Franchising is one of the more popular modes of going into business in the Philippines, whether small, medium sized, or large. They are easy to set up and the franchised business has a built-in support system, and some goodwill attached to it. Because almost all franchise agreements involve a bundle of intellectual property rights, prior to January 1 1998, registration of this type of agreement was mandatory. After that date, registration became voluntary and enforceable in the Philippines, provided it complied with the provisions of the IP Code. The signatories to the registered agreement are certainly the real parties in interest, but in Pepsico Inc doing business in the name and style Pepsico Restaurants International v Emerald Pizza Inc (GR No 153059) promulgated by the Supreme Court on August 14 2007, the Court declared that Pepsico Inc, who was not a party to the franchise agreement, was a real party in interest. The case facts are as follows: