An Assessment of Challenges of Food Cart Franchising Business in Metro Manila

Abstract

Franchising is a rapidly growing form of business in several countries in the world. It is a continuing relationship, where the franchisor provides license privilege to do business and assets in organizing training, merchandising and management in return for a consideration from the franchisee (Berredo and Mendoza, 2011). This research study assessed the challenges of food cart franchising business in Metro Manila. It had taken into account the demographic profile of the franchisees in consideration with their level of assessment of internal and external challenges of food cart franchising. This study concluded that the long return of investment is the most assessed internal factor challenge by the franchisees and the increasing number of competitors for the external factor challenge. To address the challenges of food cart franchising, it is recommended for the franchisee to know the competition present in the market, know the current customers, and target new markets to add to the customer base and to attend seminars to gain more knowledge about franchising. It is recommended for the franchisors to improve promotions of the franchise brand and continuously support the franchise system.