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

I've seen one McD closed down (= bankrupt ???). It was operating in a shopping complex. It started out quite well. But since the complex had failed to attract patrons, McD "died" with it.

You can get real franchising information from their webby. Apparently it's not easy to become a franchisee. Having enough capital doesn't necessarily mean you'll get the franchise. Franchise applicants must go through one-year long training to see if they are eligible to become franchisees.

dead thread?
i talked to a franchiser yesterday. food industry. similar to starbuck.
franchise fees 100k first. then 4 percent of sales goes to them.
all in should be about half a mil to 1 mil to start operation.

whao..
half a mil..
huhhu..

Time to kickstart this thread back to life!

I have visited and spoken with several F&B franchisors and shortlisted two based on the following criteria:
- Responsive to emails, phone calls and questions
- Franchise fee + start-up capital less than RM100,000 (this rules out big brand names like MacDonald's, KFC, Delifrance, Starbucks, Secret Recipe)
- Attractive brand positioning
- Stable sales at existing outlets
- Reasonable well prepared franchise procedures

The two franchises are 1901 Hotdogs and Daily Fresh, both have over 50 outlets across the country and still growing. Seeking 1 or 2 partners who are interested to JV to set up a franchise outlet in their area. Start-up costs, monthly costs and profits will be split according to a profit-sharing ratio to be discussed in more detail. Drop me a PM and we can discuss further.

Cheers,
Sam

This post has been edited by techventurer: Jul 28 2008, 03:24 PM

better do own business than franchising....no royalty whatsoever

when you are venturing into unchartered waters, franchising is an insurance to mitigate risk. i have and am talking to this f & b franchiser. in the process of getting approved. swensen's franchise in thailand is about 0.5 million ringgit. ( all in to start operations). i called vincci to get their franchise but they reply that they have appointed 1 single company in bangkok and it is up to the bangkok company.
about the card reload machine, sure they are desperate.. in bangkok motor show, the silly machine only cost 2-5 thousand ringgit malaysia.!!!
selling to people in malaysia for 48K ???? how much profit.. ? like this i also desperate to sell la.
actually many other business is giving more profit and income but franchising is more for people who want to diversify their business income.

If the start up capital is less than RM100,000 than we as normal ppl still can consider.
But say the startup is 0.5mil or 1mil, think about this.
1) How many years is required to recoup that capital.
2) Monthly expenses incurred i.e. hirings, stocks, bills etc.... should be included into calculation.
3）Risk is being minimize but could you sustain the business in the first place. Talking about 1901 hotdogs; how many of us here actually visit the stall? I hardly have 1901 hotdogs. Thus when franchise fee is low doesn't necessary mean good business.

This is all I could think of now.

What is daily fresh franchise?

1) recoup capital at 2-3 yrs ( IF YOU hit jackpot, 7 month recoup)

2) .5 million includes operation and stock for 2-3 months
3) You are right but in different hands, the risk can be almost zero.

If you are in my position,you will not be talking about risk of losing but only talking about which investment is getting more return.
existing business in churning out money and in existing business, we buy alot of rice cooker, fan,shirt,umbrellas,mattress,etc ..every month .all these are actualy given free to our customers (i am in financing ) so in stead of buying rice cooker, i can give free vouchure or sell these vouchure worth 10 ringgit for 2 ringgit to those customers. the 2 ringgit is not important but to make sure that my food is not branded as cheapskate.
So my existing business buys the vouchure from new franchise and it's like mother company helping baby company while mothercompany got nothing to lose and baby company got safety net to ensure profit.
if profit still not good, i close down 3 yrs later with 0 loss .
it's like son sells lemonade and no customer so father buys the lemonade and belanja to staff. ( since father have to belanja staff anyway)

i am also getting bank loan of 300k to do this franchising.. maybe looking for a trustworhty partner ( i dont need to see the business so often).

i have opened an independant laundry business, no franchising involved, still get good money although just 1 and a half month......already covered rental, wage, electricity, water, phone line, streamyx soho, makan, petrol plus plus profits !!!

