Before you pay a franchise fee, get the franchisor's answers in writing on five things: what the package price includes, every recurring fee, the term and renewal cost, your territory, and who pays for the location and permits. Published figures are a starting point, not a quote.
What exactly does the package include?
Directory figures usually show a capital investment range and a franchise fee. Ask which of these the investment covers: the cart or kiosk, equipment, opening stock, training, uniforms, signage, renovation, rent deposit, permits, and working capital for the first months. Two brands with the same headline price can differ by hundreds of thousands of pesos once these are added.
What will you pay every month?
Ask for royalty and marketing or advertising fees as a percentage of gross or net sales, any fixed monthly fees, the price list for supplies you must buy from the franchisor, and whether prices of those supplies can change. Ask for the minimum order and delivery charges outside Metro Manila.
How long is the agreement, and what does renewal cost?
Many PFA listings state a term (for example 3 or 5 years) and a renewal fee or a renewal as a percentage of the prevailing franchise fee. Ask what happens at the end of the term if you do not renew, whether equipment stays yours, and what it costs to transfer the franchise if you sell.[1]
Where can you open, and who else can?
Ask for the exclusive territory in writing: the radius or barangays where the brand will not open another outlet. Ask who approves your site, how long approval takes, and whether a mall location needs its own approval from the mall.
Who handles registration and permits?
You are the business owner, so the business name, barangay clearance, mayor's permit and BIR registration are in your name. Ask whether the franchisor helps with them and which extra permits its products need (for example a sanitary permit and health certificates for food). Our Permit Path planner lists them for each kind of business.
Get these in writing
- Full breakdown of the package price and what is excluded
- Royalty, marketing and any fixed monthly fees
- Required supplies and their current prices
- Term, renewal fee and transfer rules
- Exclusive territory
- List of current franchisees you can call
- Who registers the business and gets the permits
Questions people ask
- Are the prices on brand pages here final?
- No. They are the figures the brand, the PFA directory or a news report published on the date shown. The franchisor's current offer is the only binding number.
- Should I talk to existing franchisees?
- Yes. Ask the franchisor for a list and call several, including ones outside the main cities. Ask about real monthly costs, supply deliveries and support.
- Does a franchise need its own business permit?
- Yes. Each outlet is a business in your name and needs its own barangay clearance and mayor's permit from the city where it operates. See how to get a mayor's permit.
Sources
Checked 13 November 2026. We link the agency's own page for every requirement. Rules change; confirm with the office before you pay.
- Philippine Franchise Association member directory · Philippine Franchise Association