Decided to start a franchising thread because seems like there is quite a bit of interest in it (including from me) but most of the discussions are hidden in threads about "Business for RM50K" and franchising doughnut shops and MacDonald's.

Shall start off with a few basic questions:
1. Must all franchises be owned by a registered partnership/company?
2. Can a franchise be owned, or part-owned by a foreigner?
3. Are there really franchises that you can get for RM50K, with monthly costs (fees, manpower, rent) below RM5K?

For me, I'm interested in franchises in the F&B and computer industry.

1. Franchises owned by a registered partnership/company ( true )
2. Yes, can be partly owned by a foreigner but only 30%
3. Depend on what type of franchice.

Well, you need to make a research on Location, Population, Cost, and worst case scenario. f&b can be franchise but it doesnt mean that everyone has the same taste

just my 2 cent

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Added on January 16, 2008, 4:03 pmfranchising McD is not that easy as we think.

you need to be prepare to give all you income for ( not sure how long ) to McD company as franchise fee. i think is either first 3 months or 6 months then you only can "OWN" the profit.

after that, every year you need to pay certain franchise right to McD company... not sure how much again.. count by % of your revenue.

This post has been edited by wenjie86: Jan 16 2008, 04:03 PM

yep.. franchise is more or less as explained by wenjie. mcd is talking about million of investment with extra certain amount of money for backup.

rm50k, i'm not exactly sure .. there's a franchise fair every yr, probably you can look around there.

Latest one is the franchisor of touch screen to reload your hanpdhone(MAT Kiosk). In the future they will upgrade this to include paying all bills(TNB, water. streamyx), booking for bus and even flight tickets. Very high prospect. Total cost of franchise Licensing and the machine including the product, maintenance fee is around rm43,000. Monthly can get passive income up to rm5000 or more depending on good location. Marketed by Global Marketing Concept if im not mistaken. Their office is around Bangsar area. They just introduce the product to the market 2 months ago.

i dont mean to mock this company's business, but in my opinion, the future of payment would be using credit-card and pay via internet. should have consider this factor before venture into it..

May I know which is the website that states the regulations of a franchise - such as the requirement that franchise can be foreign-owned but maximum only 30%? Did a search on Internet but cannot really find...

So far two of the more affordably priced F&B franchises that I came across are Baguz Bytes and 1901 Hotdogs. Franchise fee and initial capital add together should be less than RM100K and monthly costs estimated to be less than 10%. Any comments on these or others?

Regarding MAT Kiosk, it seems like there is a lot of bad press about it as it is managed by the same people that introduced the Airku water vending machines.

For McD I think you need a million or two to get their franchise. I know I read it somewhere. But I forgot

McD is dominantly hold by Golden Arches Restaurants Berhad. KFC is hold by KFC Holdings. Its a franchise business, but different than the normal franchise. I would call this term as 'knights of the round table' franchise business. You got to have shares in the mother company to be able to own those franchise business.

Beware about this,I was in the Mid valley exhibition centre and those guys there approached me about this thing.So i was intrested becaues it seems like a good oppurtunity,that is until...
I found out that we will be the losers and they will be the winners

First off they told me to fill in my particulars,so they knew that i was only 19 and a student.They "pakat" right before a guy came to me.
As usual,all the sweet talking started,saying that i dress up well,business minded which is good and so on.When he started talking to me about the machine,i kept asking how much is the capital and he kept pushing it to the end saying that we will discuss that later

Fine by me,I was happy with the explanation and was pretty much satisfied with what the machine will be able to generate for me,He said the average clean profit is 2k a month(dat is if we actually make the sales that they target daily).Take it as side income.Fine by me.

Now the best part came

I said,"So,how much?"
he said oh i dont know that you have to talk to my manager.
How is it possible that a worker dont know the price of a machine that he is even promoting?
Fine i spoke to the girl in charge she said the machine if i am not mistaken is rm48000 or 58k and she said if i use a credit card there will be a discount BETWEEN 10-20%

I said fine i use american express so what is the discount like?
They were shocked that i had a credit card so she probably simply said 20% discount
I calculated if 20% discount i will be paying rm38400 or rm46400 for the machine.

okay,dats odd,that is real drop of the price difference from 48k to 38400?
And he said whats wrong?is it too expensive for you?
Hell yeah,it is expensive for that damn machine.