You should check out the Malaysian franchising association. There are quite a number of F&B franchises around that you can apply for.

And remember - sometimes, you can even propose a franchise!

congratulations!
but your time is tied up in the shop. you cannot go anywhere.. work eat work eat laundry..
wish you open 2nd ,3rd 4th branch..

well guys how to evaluate and sell your franchise?

yes this is the point of opening up business, for the first several years, I have to stick here and gather as much money to open more branches. this is the way self employment all about. i don't have to pay royalty to anybody. my plan is for my children, i want them to have their own business when they grow up. i don't mind sacrificing my time and money for them. but i don't stick here all day long actually, i can hangout with my wife and baby at anytime i want as my counter system is computerized and cctv is watching all corners. my staff can take care of the customers. hear my advice for example if you want to open a franchise laundry (Pressto or Mr. Clean) you have to invest 4 times than what i have invested in my own laundry business plus i have no need to pay any royalty to anybody. i don't have to attend any meeting organized by the franchisor and don't have to pay for advertisments. If you do your own business, you are independant, you can even do your own of marketing strategy without asking for permission from anybody. If you are a franchisee, it's like you have to obey your franchisor, becoming the head of one business, you don't expect to be UNDER somebody, do you?

got different ...

like mcdonald, it already a famous restaurant world wide ... means owner can save time to promote it and enjoy instant profit if in good location ....

compare u open a new restaurant, you having a tough time to advertise/promote it ...

and most franchising is in F and B field ...

like kopitiam also, damn famous now ... franchising fees is killing

Glad to see some good points being raised on both sides of the discussion - franchising versus setting up own business. No doubt that each has its advantages and disadvantages.

I would say that in franchising, you are basically paying for two things - an established brand name and the business knowledge. This usually means that the business can be set up more quickly and with less headaches and hassle, especially if the franchisor is a good one that can provide advice, guidance and well-documented procedures. In some cases the money forked out for franchise fee is also covered by cost savings, because there is no need to hunt for cheap suppliers. In addition, franchising itself may actually be a stepping stone to setting up your own business, as it will allow you to gain knowledge and experience quickly.

On the flip side, definitely there is some loss of control. You don't feel like you own the business 100%, because franchisors usually impose restrictions on what you can sell and how you can sell them. Also there are fees to be paid to the franchisor, both initially (franchise fee + setup) and on a regular basis (royalty and admin fees). For some very established franchises like McDonald's and Coffee Bean, the franchise fee alone can be above RM100,000 and the total start-up cost close to RM1 million. However, there are also some newer franchises where the start-up capital is less than RM100,000.

As mentioned earlier in the thread, I have shortlisted a few based on certain criteria. It has always been one of my business dreams to own a small F&B business. If there's anyone who has similar interest in such ventures, feel free to PM me!

in short words, franchising is easy to start up... and less brainstorming while own business is the opposite of it...

both have equals risk... in different factors.

Sorry if this is old. But I just read this at McD website. Basically the cost of starting a McD franchise depends on the size, type, location, style of decor and landscaping. It could be anything between RM1.5mil to 3.5mil.

Sauce: http://www.mcdonalds.com.my

[attachmentid=455896]

This is not the case, because you will have to fork out such huge amount of money. Normally people wont have alot of money if they were to setup their own business. Normally frm small->large. No body can afford to fork out 1-1.5m to start a new business if they're not entrepreneur or self-employed before. So this argument is flawed.

This post has been edited by keith_hjinhoh: Apr 28 2008, 02:11 PM

yes about that range, last i checked.. so.. do you have rm1.5mil?

Not all franchises cost 1-1.5 million, some are available for 5% of that amount.

Also, do note that I did say it MAY (as opposed to WILL) be a stepping stone to an owned business. For example, there are cases of people buying a single-unit franchise to build up knowledge and experience, and after that making use of these to launch their own shop or chain to compete directly or indirectly with the original franchisor. Things like this do happen in the business world.

