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Sales of homegrown franchises are seen growing by 20 percent every year from P60.5 billion in 2009 such that sales are likely to hit P100 billion sales in two years as most participants continue to expand from Metro Manila to the countryside while others start exploring the international market.

Paulo Tibig, president of the Association of Filipino Franchisers Inc. (AFFI), said the expected growth is driving the Philippines on its way to becoming the franchising hub of Asia.

Tibig said group consolidated sales will grow 15 to 20 percent this year due to the rebound from the financial crisis.

"This shows the resiliency of franchising. Local franchises were not hit hard by the financial crisis but in fact continues to be resilient amid uncertainties," Tibig said.

He said the number of franchise concepts is growing, with AFFI corporate membership increasing from 80 in the beginning of the year to 119 at present.

Tibig said these concepts operate almost 6,000 stores which employ 36,000 workers. Every store on the average employs between 5 and 10 workers.

He said the number of AFFI members has doubled from three years ago and the thrust among them now is to venture outside Metro Manila.

AFFI vice president Neil Mercado said concepts are diverse but more and more services are now beginning to be franchised.

AFFI expects the ratio of food and non-food services to stand at 55:45 by next year from 80:20 in the past.

A new trend has been observed in entrepreneurs cashing in on technology and business solutions as franchise concepts.

Mercado said quite a few homegrown franchises are starting to go out of the country such as Potato Corner which is competing well in the United States.

Figaro, Florgelato, Goto King Aquabest also plan to go overseas soon. Bibingkinitan is setting up stores in Indonesia.

But AFFI said homegrown franchises continue to find the local market viable since the economy remains strong. Opportunities outside Metro Manila are seen as more lucrative because competing concepts are limited and operating expenses are lower.

Tibig said AFFI members are regulating themselves by establishing standards to protect both investors and consumer.

But he warned that too much regulation through restrictions on franchising practices may stunt the growth of the industry.

To address the financing needs of members, AFFI group has made an exclusive arrangement with BPI Family Savings Bank for special loan packages financed by the Ka-Negosyo loans at a minimum of P500,000 to a maximum of P3 million.

AFFI is staging the 9th Filipino Franchise Show on September 16 to 19 at the World Trade Center.

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