In the heart of Southeast Asia, Malaysia offers a promising landscape for individuals seeking to embark on the exhilarating journey of franchising. If you’re considering venturing into the world of franchising in Malaysia, this comprehensive guide will take you through the essential steps how to set up a franchise business. From understanding the concept of franchising to navigating the regulations and joining forces with the Malaysia Franchise Association (MFA), we’ve got you covered. Let’s get started!
A franchise business is a unique arrangement where an established company (franchisor) grants individuals or groups (franchisees) the rights to operate their own businesses under the franchisor’s brand and business model. In return, franchisees pay fees and royalties to the franchisor for this privilege, along with receiving ongoing support.
The key benefits of franchising include leveraging an established brand and business model, reducing startup risks, and accessing franchisor support. However, franchisees must adhere to franchisor standards, pay various fees, and sign a franchise agreement. This business model is prevalent in industries like fast food, retail, and hospitality, offering entrepreneurs the chance to own a business while benefiting from the franchisor’s resources and reputation.
The Malaysia Franchise Association (MFA) plays a pivotal role in fostering the growth of franchising in Malaysia. Established in 1994, MFA was created to support the government’s initiative to promote entrepreneurship through franchising. This timely formation aims to create an environment conducive to the expansion of franchising in the country.
MFA functions as a valuable resource hub for current and aspiring franchisors and franchisees, as well as for the media and the public. Its membership composition is diverse, encompassing franchisors, potential franchisors, master franchisees, aspiring master franchisees, government agencies, banks, accounting firms, franchise consultants, legal professionals, and franchise suppliers, all working together under one roof.
It’s noteworthy that MFA holds a unique distinction as the only association in Malaysia recognised by both the World Franchise Council (WFC) and the Asian Pacific Franchise Confederation (APFC). This recognition underscores its significance in the international franchising community and solidifies its role as a key player in promoting and regulating franchising activities in Malaysia.
