Greetings, everybody. As one can see, a significant number of franchising businesses is mushrooming all over the cities and towns around Malaysia regardless of the slow economy and also the high franchising fee. Anyone here that owns one or more of this businesses and also to those with information on it are welcome to share with us here.

This post has been edited by Lazy_Kid: Mar 18 2010, 09:23 PM

What information exactly are you referring to? (ie. franchise fee, terms and conditions and etc?)

Well, actually i dont have much info on all this and how the system works. I've search Google for some info and also started this thread in hoping you guys can share and contribute more. Anything related to this topic is welcomed.

This post has been edited by Lazy_Kid: Mar 18 2010, 10:23 PM

well, unless you have 2-3 millions, then consider your self a candidate.
by the time you have 2-3millions, i suggest you go and do investment on property or trust funds.

i think franchise info can be found on their respective website. If they are too lazy to find out, then they should not be doing this.

even though u have enuf badget to open a franchise store, not 100% will be accepted becoz the decision depends on them. exp mcd...damn hard to get the franchise even u got the money

Let me rephrase the question another way. One whose answer is not in the franchiser's website.

If you have some money, and no experience in running a business, is it better to start your own business, or get a franchise?

If you *do* have some experience in running a business, would it still be better to get a franchise?

Of all those franchises out there, which one is the best?

For the purpose of this thread, I define "best" as the biggest profit, possibly ciombined with lower risk, and less work.

Old town ....600k for 5 years + u must own the corner shop lot
Papa rich ....1.2m for 5 years
Station 1 ....1m for 5 years
Hailam Kopitiam 450k (half year ago)

with 500k cash, what franchise can i open? any good suggestion?

Suggest u start 2 - 3 different business also dun advise u open a franchaise.

Don't put all egg into a basket.

junkeat,

With such limited cash, I would suggest otherwise. Newbies should start venturing into business through franchising first (as no experience is needed). To start 2-3 different businesses with no experience is suicide.

What is your interest and experience?

Of course invest according to your experience field or venture or partnership with your fren. U cant manage all in 1 time.

Besides, u cant franchaise with 500k.

@Lazy_Kid

actually, my friends and i was on track/plan to involve in this kind of business..
hope it will be a reality in future..

i try to share some related information here..

u can try to check the info frm malaysian finance ascociation frm this website.
www.mfa.org.my/

they also provide you basic knowledge by attend the seminar, just cost RM20..I plan to join this seminar but until this time i cant find the suitable time..

u also can try get information mecd frm this website..
http://www.franchisemecd.gov.my/web/guest/home

there are list of franchisor, and detail of fee n etc over here..

thats all i can share..

This post has been edited by sazuwi: Mar 21 2010, 07:02 PM

junkeat,

Not everyone will succeed doing business in their own field. You NEED to have the experience in running a business. As for a newbie, I will NOT encourage partnerships for the same reason as above.

Can't franchise with RM500,000? I think you need to do a little research before making the conclusion.

I do agree not everyone will succeed doing business in their own field but better than doing business without your specialist.

Situation A. An accountant wan to start up a legal firm.
Situation B. An accountant wan to start up an accounting firm.

Which 1 do u think have the higher possibility of success where doing business in both field ?

If u can manage 2 or more business at 1 time at the beginning stage then i dont think partnership is require. But if u cant seems u have no choice other than doing so.

Mind share wat kind of coffee house such as papa rich, old town that can franchaise with 500k ?

If the principal owner is successful why then should he franchised his business?

Because, if the principal owner is located in KL and want to expand his business nationwide.. Who is he going to trust to handle money in Penang branch, KEdah branch, resources/planing ..etc. And who else is better understanding the local market, then the local himself.

Easiest way out is to franchise... and earn constant income , initial income(ppl sign up with him, he already earn tons) and monthly income( income base on gross profit, rugi oso have to pay the principal owner).

Got it?

Try to dive what things are you good in ?could be cooking?designing ?or anything that you quite fonds of,and make sure that you're master with ur field.and btw,in my opinions,opening a restaurant would be good if you;re good in cooking with friends recomendations.thats among the best business that can last for quite some time,for electrical stuffs or cars,that's very hard,coz not everyone can afford it everyday.

junkeat,

Read up more about franchising and learn the meaning of it. If one needs field experience in the industry, why should he/she subscribe to the franchise?

By the way, not only F&B business can be franchised. ANY niche and unique business can be franchised. Haven't heard of franchised kindergartens? What about franchised salons? Or even franchised car rental business? I have advised you to read up to expand your knowledge.

DarkNite,

Do you know how to run a successful business in the first place? Successful people USE leverage, while average people work like a COW and never successful. That is why not everybody can be successful because they have average minds.

Keep in mind that franchising is NOT selling off a business.

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.

stop making a fool out of urself

please people, calm down.... don't fight.... hehe...

anyway, there another franchise which is possible.....
"drum roll...." message centre.....!!!! hehe.... it's the alternative business i guess..... but must be prepared that you will have to pay duit kopi if there's any hanky-panky stuff inside.....

Huh???

darknite,

you know what i mean....

Dont want to stir up the heated arguments, but it really spoils the fun here. Its a good discussion on franchise business, nevermind F&B or not, its still a good topic.

junkeat, let Jordy do his work. He contributed alot in this forum alongside cherroy, dreamer101 etc.

Anyway, when talk about franchise, we tend to think of McD, KFC... 7-11 etc. So, its an eye-opener to see other businesses.

wow, just by asking a question, it spark an endless debate. anyway, initially my franchise idea is F&B, eg. Subway. Location in mind is airport.