It is also the same case as employees that were well-trained to go against their employers.
Another cheaper alternative to learn about a certain business/sector is by WORKING in the business/sector.
I do agree that not many people can finance a franchise, so being employed while learning about the business is the safer route.
This alternative is a risk-free way, so the returns will be lower as well, but once you master it, then you can start building up on your own.

I definitely agree - direct employment is another effective and certainly cheaper way to understand a business or industry.

Just a note of caution that one must ensure that the relatively risk-free nature does not result in insulation from the nuances of business. Eyes and minds still need to be kept wide open.

my franchisor is asking for 4% from sales. and they use online cash registor to track sales. and also have to pay a lump sum (1 time )on franchising fees. 100k

what franchise is that?

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Added on May 28, 2008, 11:02 pmIs this thread brain dead or wat.

This post has been edited by hackwire: May 28 2008, 11:04 PM

Haha yeah, this thread seems to have died.

Franchising International Malaysia is on at PWTC this weekend, think it can be considered the biggest local franchising event for the year. Anyone interested to go? More info can be found at the website: http://www.mfa.org.my/fim2008/index.php

Looking at this, i think i have few advice for u...

why franchise when you can have your own business !

why have your own business when u can franchise? heheh.. same thing..

no royalty for own business, profit is 100% ours

you can consider franchising your business other ppl will help you grow faster. Franchising is a form of leverage where franchisor leverage on franchisee's time and money, Franchisee leverage on franchisor's idea, concept and brand.

Beside F&B, you can try franchising beauty salon. last time i used to work under a franchise manager in a public listed beauty company. they have corporate outlet and frnchise outlet. the marketing and operation ppl always update and help corporate outlet only. they don't care about the frachise outlet. that leaves my manager very difficult standing in the middle

hi,

do you mind sharing more on how u went abt starting your laundry business... i thought of it too as there is great demand for it.

how much roughly to open a 7-11 ?

is petrol station are franchise business also ?

if it is, I sure most prefer

are petrol station and follow by food franchise

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Added on January 22, 2009, 6:50 pmI asked already, 7-11 is not a franchise. They will not franchise also. That why alot shop decorate similiar with 7-11.



This post has been edited by Aggronax: Jan 22 2009, 06:50 PM

It is quite difficult to get the franchise of petrol station if you do not meet their kulitfication requirement.

Yes, and also need recommendation from other petrol station if I not mistaken.

50k cannot la...Open a dailyfresh kiosk also cannot...

Anyone here looking for petrol station business ?

you sure 7-11 don't have franchise opportunity? I heard so many ppl franchise 7-11. At the same time also have a lot of ppl deco their signboard with similar colour and design like 7-11. I have seen before 8-11

Smart wash dobi maybe can.


Is it true that only bumi can franchise petrol station? or at least you must have a bumi partner?

Not necessary have to be Bumi only can get the approval.
Its a matter of qualification and the ability to fulfill the requirement ..

is there any franchise business with capital not exceeding RM150k ?

@am_eniey
Greetings,
Which type of industry you are looking forward to invest in ?

not sure, just curious

ngek ngek ~ u wanna offer me some share? heehehe ~ joking ~

btw, any requirement that I should know for caltex?

maybe seeing you face to face are require jor



80% confirm cause I ask those imitation 7-11 why don't they direct setup 7-11 eventhought franchise fee is higher. They saying

It control by berjaya. not sure It was berjaya or not, if is berjaya group holding then 100% is not franchise liao.

Hello Bro.Aggronax ..
Sure .. if you are interested to invest your money in operating one. PM me .. and we shall make an appointment to discuss further about it.

Regards,
Hughie

Any1 can advice me on what to do or any advice i can get if i wanted to get current food business franchise out?
it's best if could recommend some good books for me to read before i franchise it out... (eg. S'ban siew pau)

i'm now with 3 stall all belong to me.. i could't do any better becuase of time constrain in the morning stock deliveries and stuff... advice please~~

ok, what type of industry do you recommend ?

Can you please enlighten me with your current food business. I'm eager to know about it.

it's dried meat bread.. i am currently having 3 stall.. can't do much.. time constrain.. so must well i just do it bigger by franchising out.. less cook easy to handle stall...

