PFA - Philippine Franchise Association

PFA Promotes Country and Homegrown Franchise Brands in Hong Kong

Written by: Ivy

Fri, 11 Jul 2014 11:46

Believing that Philippine franchise brands can become global brands and that Philippine franchising can be a major segment in the country’s export industry, the Philippine Franchise Association (PFA) is relentless in efforts to promote Philippine franchise brands to possible overseas partners. One such effort was PFA’s participation in the recently held World SME Expo 2013 at the Hong Kong Convention and Exhibition Center, where PFA not only promote the country’s emerging global franchise brands but also Franchise Asia Philippines – Asia’s biggest franchise show. The Association participated in the said event upon the invitation of the Hong Kong Trade Development Council (HKTDC), which highlights the growing importance of the Philippines in regional and even global franchising.

The World SME Expo presents a full spectrum of business opportunities and solutions including financial services, IT, accounting, marketing, business intelligence and many others. This year the event featured a Franchising Opportunities Hall, where PFA had a booth. The PFA booth attracted inquiries about Franchise Asia Philippines 2014 and the franchise brands it was promoting. The inquiries came not only from Hong Kong residents but also from exhibitors and visitors from Mainland China, Japan, USA, Europe, Africa and the Middle East. Among the Philippine franchise brands, which generated the most interest where Bench, Canadian Tourism and Hospitality Institute (CTHI), Fruit Magic, Pancake House and Yellow Cab.

One interesting visitor was a Hong Kong resident, who brought along his Filipina domestic helper in an effort to encourage her to start a business back in the Philippines.

Aside from promoting Philippine franchise brands, PFA also used the opportunity –as it always does when it participates in franchise shows – to promote the Philippines as an investment destination. PFA had double the opportunity during the World SME Expo 2013 since Mr. Samie Lim, PFA Chairman Emeritus, was also invited as one of the panelists of the said event’s Franchising Summit. During the discussion Mr. Lim stressed the favorable conditions of the Philippines as a regional hub for international franchises. These conditions include its English-speaking and well-educated work force; its huge market and growing affluence; and the country’s fast-growing economy.

SUITS THE C-SUITE By Betheena C. Dizon

Written by: Ivy

Fri, 11 Jul 2014 11:50

SUPER typhoon Yolanda (Haiyan) wrought unimaginable devastation in the Visayas and sparked a massive international relief operation to bring aid to victims. People and organizations from across the country and from around the world provided assistance. Aid came in the form of cash and goods.

This generous outpouring of support has, however, triggered the question on whether such donations are subject to donor’s tax. Not a few raised the sentiment that it may not seem right to tax the donors, who, in the first place, have extended a helping hand to those who are in dire need.

What does the Tax Code really say about taxation of donations?

As a general rule, the transfer of property through gift by any person, resident or not, is taxed at varying rates. In general, the donor’s tax for each calendar year is computed on the basis of net gifts following a table of graduated rates from 2% to 15%, depending on the amount of the donation. However, if the done is a stranger, the tax rate that applies is 30%. For this purpose, a “stranger” is a person who is not a brother, sister (by whole or half blood), a spouse, ancestor, or lineal descendant, or a relative by consanguinity within the fourth degree in the collateral line. However, donations not exceeding P100,000 are exempt. 

The Tax Code does provide for gifts or donations by residents and non-residents that are exempt from donor’s tax. These are: (a) gifts made to or for the use of the national government or any entity created by any of its agencies not conducted for profit, or to any of its political subdivisions; and (b) gifts in favor of educational and/or charitable, religious, cultural, or social welfare corporation, institution, accredited non-government organization, trust or philanthropic organization or research institution or organization, subject to the requirement that not more than 30% of the said gifts shall be used by the donee for administration purposes.

Thus, donations made to national government agencies such as the National Disaster Risk Reduction and Management Council (NDRRMC) and the Department of Social Welfare and Development (DSWD) are exempt from donor’s tax. In addition, the importation and donation of food, clothing, medicine, and equipment for relief and recovery shall be considered as that of the NDRRMC where the value-added tax (VAT) due on said importation shall be shouldered by the government.

For donations made to the Philippine Red Cross, the Philippine Red Cross Act of 2009 (Republic Act No. 10072) expressly exempts such donations from donor’s tax, and they are deductible from the donors’ gross income for income tax purposes.

With respect to donations made to non-government organizations (NGOs), the Tax Code requires that these must be accredited with the Philippine Council for NGO Certification (PCNC), so that donations to them may be exempted from the donor’s tax. The rules also require, among others, that not more than 30% of proceeds shall be used by the NGO for administration purposes.

Aside from the donor’s tax issue, the other to consider with regards to gifts or donations is whether the same is deductible for purposes of computing the donor’s net taxable income. Under Section 34(H)(2) of the Tax Code, donations are deductible in full for as long as these are made to the government to be used exclusively in undertaking priority activities in education, health, youth and sports development, human settlements, science and culture and in economic development, according to a National Priority Plan determined by the National Economic Development Authority (NEDA). Also, donations made to accredited NGOs are deductible in full. Should donations given to the government not qualify under the foregoing criteria, or are not made to accredited NGOs, the donations shall only be deductible to the extent of 10% of the donation, in case of individuals or 5%, for corporations.

