YOU CAN'T IGNORE THIS: 2025 Midterm Power Shift and Its Impact on Franchising & SME Post
You Can’t Ignore This: 2025 Midterm Power Shift and Its Impact on Franchising & SMEs
The results of the 2025 Philippine midterm elections have unveiled a broad shift in the country’s political, legislative, and economic outlook. With new senators taking seats in Congress and a massive turnover of local officials—from governors and mayors to barangay captains—the implications for businesses, especially franchises, are significant.
For entrepreneurs, SMEs, and established franchise systems, this political moment isn’t just a headline—it’s a strategic signal. At BFEX (The Business and Franchise Exchange), we help businesses understand and leverage shifts like these. This article breaks down what franchisors and business leaders need to know about navigating this new political era.
Understanding the 2025 Midterm Elections: National and Local Scope
Unlike purely local elections, the 2025 midterms are a hybrid of national and local contests, making their impact especially far-reaching:
At the National Level:
12 new Senators were elected, reshaping the Senate’s stance on economic legislation.
District Representatives and party-list groups now influence national policies on trade, taxation, franchising, and MSME development.
At the Local Level:
Thousands of newly elected governors, mayors, vice mayors, councilors, and barangay leaders now steer decisions on local permits, taxes, infrastructure, and SME support.
This dual shift—top-down policy change and bottom-up implementation power—is what makes the 2025 midterms especially impactful for franchising.
Franchising in Focus: 5 Post-Election Business Realities
1. Policy Reform Momentum Is Building
The new Senate and Congress are expected to prioritize economic modernization, including:
Tax reform updates
Revisions to the CREATE law
Labor market innovation, including digital work models
Expansion of foreign investment laws
These changes may directly affect franchise operations, especially in areas like tax compliance, staffing models, and international brand entry.
2. Local Government Is Becoming More Business-Centric
Cities like Pasig, Iloilo, Cebu, and Valenzuela have retained or elected reform-driven leaders promising digital transformation, transparency, and business-friendly regulations.
For franchisors and investors, this means:
Faster online business permitting
LGU-led infrastructure projects supporting commercial zones
Potential tax holidays or lease subsidies for new branches
3. Localization Is No Longer Optional
Newly elected officials are doubling down on cultural alignment, sustainability, and grassroots development.
Franchises expanding into provincial or rural areas should:
Adjust products or menus to local tastes
Engage in community-building initiatives (e.g., youth employment programs)
Partner with local suppliers or cooperatives
In return, LGUs are more likely to offer endorsements, faster permits, and local promotional support.
4. Compliance and Franchise Law Reform Are Likely
Expect stricter enforcement of:
Franchise registration and documentation
Labor policies and minimum wage requirements
Environmental and waste management regulations
BFEX anticipates more standardized guidelines from both the Department of Trade and Industry (DTI) and local city halls, especially for food, retail, and service franchises.
5. Tech-Driven Expansion Will Be Prioritized
With many LGUs committing to e-governance, businesses that digitize operations—from cashless systems to automated franchise onboarding—will move faster through red tape.
This opens up the playing field for:
Cloud-based POS systems
Digital franchise training platforms
Remote franchise monitoring tools
BFEX Strategic Recommendations: What Franchises Should Do Next
1. Monitor National Policy Shifts
Franchisors should closely track economic and MSME-related bills. Assign someone to follow Senate and House updates related to franchising, foreign investments, labor, and e-commerce.
2. Strengthen LGU Engagement
Franchise development teams should initiate relationships with newly elected officials in their target cities or provinces. LGUs are often more responsive during their first 100 days.
3. Revisit Your Franchise Model
In light of tighter compliance and cultural emphasis, franchises may need to revise:
Their operations manual
Territory plans based on new LGU maps or investment zones
Onboarding procedures to include local community integration
4.Lean Into Digitization
With the rise of online permitting and cashless LGU transactions, now is the time to automate documentation, registration, and training processes for new franchisees.
How BFEX Helps Franchises Navigate Post-Election Changes
At BFEX, we support franchisors and entrepreneurs through times of change by offering:
Franchise Territory Expansion Tools – Evaluate city-level readiness, competition, and LGU friendliness
Regulatory and Legislative Alerts – Stay ahead of national bills and local ordinances
Franchise Broker Academy – Train professionals to match opportunities with viable markets
Legal Compliance Services – Ensure updated manuals, contracts, and permits
We’re also launching the Post-Midterm Business Forum, connecting franchisors with newly elected leaders to align on pro-growth initiatives.
Political Change Is a Business Opportunity—If You’re Ready
The 2025 Philippine midterm elections are not just about governance—they are about economic direction, regulatory certainty, and local empowerment. For franchisors and business owners, this is a moment to act. The next 6 to 12 months will determine which brands scale—and which ones stall.
With BFEX as your partner, you can move forward confidently, fully aligned with both national strategy and local implementation.
Not sure if your business is ready to franchise after the 2025 midterm shift? Take the BFEX Franchise Readiness Scorecard - a quick but powerful tool to assess your brand's expansion potential under the new political economic climate . Its FREE. It's Fast. And it could save you from costly missteps.
Or reach out to our Franchise Strategy Team today at www.bfex.com.ph
