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FranchiseTalk: 10 franchises with no (or low) franchise fees and royalties

Updated: Aug 22, 2020

One of the reasons why aspiring franchisees shy away from sealing the deal with their franchise investments is the fear of exorbitant fees from franchisors. Most professionally developed franchise brands go through a process to determine the right amount of fees to charge – high enough to cover their cost and have a bit of profit; low enough so that the franchisees’ profitability is set just right.

But for would-be franchisees, sometimes it still helps to have franchise brands that offer lower fees upfront. We’ve come up with a list of franchisors who have chosen to waive or lower their franchise fees and royalty fees in order to help their franchisees achieve profitability at a much faster rate. Here are ten franchises that have no (or low) franchise fees and royalty fees. Which one are you eyeing to invest in?

Franchise fee: Starts at Php 100,000 Royalty fee: None

This quality (and quirky!) paper goods store from Singapore is bringing back the joy and beauty of writing to the Philippines. From lined school notebooks to high-grade scrap-booking materials, and even nifty writing implements, The Paper Stone has got it all—in lively and creative designs. Franchise packages include retail kiosks, in-line stores and full stores .

Franchise fee: None

Royalty fee: None

When one thinks of world-class recliners, one can only think of La-Z-Boy. Considered the number one recliner brand in the US, La-Z-Boy Gallery has since found its way in the Philippines through dealership, distributorship and franchise offerings. Aside from the waived standard fees, a La-Z-Boy franchisee will also get exclusive rights to a franchise territory. Consider being a part of a world-renowned recliner brand.

Franchise fee: None

Perhaps the most widely-recognized Belgian waffle franchise in the country today, Famous Belgian Waffles was very successful in tapping the mass market through its affordable price points. It offers crispy and piping-hot waffles with premium fillings, coupled with some hot coffee or chocolate. Franchise packages include carts, kiosks and counters.

Franchise fee: None

H2O Life Source, the leading water specialist in Southeast Asia, now wants to redefine the standards of drinking water in the Philippines. Its patented system produces pure and mineralized drinking water. H2O Life Source water refilling stations also utilize green technology, which lessens water wastage and electricity consumption. Franchise packages include a basic counter, an in-line store and a full store with showroom.

Franchise fee: Php 168,000 (updated as of February 2017)

Seriously Addictive Mathematics (SAM) is a mathematics education franchise from Singapore. Aside from an outstanding mathematics curriculum, SAM boasts of a holistic educational program which imparts skills such as critical thinking, logical reasoning and situational word problems, among others, to children through visual and tactile drills and practices.

Franchise fee: Starts at Php 99,000

Johann Coffee & Beverages is a relatively new franchise concept in the market. It is driven by the mission to make hand-crafted coffee and beverages within reach of every Filipino. Franchise packages can come in the form of coffee kiosks (with or without a built-in espresso machine), a mobile coffee truck and a full store.

Franchise fee: None

Royalty fee: None

This unique franchise concept is the country's first fully-automated, stand-alone payment center. Touchpay takes payments for over a hundred merchants, including those in utilities, telecommunications, ticketing, and insurance, among others. It is open 24/7, and offers real-time and secure information about your payment transactions.

Franchise fee: Php 120,000

Citrus Zone is also another newcomer in the franchise market. Founded in 2015, Citrus Zone is a refreshments kiosk concept which aims to promote healthy living by offering freshly-pressed juices, especially lemonade and other citrus-based beverages.

Franchise fee: Php 150,000

Royalty fee: 1 percent (though the franchisor has never collected this)

The name to beat in generics medicine retail, The Generics Pharmacy, has grown to more than 1,800 branches since it started franchising in 2007. Known for making quality and affordable generic medicine accessible to more Filipinos, The Generics Pharmacy's franchise system is driven by its advocacy of social responsibility both to its consumers and its franchisees. You can start your own The Generics Pharmacy on just 15 square meters of store space.

Franchise fee: Php 95,000

While Inihauz opened in 2003, this “roast specialist” only started franchising in 2014. Inihauz is known for its chili roast chicken, lechon belly and boneless bangus, all of which are favorite take-home meal items for Filipino families. Aside from having affordable price points, Inihauz boasts of having unique roast flavors culled from family recipes.

Of course, choosing the right franchise should not just be about fees alone, it should be a combination of a unique concept, a strong franchise system and looking at the overall profitability of the business.

To know more about affordable and reputable franchise brands, join our How to Invest in the Right Franchise Seminar - for schedules and registration, click here.

Contact U-Franchise Sales and Management at (02) 634-0586, (+63917) 881.69.99 or for more details.

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