However, for donations made in kind, especially made by entities engaged in the manufacture and sale of goods, these may be subject to 12% VAT, as they may be considered “transactions deemed” sale, where the goods originally intended for sale are deemed transferred, used, or consumed, even if not in the course of business.

The Tax Code and other related laws seem to provide a clear picture on the taxation of donations. In light of the current relief efforts for those in despair, the information provided can help us be both responsible and compassionate donors at this trying moment.

Betheena C. Dizon is a tax associate Director of SGV & Co.

Krispy Kreme Opens 44th Store

Written by: Ivy

Fri, 11 Jul 2014 12:47

Something exciting comes CDO’s way. On November 15, Krispy Kreme is sharing the gift of joy and glazes a new trail at Limketkai Mall, Cagayan de Oro City, making it the 4th branch in Mindanao. This new branch is also Mindanao’s 2nd Hotlight Store.

Fans who are on the go can definitely get their share of joy since the Limketkai Mall Branch is also the 5th drive-thru store both in the country and Asia.

The branch opening in CDO City also means that fans from Butuan, Camiguin and Bukidnon are just a ride away!

And the fun is just beginning.

Before Opening day, Krispy Kreme has already lined up a series of jumpstarters from the Media Launch in the morning of November 14 to the Blogger Event in the afternoon.

There will also be the VIP Night on the 14th, where a selected few get to try Krispy Kreme products before everyone else.

But what Krispy Kreme fans all over really watch out for is the much-anticipated Krispy Kreme Store Opening Day.

The joy begins with a countdown to the opening of the store. And this officially declares that the Original Glazed doughnuts have arrived for CDO fans to celebrate about.

But die-hard Krispy Kreme fans only know so well that there’s more to Krispy Kreme than just opening a store.

The lucky first customer in line will get the Golden Ticket. That’s a year- long supply of Original Glazed doughnuts and Signature Coffee!

The joy does not stop there. For the 2nd customer, Krispy Kreme will be sharing a silver ticket. This entitles the customer 6 months supply of Original Glazed doughnuts and Signature Coffee. The 3rd customer gets a 3- month supply of the same doughnuts and coffee. The 4th to 100th customer also gets a treat in the form of a month’s supply of Original Glazed doughnuts! Drive-thru customers get to enjoy the same treats from Krispy Kreme, too.

So get ready, CDO and save the date. Get your hands on your favourite doughnuts, and be part of the grand opening on November 15. See you there!

Rebuilding The Country Through Franchising

Written by: Ivy

Fri, 11 Jul 2014 13:00

By: Mr. Franklin Go
President (Philippine Franchise Association)

.. Moving forward, PFA and its members will be continually working together in helping rebuild communities and generate livelihood and employment opportunities in the affected regions.”


The series of calamities that recently hit the country struck the very heart of the Filipino nation because of hundreds of thousands of families displaced, the thousands of lives lost and billions of properties destroyed. But with the overwhelming show of concern and support, both from local and international agencies, signs of life and normalcy in the affected regions are beginning to be felt a week after those devastating disasters.

That’s the indomitable spirit of us Filipinos. We have the tenacity to withstand even the most daunting of life’s challenges. But what breathes life during difficult times is the ability of Filipinos to nurture the bayanihan tradition. The outpouring of support from across all sectors of society brings hope. The quick response from the international community encourages us even more to do the extra mile to serve and help.

I laud the PFA members who are always willing to reach out to those in need, in whatever means possible. I will just mention some but I am sure many of us in the sector did a lot of humanitarian efforts to help the calamity victims.

The Generics Pharmacy (TGP), Gamot Publiko and Generika Drugstore donated medicines coursed thru various partners and civic groups such as ABS CBN Sagip Kapamilya Foundation, Philippine Business for Social Progress (PBSP) and PLDT’s Bossing Ako in addition to the cash and kind contributed by their employees and franchisees.

Over the last two weeks, Philippine Seven Corporation (7-11) has donated 50 tons of food or 300,000 meals to private airlift efforts and has also been collaborating with the Department of Social Welfare and Development (DSWD) by feeding volunteers and opening its stores for donations.

Wendy’s, aside from donating funds and relief goods thru the Philippine Red Cross, has ongoing marketing efforts where half of the proceeds of purchases of its beverage products will go to Yolanda victims while Julie’s Bakeshop conducted supplementary feeding program through the DSWD and doled out over five thousand packs of goods. Waffle Time decided to forgo its annual Christmas party and instead pooled resources to pack relief goods which were distributed to more than 2000 households of several barangays in Iloilo and Antique.

For its part, Goldilocks donated food products as well as other relief goods thru the Philippine Red Cross. The company’s staff and crew were able to pool donations from among themselves and helped their counterparts in the Visayas group. More efforts are being undertaken to help its affected branches fix their logistics to be able to resume normal operations.

