If you are new to entrepreneurship, starting a business from scratch can be daunting, especially if you are risk averse. An alternative to incorporating your own business in Malaysia is to purchase a franchise and set up a company that already has established its brand recognition.
The franchise industry in Malaysia is one to watch. As reported by The Star, it is expected that the franchise sales will increase from RM14.65 billion in 2020 to RM22.66 billion in 2025. The demand for franchise businesses has been slowly increasing, and now is the right time to start your franchise in Malaysia if you have plans to do so.
Best Franchises in Malaysia
There is an abundance of opportunities to buy and set up your own franchise business. Here are some of the best franchises in Malaysia that you can consider:
|Company Name||Industry||Initial Capital & Franchise Fee|
|Tealive||F&B||From RM250k + RM75k franchise fee|
|Boost Juice||F&B||From RM250k + RM65k franchise fee|
|Sakae Sushi||F&B||From USD500k + USD100k franchise fee|
|7-11||Retail||From RM250k + RM100k franchise fee|
|Bonia||Retail||From RM145k + RM20k franchise fee|
|Anytime Fitness||Services||From RM1.2M + USD60k franchise fee|
|Kumon||Services||From RM70k + RM10k franchise fee|
While these are the popular franchises to consider, there are plenty of other businesses across the industries that you can search for.
Here are ways on how you can find the franchise opportunities in Malaysia:
Malaysian Franchise Act
All franchises in Malaysia are governed by the Malaysian Franchise Act 1998. The Franchise Act regulates the franchising industry with regard to the franchise agreements and the official registration for the franchisor and franchisee. Any official franchise advertisements and sale of franchises are also governed by the Act.
Here are some of the terms under the Act:
The full Malaysian Franchise Act can be found here.
Things to Consider Before Starting a Franchise in Malaysia
Before you start a franchise in Malaysia, there are many considerations and questions that you will need to note and ask yourself.
How to Register a Franchise Business in Malaysia
After making the decision to start your franchise in Malaysia, the next step is for you to get it through compliance to operate as a legal entity.
Stage 1: Registration with Registrar of Franchise (ROF)
Depending on whether you are looking to operate a franchise of a local or foreign franchisor, the registration is different.
To register a franchise with the ROF, there is a list of documents that would be required. This is to be submitted by the franchisor and they include:
The process of registering a franchise with the ROF can take between 2 to 6 months.
Stage 2: Registration with Suruhanjaya Syrikat Malaysia (SSM)
All companies in Malaysia are required to register with the SSM. This is to officially operate your franchise and have your names as the shareholders of the company.
We have listed down the process to set up a private limited company in Malaysia in another article – you can read about the process, requirements, and documents needed here.