He said i will to talk to my manager for you.So a guy named nicholas came in the picture and he said to him
"This guy here is intrested in the machine buy the price is too much for him.
He said okay i will do my best to help you

i have an odd number of machine left,because someone took 3,so i can give you a speical price,just rm25000!but you must take now before its too late.
I said what if i dont take now
"You will lose the benefits of a one year free maintenance,free 2000 sheets of roll"and all that rubbish which i forgot

It seems you only get those privilleges if you get it on the spot and not on your second return,what the hell was that?
from 48k or 58k they can drop all the way to 25k so easily?rubbish.
I told him i needed to discuss with my parents first and guess what was the answer i got?
"Think about it,if your parents say no to you,are they going to stop you from doing this business"
Yeah,they do boy.

i kept wanting to go off after i found out how rubbish it is and they kept pulling me back saying dont waste the free maintenance and all and saying that it is too late.If business is so good for them then they dont have to care about me.

He was so desperate that at the last moment he said,if you give me something to hold on like maybe rm500 i will do my best to reserve for you at that price,25k

I said its okay and walk off.I had enough.

sounds like they are so desperate to make ppl buy the machine. if it is so profitable, no need other ppl, especially the public. they can easily raise the capital from more internal/angel investor and and they will control the whole market. but i guess its not true..

why all food franchise only...why no one talk about bookstore franchise like mph or popular bookstores, or clothing like levis or sports outlets, or cars accessories like brothers, or toys r us etc etc etc?

Yeah,they were so desperate that they really didnt want me to leave.Why?Because they are scared that i will probably find out the truth.

I mean come on!There is no such thing as you get free maintenance,free paper rolls and so much more when you buy the machine on your first time visiting and they will cancle it on your second time.What REAL business does that to their clients?

Utterly rubbish!

MAT KIOSK IS A BS

they are probably just a promoter for the parent company, usually have very limited product knowledge and selling approach skill.

how much percentage normally a franchisor takes...10%?

Still depends on what type of franchising.

It varies, most charge a royalty fee of the monthly sales. This can vary between 3-5% but some as high as 10%. And some franchisors also charge an advertising & promotion fee of between 1-3%.

One non-food franchise I recently came across is Camps & Apparels, that sell outdoor gear, school uniforms, apparels and accessories, and security/safety equipment. Anyone heard of it or has some views about it?

Also, anyone considering going into food & beverage franchises, feel free to PM me and we can discuss some business possibilities and ventures...

GA is the master franchiser for McD in Malaysia. It owns virtually all the McDs in W. Malaysia. In E. Malaysia, there are 4 (?) McDs owned by 2 (?) local businessmen. In fact, GA is "actively" looking for franchisees to penetrate smaller cities in W. Malaysia.

Read up more here

I don't know much about MAT Kiosk. I received a call from a marketing company hired by AsiaEP last October. They were launching similar vending machines and were looking for franchisees. I was told I'm eligible because my salary > 3k and blah blah blah. The guy said if I meet them up there will be a lucky draw to Bali (?) for me.

ibon is far more advance than MAT Kiosk but it's only available in Taiwan. Do you guys think ibon can work in Malaysia?

This post has been edited by iamsobloodysick: Feb 22 2008, 08:50 AM

if not mistaken, McD will need at least rm1 mil as it is proven successful franchise, so far never seen any McD bankrupt before.

every year u need to pay a certain amount of franchise fees, and every month, u will need to pay 3% from ur nett profit to them.

anyway, i heard it from fren, so not sure how real is his info.
mayb just take as reference.

KFC, burger king is cheaper franchise, but off course, i believe u k guess why it is like that

nope,they are the main company that is selling this.Not for any other company but for them