Part 1. Fundamentals of Franchising Flashcards
(17 cards)
Franchising in the Philippines is regulated by
multiple legal frameworks:
-Contract Law
-Intellectual Property Law
-Department of Trade and Industry
Governs the franchise
agreement between franchisor and franchisee.
Contract Law
Protects
trademarks, logos, and proprietary business
information.
Intellectual Property Law
Provides specific
regulations for franchising disclosure and
compliance.
Department of Trade and Industry (DTI)
The
principal organization that promotes
franchising and organizes major events,
including Franchise Asia.
Philippine Franchising Association (PFA)
Disputes may not always be resolved through
mediation; legal remedies follow the general
rules under contract law.
Contractual damages and enforcement depend
on the franchise agreement terms.
Dispute Resolution in Franchising
There is no dedicated government agency
solely responsible for advising the public on
franchise agreements. The DTI provides
general guidelines.
Government Agency on Franchise
Agreements
enforces RA 10667 to ensure fair
competition and prevent monopolistic
practices.
The Philippine Competition Commission
(PCC)
Required Franchise Documents
- Franchise Agreement
- Disclosure Document
- Receipt
Legal contract between
franchisor and franchisee.
Franchise Agreement
Contains all essential
business information for the franchisee.
Disclosure Document:
Proof of compliance and payment.
Receipt
Father of Philippine Franchising, He is the one who introduced franchising to the Philippines
Samie Lim
The first Filipino brand to successfully
implement franchising.
Jollibee
Operated by the Max’s Group in the
Philippines.
Krispy Kreme Franchise Ownership
McDonald’s Franchising in PH
Began operations in 1985.
Patterned after USAID standards and
frameworks.
PFA’s Model
