An operating guidelines for franchising business is being formulated by the Department of Trade and Industry (DTI) and the private sector to promote best practices and to protect entrepreneurs from pseudo-franchises in light of the mushrooming franchise concepts in the country.

Elizabeth Pardo-Orbeta, president of the Philippine Franchising Association (PFA) and Wendy’s Philippines Corp., told reporters at Wednesday’s opening of the 18th Philippine International Franchise Conference that the industry would to police their own ranks.

“But, this time we are working with the DTI to give more teeth to the implementation of rules in the franchising business,” Orbeta said.

Ma. Alegria Sibal-Limjoco, vice chair of PFA, also said that PFA has its own existing Code of Ethics and Fair Franchising Standards that they are sharing with the government.

Limjoco cited of pseudo franchisors that are out to victimize the hard earned money of aspiring entrepreneurs.

Limjoco noted as unfortunate the fate of some 300 franchisees, whose licenses were not renewed and their offices closed.

Samie Lim, known as the father of Philippine franchising, also said that one way to know that the franchise is legitimate is a franchisor’s membership with the PFA.

PFA is conducting a three-day seminar on franchising business.

Bureau of Trade Regulation and Consumer Protection director Victorio Mario Dimagiba, who read DTI Secretary Gregory Domingo’s speech for the conference, also said the operating guideline for franchising business is being formulated with inputs from the private sector.

The DTI is also conducting franchising seminars in partnership with the PFA. The DTI is expected to come up with a Department Order governing the operations of franchise business in the country.

Dimagiba quoted a study by the University of Asia and the Pacific that the franchise concepts in the country have ballooned to over 1,000 in the past ten years. Of this number, 68 percent franchises are homegrown.