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Cebu City, Philippines - Theirs is a unique story of franchising.
From franchisees of a gourmet pizza business, couple Angel and Rosario ?Jingjing? Farrarons has become franchisors themselves with the able partnership of three family members.
For a couple of years, Jingjing said she developed an interest in making pizza, mixing ingredients and experimenting on sauces just to get perfect recipes.
Little did she know that her interest will take her to greater heights as she co-owns Chez André, a homegrown pizza and pasta business that was put up by a retired chef, a Frenchman, who lives in Negros Oriental.
?Around 2004, my husband and I found this restaurant in Mandaue. I wanted to eat pizza that time, so we went inside. I was impressed by the food and the setting. I got even more interested when I was told that the business was open for franchise,? she said.
When she learned that the Mandaue restaurant was also a franchise, she asked the number of the franchisor. She got in touch with the franchisor, Joel Andre Estoursy, who was in Ormoc City, Leyte, at that time and was putting up another Chez André restaurant.
Estoursy, who is married to a Filipina, is fond of traveling around the country.
He would also put up a Chez Andre restaurant in most of the places he would stay. He would later sell this to interested franchisees once he would decide to move to another place again.
Jingjing Farrarons told Estoursy about her interest to apply for a franchise.
?He was very frank. He told me to come and see him in Ormoc. He told me directly that there should be commitment on my part nga dili ni sya duwa-duwa. He also wanted to see the place where the store will be set-up,? she said.
After the talk with Estoursy, Jingjing set aside her doubts and fears and proceeded to prepare proposed site for Estoursy?s inspection.
Estoursy approved the location at the Talisay South Central Market.
Before the year ended, the couple was running the business gaining loyal customers with their freshly-made products.
?We started without a structured system. No inventory system, wala tanan. My husband and I set up the system. We ordered from the branch once in a while to check on quality,? Jingjing said.
Jingjing, a Mass Communication graduate from the University of the Philippines, relied on her earlier experiences in helping out with family-owned grocery and convenience stores.
Her husband, a Computer Science graduate, was her closest ally in making the system work.
Offer
The business was running well for the couple until Estoursy called up in 2006 and offered to sell them the entire business.
?He decided to have us as the buyer because he saw how we run the branch. But I was scared. It was already a big investment so we called up family members and discussed it,? she told Cebu Daily News.
The family talk led to the creation of Abrazo Corp. in early 2007 - a corporation made up of the Farraron couple and their relatives Enrique and Manuel Vicente Farrarons and Marcellius Thomas Aleguiojo Jr.
The couple with their partners accepted Estoursy?s offer and took over the business.
?When we took over, they were eight operating branches. We are very hands-on in the business. We build up the system in the Talisay franchise to establish control because anything in the kitchen can be brought home,? Aleguiojo said.
On the first year they were ?clearing the house? from unproductive practices and inefficient systems, Alequiojo said.
They also worked on creating a logo, tagline and training system for the employees.
The company has established three company-owned stores in Basak Pardo, F. Ramos Street and Talamban as part of constantly improving their system.
?We cannot update our franchisees well on how to improve the business if we don?t have company-owned stores,? he said.
The company tapped the services of RK Franchising Consultancy to help them develop a franchising system.
At present, Chez André has 13 operating branches in Cebu, Samar, Tacloban, Ormoc and Makati.
Aleguiojo said that on their second year, the public will see Chez Andre to be visible in areas where people frequently visit.
Asked if he is worried about the competition, he said: ?As long as you have a good brand, you will do good. We have competitive prices and our products are fresh. So we are very confident with the product. That?s brand differentiation.?
They are also constantly developing new products aside from the current line of pizza, pasta and salads.
With a good mix of loyal clients ranging from students to tourists, Jingjing said they do not find it hard to get good market share.
Banking on the family-oriented nature of the business, the Farrarons are positive that more people will be interested to get a franchise of the store.