Max’s Group of Companies, the corporation behind Max’s Restaurant, Krispy Kreme Philippines, Jamba Juice and Max’s Corner Bakery, through its “HOPE” campaign is working in partnership with the Philippine Red Cross in creating public awareness on how help can be efficiently and urgently channelled to the victims.

Francorp Philippines has initiated “Franchise Jobs Exchange” so that its clients can post their job openings, which are then passed on to various Yolanda related media sites.

Blims Fine Furniture had its auction sale as part of its efforts to help Yolanda victims while in a similar effort, Seaoil organized “Partners for a Cause: Donation and Auction in Action for Typhoon Yolanda Survivors”, donated Php 1Mln worth of gasoline coursed thru ABS-CBN Foundation, and utilized Seaoil gasoline stations as drop off points for relief goods.

Islands Souvenirs in partnership with Gawad Kalinga and LH Foundation launched “Roof for Relief”, which will provide roofs to more than 5,000 families in the affected areas while Bibingkinitan, through its “Help Is On The Way” project has been able to gather over 30 tons of assorted relief goods for the calamity victims.And Bench, through the efforts of Representative Lucy Torres-Gomez, donated the entire merchandise of its Ormoc branch to charity.

I am sure there are many other creative ways of showing support. But let it be said that any kind of help, big or small, with catastrophes of this magnitude, counts. Again, thank you.

But beyond the relief operations are programs that are geared towards rehabilitation, reconstruction and recovery for communities to get back on their own feet. That’s the bigger challenge now.

Moving forward, PFA and its members will be continually working together in helping rebuild communities and generate livelihood and employment opportunities in the affected regions.

In the long term, PFA will carry on the productive pioneering efforts that it has undertaken and will constantly innovate to better serve the members, the franchise sector and ultimately, the common good of us all. PFA therefore, will continue to provide more responsive programs that are attuned to the needs of the times.

With the election of the new set of PFA Board of Trustees and Officers for 2013-2015, I am optimistic that this new leadership will fulfill the mandate.

PFA will continue to assist micro, small and medium enterprises (MSMEs), including the development of incubation centers where highly franchiseable concepts can be introduced to the mainstream market. PFA will continue towards this direction because I believe that MSMEs are the very backbone in any economy.

Programs that will penetrate untapped yet economically viable areas in the countryside will consistently be pursued. Noteworthy is PFA’s drive to support the growth of MSMEs through the franchise roadshows in the countryside. This brings closer to the regions the benefits of franchising that will eventually create an entrepreneurial mindset among our countrymen. The viability of this approach has been prompting PFA to ceaselessly build stronger platforms as springboard for the expansion of members to regional markets.

Another enterprising initiative that would likely spur franchise development is the establishment of more focused business networking forums or venues for business matching that forge business partnerships between and among local entrepreneurs and foreign businesses interested in franchising.

I am confident that the ripple effects of these initiatives to help the country towards recovery will be far reaching.

In the meantime, may the spirit of bayanihan continue to thrive and dwell in our hearts!

See also here

BPI Family Ka-Negosyo Banners Grandslam Year

Written by: Ivy

Fri, 11 Jul 2014 13:19

BPI Family Savings Bank continues to set itself apart from other financial institutions through its efforts and commitment that make it easy for micro, small, and medium enterprises (MSMEs) to start and expand their businesses. Celebrating achievements over the years has strengthened the bank’s reputation as the country’s preferred bank among entrepreneurs.

The Bank’s Ka-Negosyo Franchising Loan won the Chairman’s Award that was conferred by the Philippine Franchise Association (PFA) during the 12th Franchise Excellence Awards. In partnership with the Department of Trade and Industry (DTI) and in cooperation with the Philippine Retailers Association (PRA) and the Philippine Chamber of Commerce and Industry (PCCI), PFA honors the best in the Philippine franchising sector, including industry partners in banking, telecommunications, and other relevant industries.

The tandem of BPI Family Savings Bank and its mother bank, BPI, also registered a strong three-peat victory bagging the Best SME Bank Award from Alpha Southeast Asia Magazine, a monthly magazine tackling topics about investment banking and capital markets. It is published for investment, asset and fund management companies in Asia.

BPI Family, together with BPI, was likewise awarded with the Gold Medal Award for Over-All Bank Reputation by the Hong Kong based specialist business research agency, Radar Global. The bank bested other financial institutions in the country primarily based on favorable client response. Radar Global interviewed SME leaders and finance managers in Metro Manila where majority lauded the bank’s initiatives in supporting MSMEs.

The Bank was also honored with the Franchise Cornerstone Award at the recently held 12th Filipino Franchise Show. Led by the Association of Filipino Franchisers, Inc., the award recognizes individuals and corporations that made a significant impact in the Philippine franchising industry.

“We at BPI Family extend our sincerest gratitude to our partners and clients who continuously believe and trust us. Rest assured that we will continue to provide relevant products and services to address the various needs of our clients and to set the trend in SME Banking,” shares BPI Family President TG Limcaoco.

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