they did not work for that’s why their franchise costs are dirt-cheap. Eventually, after six months, the franchisee’s money disappears and so is the franchisor,” he explained.

Thus there is really a need for industry regulation to further prevent these fly-by-night franchisors from sprouting.

Cuna pointed out that the Philippines is among the few countries, if indeed not the only country, without franchising regulations.

He said the absence of regulations for the franchising industry makes it very easy for anyone to enter the industry, but this also makes it easier for carpetbaggers to join and exploit the industry by posing as legitimate franchisors.

“I would like to see rational regulations for the franchising industry. We want strict compliance with such government regulations. This may cause us to bear higher taxes but regulation will protect the industry from exploitative and pseudo-franchisors,” Cuna said.