Want a FamilyMart franchise? It starts at P4M

MANILA, Philippines – Convenience store chain FamilyMart announced on Wednesday, September 24, that its starting franchising package is a minimum of P4 million ($89,857.37*).

The Japan-based convenience store began operating in the Philippines only more than a year ago – in April 2013 – when it opened its first store at Glorietta 3 in Makati City.

In August 2014, FamilyMart announced that it would be franchising out its convenience stores to accelerate its expansion in the Philippines.

Franchisees may opt to loan the capital through the Bank of the Philippine Island’s Ka-Negosyo franchising loan packages, payable within 5 years with an interest rate of 12% for 3 years; 10% for 2 years; and 9% for 1 year.

FamilyMart, which operates locally through a joint venture firm by SSI Group Inc. and Ayala Land Inc., also plans to raise capital through an initial public offering (IPO).

“We’re hopeful that we can do it (IPO) the soonest possible time. (But) I don’t think we’re going to make it by October,” Philippine FamilyMart CVS, Inc. president Anton Huang said.

Ripe for expansion

FamilyMart’s aggressive expansion in the Philippines has turned it into a formidable competitor of Ministop and 7-Eleven 24-hour convenience stores.

Eduardo Paredes, Philippine FamilyMart CVS, Inc. general manager said expanding outside Metro Manila is prompted by their own market study.

FamilyMart eyes to put up stores in Cebu, Davao, and Iloilo next year as part of their business plan to open 500 stories in the country by 2018. 

There are currently 65 FamilyMart branches in Metro Manila, and the convenience store chain aims to stretch the figure to 100 by the end of the year, Huang said.

“We’re pretty confident that we’ll be able to hit that business plan. To exceed it, I think it’s dependent on different factors. As of today, based on 18 months we’ve been in our operation, we’ve met our business plan and we’re quite happy with the way things developed,” Huang added.

Paredes added that FamilyMarket spends 10% more than what its competitors spend for the store’s “look and feel.”

“We have the same market as any convenience store does. We said that we could afford something better to give to the Filipino consumers. So in the design, in the assortment, in the ambience, we just made it a little better. With quality, with value, [customers] keep coming back,” Paredes pointed out.

In 2012, the Wall Street Journal said shoppers in the Philippines had fewer convenience stores compared to other countries in Asia. There was one convenience store per 40,917 people in the same period, compared to South Korea, where one convenience store served 2,060 people. – Rappler.com

($1 = P44.51)