Max’s Group Builds Partnerships that Fuel Growth



Since Max’s Group, Inc. (MGI) opened its flagship brand, Max’s Restaurant, for franchising in 1998, it has remained to be an attractive business model for the company, and a rewarding brand for its partners.

In 2017 alone, a total of 40 franchise agreements were awarded across its brands. 15 of these were cross-franchise deals, which meant that existing partners of the company have decided to expand their business by opening at least one more store of another brand from the group. Another 14 were with current franchisees who have signed up to add more branches of the existing brands they manage. 11 were new partners have come onboard to start their own franchise businesses.

The group’s appeal as a franchisor speaks volumes about its credibility, relevance, and expertise. As the franchising industry continues to be in an upward trend with an estimated growth of 30% in 2018 according to a recent interview with the Philippine Franchise Association (PFA), food outlets will continue to be the most popular franchise type. MGI is poised to capitalize on this movement to drive expansion and improve accessibility to customers.

MGI’s mission of building loved brands is one that is echoed by its partners. In fact, it was brand love that made Atty. Diane Garcia decide to sign with the brand. “Our family wanted to venture into the food industry but we knew nothing about that business so we just decided to get a franchise. At least with that model, everything is already set up and we can leverage on the franchisor’s expertise,” recalls Atty. Garcia.

She adds, “Our first franchised brand was Max’s Restaurant, way back in 1998. We were one of the first five franchisees of the brand, and we decided to go for it because it is a household name. Everybody knows Max’s, The House That Fried Chicken Built. It has a strong recall across demographics.”

This brand love was also demonstrated by the way the company operates its business. Its responsive and quality products, compelling marketing campaigns, regular training programs, and ongoing support services ensure that the partnership will flourish and benefit both parties. An alignment on values is crucial as well to secure success.

“I am very satisfied with the company‘s culture when it comes to all aspects of the brand. They are able to address all that is necessary for a company to succeed. Product safety is a priority for them. While it does require a higher initial investment, it pays for itself in the end because customers are delighted and they do come back. They also value their employees by providing a good working environment and opportunities for career development. These are just some of the things that we believe in and something we practice in our own company as well,” shares Atty. Garcia.

20 years after the Garcias first signed with MGI, they are now one of the group’s biggest partners with a total of 12 stores running – three Max’s Restaurant branches in Luzon and one in Vancouver, and five Pancake House stores in the Greater Manila Area – and three more slated to open this year.

“Two decades into the partnership and we're still very happy with our decision to franchise with them all those years ago. Like any commercial venture, we experience the usual business bumps and trials so it’s not always perfect but it’s always resolved. That’s what matters. Our mutually beneficial relationship is built on trust and confidence, and I believe that all partnerships should have a foundation like this," says Atty. Garcia.

MGI notes that its commitment to prioritizing customer satisfaction and upholding the highest standards of product and service quality strengthens its relationships with its franchisees.

“MGI’s strength comes from the trust we build with our franchisees whom we consider as valued partners. We look forward to growing with them and bringing onboard more like-minded entrepreneurs as we realize our vision of building loved brands,” concludes Ariel P. Fermin, MGI Group Chief Operating Officer.

MGI is strategically embarking on a multi-brand franchising model to fuel expansion and ensure an active presence in key geographies. The group plans to roll out 80 to 90 new outlets in 2018 primarily through franchising its core brands. This initiative is expected to accelerate revenue contribution from recurring fee-based income, which generally represent maximized profit flow-through, and will leverage on Max’s Group’s brand equity, operational expertise, and scale to propel store network expansion.

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