Franchising his/her business does not mean he/she is not successful. It is merely another way to expand his/her business empire. Some people choose to franchise their business, some choose to open stores through their own funding, some choose to ask funding from Venture Capitalist, some choose to go public listing etc.

Well said. Franchising is merely another way in expanding the business empire. Leverage is always the key to business.

I'm seriously interested in Franchising McDonald.

Heard it is around RM3mil (30% have to be equity, the remainder 70% can be debt), got to have a good track record and helps if you have a recommendation from a fellow McDonald owner.

Anyone currently running a McD franchise?

Read the tittle, TS is interested in F & B. and we are talking about F & B here.

Easier said than done. Do you know the failure rate for franchised in Malaysia? Whilst there maybe some truth in the local guy understanding the local market, many a times the local guy does not REALLY understand the business or being a franchisee.

You maybe right about leverage but business is not all about leverage. If the is no mutual understanding about the business, growth, roles that each other play and its ramification, then the symbiosis collapse! Partnership of franchiser and franchisee turns sour.

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Added on March 22, 2010, 10:19 amDo you have RM3mil cash in the Bank?
Where do you intent on opening your outlet or taking over from the principal holder?
Are you willing to commit 1.5year of your life to working in the restaurant without any income from McD?

This post has been edited by DarkNite: Mar 22 2010, 10:21 AM

"Do you have RM3mil cash in the Bank?
Where do you intent on opening your outlet or taking over from the principal holder?
Are you willing to commit 1.5year of your life to working in the restaurant without any income from McD?"


Question 1 I rather not say.

I have a place which I feel would be the right location for a McDonalds. No McDonalds around the area.

"Are you willing to commit 1.5year of your life to working in the restaurant without any income from McD?"
Could you further specify what you mean by the above sentence?

No McD around does not constitute good location. Example in Mid-Valley there are 2 McD outlet. For a McD outlet to be successful you need traffic generator - example like schools, petrol kiosk, LRT/MRT station & hospital.

You need to be in McD training program for about 1.5yrs depending on your capabilities before they let you operate your own outlet. It is a fulltime program and can't delegate or appoint someone to represent you.

It great to have a thread like this.

Let say I have spotted a F & B store oversea and wanted to bring it back home. My questions:
1) Is it compulsory to registered it under Malaysia Franchise Association ?
2) Can I park it under a partnership company or sdn bhd or no need company.

1.To register under MFA is to secure u and your franchaisor. U can suggest them to bring in to malaysia and let u own sole franchaiship in malaysia.

2. Dont know.

MFA is only an association.
It is better to have the legal documents look thru by a Malaysian lawyer and an agreed clause as to who and which country will both of you seek redress in case of dispute.

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Added on March 22, 2010, 7:08 pmDefinately under a Sdn Bhd company, for ease of admin, financial and taxation purpose.


This post has been edited by DarkNite: Mar 22 2010, 07:08 PM

junkeat,

That is funny. The question posted by the particular poster reads "with 500k cash, what franchise can i open? any good suggestion?" Also, the title reads "Franchising businesses". Where did you find the word "F&B" in the context? Do I need to teach you to read?

P.S. Oldtown, Pappa Rich and McDonald's were just examples given by TS, which does not indicate that TS is ONLY interested in F&B. Don't try to turn the story around.

simple.ology,

You will need to apply for a Master Franchise from the franchisor, or find the existing Master Franchisor in Malaysia. You can't just start a franchise brought in from another country because you need a different management company in each country.

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Added on March 22, 2010, 8:40 pmDarkNite,

I was responding directly to your previous question which reads "If the principal owner is successful why then should he franchised his business?"

This post has been edited by Jordy: Mar 22 2010, 08:40 PM

No worries...
Like I said successful business is NOT always about leverage especially where franchising is concern.

BTW
Since this thread is about Franchise Business, anybody know of any franchise in Malaysia that is successful?
Please don't quote JV partnership with the original/direct principal holder, ok?
The answers would be interesting as to where perspective franchisee should park/invest their money in, no?

