Print shops and other firms offering business services to small and medium size offices are flourishing. The services that small printing and graphic shops or delivery and messengerial services offer are more cost-efficient for the SMEs than maintaining a permanent printing office or a delivery department. For many offices and building administrators, hiring a cafeteria concessionaire or a catering service is also cost-efficient and relieves them of tedious work that occupies productive time. In the Philippines, a number of franchisees are young, creative individuals or groups with a special knack for marketing. They include new entrepreneurs and second-generation owners of family businesses.
Royalties depend on the agreement between the parties.
Higher operating costs such as rent and imported goods, however, still confront franchise operators. Many successful companies in the market that are maintaining or expanding market share are recipients of such support from their foreign principal. Foreign franchises compete with each other and with homegrown franchises that have improved through the years. Aside from franchising food establishments, local businessmen have set up service shops in printing, graphics, delivery, messengerial, laundry, and car rental. Because local franchises do not have to pay franchise fees and royalties, they can offer the same services as foreign franchises at lower costs, again, a plus factor for SMEs.