Just like jogdy mentioned, I don't have experience YET in running a business. I'm an engineer by profession currently. But I always have an entrepreneur heart *wink*. So the easiest venture i can think of at the moment is franchise business. Any good advices & guidances are welcome

Cheers

Good Thread TS! (other than the argument ) although i don see any possibility i can own open a franchise in near time, ... but everything starts somewhere.. so i have began to do research... at least have a better understanding in the business.

Im an interior designer... not sure what skill i can benefit for the business...

TS good luck in opening ur franchise. I'll follow this thread from time to time

No understand what you mean?
I know of an interior designer who operates a franchise kindy with a partner and end up marrying her
So what are your expectations?

how about the local franchise brands?

kamemada,

I agree, we should not let some ignorant kid spoil the discussion. Apart from those F&B franchises, there are HUNDREDS of other franchises across more than 10 industries to choose from, so we should not just focus on F&B alone.

I myself am considering to apply for a kindergarten and travel franchises.

knwong,

My advice for you is to KNOW why you choose the particular business or franchisor. It will help you greatly when attending the interview.

clivengu,

Have you started any type of businesses (medium or small) in the past? How much do you know about business? You see, most franchisors are not specifically looking for people who have skills or experience in the industry they are venturing, but more of the enterprising side of the applicant. So, whether you have experience in the industry or not does not really matter, what matters most is knowing what you need to do in business.

Which ones?

franchising is a risky job, you pay so much and they won't guarantee you whether you'll earn. that's how conventional business runs though. what if i tell you there's a new company in town that eliminates the fee for franchising? some people are skeptical so yeah i'm not going to say more than this.

Guys, there's a site with all the franchise information and listings...its http://www.ifranchiseasia.com

How much franchise a KUMON tuition center????

Thanks for the link. Very nice!

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Added on March 26, 2010, 11:12 pmBased on the site given by playlife below;
http://www.ifranchisemalaysia.com/kumon-fr...y.html#more-794
Franchise Fee: RM2,000 per subject
Subject Offered: Mathematics & English

You may contact them personally for more infos.
Company Name: Kumon (Asia & Oceania Pte.Ltd)
Tel: +603-2093 9040
Fax: +603-2093 2460
E-mail: information@kumon.com.my


This post has been edited by kamemada: Mar 26 2010, 11:12 PM

sellerlol,

Kumon charges the franchise fee by subjects. The fee for each subject is RM2,000.

Thanks for the info.

Nope I have 0 % knowledge in business. And my family and friends never involve in similar field. I do a bit of googling and survey seems and I find that I'm very interested in thr subway franchise. It seems to have lower franchise fees and the system I find is easier to manage. Training and other support will b given. To me, it seems to b a more realistic n possible to have a smaller scale business like this , compare to McDonald's etc giant one. Even small... but it will still require up to rm 300k ++ to start running the business. Will require bank loan of course... up to 70% ... if all goes well the final question is... will it earn ?

If monthly couldn't earn more than rm 8 to 10k ( after deduct all others rental, loyalty fee , salary etc & bank loan!) I don't see the point of starting the franchise . How do u find?

In the above, do you mean franchise fees alone is 1.2m for papa rich and that only for 5 years? After that?

clivengu,

I have absolutely NO passion in the food industry, so I think I am not suitable to comment on the franchise. Regarding the other issues, I have replied in your thread.

constant,

Usually, franchise license is only valid for a few years (as agreed), but you will have the option of renewing it upon expiry. The reason for that is for them to evaluate your performance (to keep the standard of their businesses).

1.2m for 5 years is 240k per annum in franchise fees. Thats 20k per month. I think very clearly the only winner is the franchisor because no way a normal shop will generate enough sales to cover the franchise fees unless it is in super "wong" place. At the end of the day, the franchisee will earn back his "gaji" working there. That's all.

constant,

You are confusing yourself. They are 2 different fees altogether. The first one is the franchise fee (which is a one-time fee you pay for all the necessary tools/knowledge to get you started), and the second one is the renewal fee (the fee you pay to renew your contract).

Ok. Jordy. For paparich, can you breakdown which is which? Thx

If ...if ...if and more ifs.
Will it earn? One thing for sure, if it earns then we will be seeing many of its outlet mushrooming every where, won't we?

hmm.. i called the 99 speedmart number. the lady there said no franchise ?

what is the proper procedure to setting up a franchise (any franchise) in regards to the role of the Malaysian authority, MFA (are they watchdogs or just an association you join?).. like,, if i wanna start a new McDanny's franchise (imaginary), do i have to register with them? or if i buy into an existing franchise, do i have to register with the mfa first, or get approval from McD or Subway oir whatever first, or in tandem?.. thanks..

I'm not a pro...however I will tell you what I know from my understanding...
but if you want to open a franchise such as Mcd,kfc,subway...
the best method is you go to their website and look for information....
fill in the form...
and wait they company to call u if u r qualified...

Only companies who franchise out their businesses needs to register with KPDNKK. You need to approach these companies if you want to franchise a unit out.

Go to KPDNKK, they will help you with more information. They will even give you money for acquiring. If I am not mistaken, RM50K.

May I know how can I know the spending power in the area of the megamall, eg sunway pyramid, pavilion, KLCC, midvalley etc

Stand there for a whole day, I done that before (Ok, it's not me, my guys). Data are useless compare to your own observation.

This post has been edited by recyka: Dec 8 2011, 02:41 PM

What methods do you guys use? How many days to stand there?

many thanks!

Our method is not feasible to you unless you have a team. Just survey around, and you don't need to survey KLCC, MV, Sunway Pyramid and any malls that have similiar popularity. It's a matter of if you want to open and if you are able to (I mean if you can secure one)

This post has been edited by recyka: Dec 8 2011, 03:38 PM

Hmm.. actually just wanted to prove sunway pyramid and pavilion have similar spending power, cause going to take a franchise which is a high end 1..