Department of Trade and Industry (DTI) Franchising Requirements and Rules

So what are the different and new DTI (Department of Trade and Industry) rules in business franchising in the Philippines? Below are a few facts I was able to get a hold on to by visiting the DTI website at dti.gov.ph/.


Today, the DTI is already requiring all franchisors to provide their franchisee applicants with Franchise Disclosure Information. I have listed them all below.

The following is required by DTI for the FDI documentation

1. Business address, email address, internet home page / website, fax numbers and other Contact details.
2. Copy of the DTI or SEC Registration Cover page
3. Parent companies and affiliates, if any, and their respective description of their qualifications and background, ownership of interest and references.
4. Name of the Board Directors and officers with a brief description of their qualifications and background, ownership of interest and references and background of Franchise Manager.
5. The contact number and business location of existing Franchisees
6. Executed promotional / marketing materials
7. Description of the business concept, which includes brand image, brand personality, unique selling proposition, target market, mission and mission
8. Basic Information on training, commercial and / or technical assistance
9. Certificate that the Franchisor is a member in good standing of any Franchisor Association and that the Franchisor has no pending administrative, civil or criminal case (e.g. FIFA Certificate)
10. Declaration of the initial fee, amount that will be collected and services covering these fees
11. Training that will be provided, number of persons, how long and training modules
12. Numbers of years Company has operated and number of years it has franchised and number of years it has franchised with corresponding numbers of company owned branches and franchised branches
13. Copy of Memorandum of Agreement and Franchise Agreement
14. Full disclosure of the financial requirements of the franchise business and expected P&L
15. A provision that requires the franchise applicant to seek adequate legal and financial counsel before signing the Franchise Agreement
16. Mechanism for dispute resolution
17. Copy of the Trademark or Trademark application