🇵🇭 The Philippines · reviewed 2026-10-09
Finding a master franchisee in the Philippines
Most foreign brands enter the Philippines through a Filipino master franchisee, because it avoids the PHP 25 million capital floor that applies to a foreign-owned retailer. The deal still has to fit the IP Code's contract rules, and the candidate needs the capital and the sites to roll out.
Where to meet candidates
- The Philippine Franchise Association's annual Franchise Asia Philippines is held at SMX Convention Center Manila. The 2026 edition ran an International Franchise Conference on 23 April and the expo on 24 to 26 April. Official · Philippine Franchise Association, 2026-04-23
Rules that shape a Philippine master deal
- A master franchisee that is a Filipino-owned company does not have to meet RA 11595's foreign-retailer capital floor of PHP 25 million. Official · RA 11595, Lawphil, 2021-12-10
- The master agreement is a technology transfer arrangement, so it must follow IP Code sections 87 and 88, including Philippine governing law and the licensor bearing Philippine taxes on payments. Official · RA 8293 (IP Code), Lawphil, 1997-06-06
- If the master franchisee sub-franchises to small businesses, EO 169 asks the franchisor to register those agreements with the DTI within 30 days. Official · Executive Order 169 (2022), Lawphil, 2022-05-12
Vetting checklist
Our checklist for every master franchise candidate, used across Southeast Asia:
- Capital beyond the fee: ask for proof of funds that covers the master fee, the first three to five units and 18 months of head-office running costs. A candidate who can only fund the fee will fund the first stores from sub-franchise sales, which is where most master deals break.
- Operating track record in the same category: someone who already runs multi-site food service or retail in the country knows rents, staffing and suppliers. Ask for the unit list, opening dates and one year of store-level profit and loss.
- A development schedule they wrote themselves: the candidate, not the franchisor, should propose the store-opening schedule by year and city. Compare it with what they have opened for other brands in the past.
- Real estate access: who negotiates leases, with which mall operators, and on what terms. In most Southeast Asian cities the site pipeline decides the first two years more than the brand does.
- Conflicts of interest: list every brand the candidate or their family holds. A competing franchise in the same category is a reason to walk away, or at least to write a non-compete into the agreement.
- Who will run it day to day: meet the general manager, not only the investor. Ask whether they will attend your training in the home market and for how long.
- Legal entity and licences: confirm the company that will sign, its shareholders, and that it can legally hold the business licence, import ingredients and pay royalties abroad. Each country guide explains the local rules.
- References you call yourself: speak to at least two franchisors the candidate has worked with, and one landlord.
Next step
When the shortlist is ready, the FranX Rights Board shows which master and area rights are open by country, with the brand identity hidden on the public listing.
More on the Philippines
Franchising in the Philippines: the 2027 guide for foreign franchisorsFranchising into the Philippines: no franchise statute, IP Code rules, EO 169 for MSMEs, retail ownership thresholds and 25% royalty tax, sourced.Franchise law and registration in the PhilippinesNo franchise statute: what the IP Code requires in a franchise agreement, when registration is needed, and what EO 169 asks of franchisors.Can foreigners own a business or franchise in the Philippines?Foreign ownership of a Philippine franchise operator: RA 11595 retail capital, the 13th Negative List and Foreign Investments Act thresholds.Trademarks and IP for franchisors in the PhilippinesProtecting a franchise brand in the Philippines: trademark licence recording with IPOPHL, quality control and technology transfer rules.Tax on royalties and franchise fees in the PhilippinesPhilippine tax on franchise royalties: 25% final withholding, 12% VAT withheld by the payor, treaty relief under RMO 14-2021 and who bears the cost.ASEAN franchise law comparatorSeven ASEAN markets side by side, from Vietnam to Singapore, with sources.