How to Set up A Franchise Business with The Businesses Available in Malaysia #StartFranchise
StartFranchise.id - Southeast Asia countries have become one of the major places for business to open and grow with the market keeps demanding more and more from international brands. Malaysia has become one of the growing markets in Southeast Asia. With a supportive legal framework and the demand for more and more international products keep rising, Malaysia offers a fertile ground for entrepreneurs who want to start a business with lower risks and higher chances of success.
But, starting a business from ground zero could take a lot of time and upcoming entrepreneurs might miss the window of consumer growth in Malaysia. That is where franchise comes in and will help the upcoming entrepreneurs to jump into the business. With famous worldwide names like McDonald’s, KFC, and 7-Eleven to local yet popular names like Tealive, Nelson’s and Daily Fresh can become their platform to join the business in their favoured sector. This article will help all the upcoming entrepreneurs on how to set up a franchise business in Malaysia along with the businesses available for them to join directly.
Why Franchise Business in Malaysia is Promising
Not only does Malaysia is able to provide the strong demand from the market, Malaysia also has multiple reasons why it is promising to open a franchise business in Malaysia :
Clear regulations under the Franchise Act 1998 give structure and transparency to both franchisors and franchisees.
Proven business models reduce the risks compared to starting a business from scratch.
Scalable opportunities as Malaysia’s urban and suburban areas continue to expand.
Steps to Set up a Franchise Business in Malaysia
Setting up a franchise business in Malaysia involves more than just choosing a brand and paying for the license and letting it all flow. There are key steps needed to be done to ensure the franchise business will run for a long time :
Choose the right franchise brand
Future entrepreneurs need to decide which sector that they want to enter. Popular options include food & beverage, retail, and services. Brands like Tealive, Daily Fresh, and Nelson’s are accessible local choices, while McDonald’s or KFC require larger investments but come with global brand power. Choosing the business does not necessarily choose the biggest one, but it should be choosing the business that the entrepreneur actually wants to run and is in line with their vision and mission.Plan the budget
Franchise costs vary widely with the capital needed by the franchisee for each product. The smaller local franchises at around RM 15,000, while mid-sized brands like Daily Fresh may require RM 85,000 or more. On the higher end, international giants such as McDonald’s can go up to RM 3.5 million. Alongside with the capital needed, future franchisees need to also calculate the budget for the franchise fee, preparing the outlet and also some franchises may require a royalty fee.Research and survey the market
After choosing the business and planning the budget, future franchisees need to look at the consumer behavior in their target location. Visit existing outlets, attend franchise expos, and talk to current franchisees to understand profitability and challenges that might come when joining the franchise business.Create a business plan
Future franchisees need to outline their mission, financial projections, staffing needs, and marketing approach. A solid plan will also help if future franchisees need financing support from banks or investors so they would not go bankrupt before starting the business.Understand the legal requirements
Malaysia’s Franchise Act 1998 requires franchisors and franchisees to register with the Registrar of Franchises. Future franchisees need to work with the local legal advisors to review contracts, royalty terms, and territorial rights before signing.Launch and operate the business
After doing all the previous steps, franchisees can open their outlet and focus on the operations everyday to meet the standards given by the franchisor and always try to improve.
Franchise Business Opportunities Available in Malaysia
After understanding how to set up a franchise, future entrepreneurs can choose from one of these brands to start their step one in setting up their franchise business. Malaysia’s franchise market is diverse, offering everything from international giants to homegrown local favorites. Some of the most notable options include:
McDonald’s Malaysia : As one of the most recognized global brands, the investment is substantial, often reaching millions of RM. However, with their international presence from other McDonald’s, it comes with powerful brand recognition, proven systems, and consistent demand to ensure profit in the long run.
KFC Malaysia : Another strong international franchise with decades of presence in Malaysia. The required investment is high but backed by comprehensive franchisor support as The Colonel has a strong presence in the Southeast Asia region with most of them love fried chicken.
Tealive : A successful Malaysian bubble tea brand that has expanded internationally. Franchise investments typically range from RM250,000 – RM500,000, making it more accessible than fast-food giants.
Daily Fresh : Specializing in snacks like waffles, sweet corn, and beverages, Daily Fresh provides affordable entry points with investment starting at around RM100,000 – RM250,000.
Nelson’s Corn : Another local franchise that focuses on corn-based products, often requiring around RM100,000 to start. It’s popular among small-scale investors who want to tap into the F&B market.
These opportunities show the flexibility of Malaysia’s franchise ecosystem. Entrepreneurs can choose between high-capital, globally established brands or more affordable, local franchises that offer steady growth potential and connect with the market more as these local brands have a special place in the market’s heart.
How to set up a franchise business in Malaysia ultimately comes down to many crucial steps. Choosing the right brand, preparing the right budget, and understanding the regulatory requirements will be the main points that could help in achieving success in setting up a franchise business in Malaysia. With options ranging from affordable local brands like Nelson’s to established international players like McDonald’s, there is a wide spectrum of opportunities available.
For entrepreneurs who want to minimize risks and maximize potential, the franchise business in Malaysia is not just an option, but it’s also a strong pathway to sustainable growth and a way for them to join the growing market in Malaysia. For those entrepreneurs who want to know more in setting up a franchise or finding out opportunities available internationally, check this out for more information.