How bout Secret Recipe?
Has been around for few years and still expanding albeit alil slower.
Expanded to Australia this year IIANM.

"You need to be in McD training program for about 1.5yrs depending on your capabilities before they let you operate your own outlet. It is a fulltime program and can't delegate or appoint someone to represent you."

Darknitez are you serious? This seriously blows.
Do you happened to know whether the training program is after working hours or during the weekends?

I guess a way around it is to be a sleeping partner? Say owning 49% of the franchise and your partner owns 51%?

They started in 1997, and now are also in Singapore, Indonesia, Thailand, China, Philippines and Pakistan. Which or have many outlets are franchised in Malaysia?
I know several successful outlet are own by the founder's family member, does that counts?

It is a fulltime training program as franchisee must successfully complete the training. They have stipulated that the person must be be willing to devote his or her full time and best efforts to the day-to-day operations of the restaurant.
And they also says they do not franchise restaurants to partners or investors. However, they will consider 'sleeping-in-the-same bed or roof' partner aka spouse/family member, provided that one family member is dedicated to running McDonald's on a full time basis.

Nvm..u will realise wat mostly talking here is F & B rather than franchaise other type of business.
Since TS already point out F & B, therefore most of the forummer talk about F & B here. But other type of business is interested by TS or not. We dunno.

Of course title didnt find any word F & B in the context but if u r sincere to read what TS trying to indicate u will understand more.

By the way, as question ask. What shop can be franchaise with 500k ? U didnt answer it by just saying lot can be franchaise even like kindergarden. Please provide accurate answer if u can but just saying other type of business can be franchaise. Your reply in forum more like entertainning more than giving suggestion.

If u know do share info with us. If u dun , please dont entertain or spam the forum just answering like u know.

This post has been edited by junkeat: Mar 23 2010, 09:05 AM

thanks junkeat, darknite and jordy for the advise.

BTW, for 1901, with under 100k you can have your pushcart ready and do your business..... http://www.franchisemecd.gov.my/web/guest/makanan_n

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Added on March 23, 2010, 3:20 pmand other than F&B franchise

convenient store such as 7-11 is also possible...
but you will need to have a store ready/in place ... and the franchise fees is 25,000 or 15% daripada untung kasar yang diperolehi daripada kedai sedia ada..... (but i'm not sure it's per year or per mths.... if per mths then OMG>>>) http://www.franchisemecd.gov.my/web/guest/kedai_c

but for 99 speed mart i think it's slightly cheaper....
http://www.franchisemecd.gov.my/web/guest/kedaikemudahan

This post has been edited by simple.ology: Mar 23 2010, 03:20 PM

1901 under 100k, how long u may have the license ?
I don't suggest 7-11 because KK trying to wipe out 7-11

F&B business is VERY tough. Only 1 of 100 is successful, and this also without taking in the hawker and small food gerai that gone bust. The only people are making money are the second hand kitchen equipment guys

1901 trend is past, more over, most choice spot are already taken.

7-11 is also possible as the 1st 50 franchisee will 'SURE' make money, part of the parent marketing strategy to attract more franchisee. If I'm not mistake their target is 200 or more franchisee. They have to open additional 4000 outlet in 5 years on top of what they are having right now. If the principal play their cards right then nobody can match or compete with them, to the extent that even the hypermarket will view them as a competitor.

junkeat,

If you know me, I do not spam on this forum. Since this thread is talking about franchise businesses, so you should not assume that the thread is only limited to F&B. I will only provide my advice to people who are sincere to accept their mistakes and learn, but by the way you sound, you're not sincere to admit to your own mistake.

If you know more than me, then you should not say that no other F&B businesses can't be franchised with RM500k. I will only tell you what other F&B franchises can be subscribed with RM500k if you are sincere to learn.

I didnt say no other business other than F & B can be franchaise with 500k. We are talking about F & B here. If u have any idea what can be franchaise with 500k even without 500k u should comment it but seems your ego cause read it with flame. Please comment if u know if not dont just reply to spam thead.