Erm, thanks for the reply.
Can I know where is the location of your stall?
I might want to go and have a try.

U GOT PM...

Thanks for your PM.

any paparich franchise info?

-edited-

This post has been edited by zenwell: Aug 12 2009, 03:48 PM

I'm interested on 1901 franchise. Any info regarding the total cost required and how they choose the franchisee?
Owners are welcome to share your experience.

Franchise International Malaysia 2009 event is back again, next weekend at PWTC. Anybody here going?

Since the topic is dead, would like to revive it =)

Anybody interested in franchise for Boston or Austin Chase?
Amount required is about 250k.

Do PM me for further details

1901 , franchise cost is 90k , not sure if it is for bumi only

mind to share some details here? thanks

I hope this Thread can continue to live on...

I always dream of opening a franchise F&B.. Im interested in Subway actually...

But back to the biggest problem...$$$$$ i know even if I work my ass out I wont be able to collect 300k-400k ...in 10 years? so I think the solution is to go for bank loan...

Is this actually the right way of doing it? 10-20% cash n d rest business loan from bank.. or the right way is.. u must able to get 400K CASHHHH to start with? mind sharing.. for those who have started this thread years ago.. mayb now have own their own business successfully...

Hi,


Existing Cartridge World Franchise for Sale.
Comes with existing Customers and is already profitable.
World leader in ink / toner refilling.

For enquiries, please call 012-2874435.
Asking Price is lower than setting up new store!

I heard that Oldtown has already taken over by Berjaya Group and the oldtown boss is the owner of Paparich ... is this true? Btw, I prefer Paparich over Old town... Better food taste, environment...

Same here.

Is this thread dead YET? NO!
Lets make it alive again!

Please keep the discussion on franchising going on!!!

I recently thinking to bring MPH into Sarawak.
However, I have no idea on who to contact?
I called MPH and apparently the staff posses little to no knowledge on this subject lol.

Any advice?

Me too.
But for business wise, OldTown is doing much better now in term of expansion, marketing and pricing.
I can go there for breakfast everyday because is really affordable.

I am considering to join a franchise programme in selling (retail) fresh water fish.
Basically it is operating at shoplot in neighborhood taman while the franchisor will take care of the supply (as they do own farms)

Franchise fee is reasonable at RM20K, plus the set up cost about RM60K.
This concept is new and i would say less competitive.
The market is unknown as i think people will either by from wet market or prefer the sea water.

However, I see it got potential as
1. Live fish is more health conscious
2. new generation will not like to shop in wet market.
3. The biz can expand into other seafood and related product.
4. The main issue of the fresh water fish is the muddy smell, which this company's farm is having the technology and the way they rear the fishes make the problem solved.

However, the most crucial part is the overhead cost which are the rental, staff salary etc.
As the biz require a good location and must be a ground floor, thus monthly rental alone is RM5K in general.

Don't forget to get a franchise system

Which allow to different company, different location.

Control purchase, sales and lastly P&L report.

Like to know more?
PM me.

Nelson's Franchise is available

Industry line : Food and Beverage
Core product : Corn in Cup

i wonder whether uncle bob is a franchise?
try to look for it and people said no but just want to be sure..
im interested in it..coz seems affordable..below 10k,i guess?
nowadays got too many uncle bob wannabe with bad taste&quality

more info?

Nelson's is a malaysia home brand which sells corn in cup, waffle, dorayaki and beverages. It is a type of kiosk that can be operated in shopping malls or LRT stations.

For more info. Visit www.nelsons.com.my

Anyone interested in franchising license of the Bios Life range?
The company is from US and specialized in Heart Health products. The return profit is high, please pm me if you need more information.

One of their flagship products can:
1. Reduce LDL
2. Increase HDL
3. Reduce blood pressure
4. Reduce blood sugar
5. Fat burning formula.

These products are listed in the Physicians Desk Reference and is supported by more than 30% medical professionals world wide.

Anyone here have idea on starting their own franchise-able business?