Franchising is a business expansion model where a franchisor grants a franchisee the right to operate a business using its brand, system, and support in exchange for fees. In Malaysia, franchising is regulated under the Franchise Act 1998, ensuring compliance and legal protection for both parties.

Yes, under the Franchise Act 1998, all franchisors must register their franchise with the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) before offering or selling a franchise in Malaysia. This applies to both local and foreign franchises.

To operate a successful and legally compliant franchise in Malaysia, franchisors must have:

✅ A Profitable Business Model – A proven concept with strong financial performance
✅ Scalable & Systematic Operations – Standardized SOPs for consistent quality
✅ A Strong & Recognizable Brand – A trusted reputation with market demand
✅ Comprehensive Training & Support – Clear guidelines to help franchisees succeed
✅ Legal Compliance & Registration – Approval from KUSKOP to operate legally

The franchise registration process typically takes 3 to 6 months, depending on document preparation and approval from KUSKOP. Working with a professional consultant can help streamline the process.

Franchise costs vary based on the brand and business model. Common fees include:
💰 Initial Franchise Fee – Paid upfront for the rights and support
💰 Royalty Fees – A percentage of revenue paid to the franchisor
💰 Marketing & Advertising Fees – Contributions to national or regional branding efforts
💰 Operational Costs – Setup expenses, inventory, and training fees

Yes! Foreign franchises must register with KUSKOP before offering franchises in Malaysia. They also need to appoint a local master franchisee or establish a Malaysian entity to comply with regulations.

Popular franchise sectors in Malaysia include:
✅ Food & Beverage (F&B) – Restaurants, cafés, bubble tea, and fast food chains
✅ Retail & Convenience Stores – Mini-marts, specialty shops, and lifestyle brands
✅ Education & Training – Enrichment centers, tutoring services, and skills academies
✅ Health & Wellness – Fitness centers, beauty salons, and healthcare services

A business is franchise-ready if it has:
✅ A Proven & Profitable Business Model – Stable revenue and operational efficiency
✅ Scalable Systems & Processes – Standardized operations and clear SOPs
✅ Brand Recognition & Market Demand – A strong brand with customer loyalty
✅ Training & Support Structure – The ability to train and support franchisees

Franchising allows business owners to:
🚀 Expand Faster – Grow using franchisees' investment instead of high capital costs
🚀 Increase Brand Presence – Build a nationwide or international network
🚀 Generate Recurring Revenue – Earn from franchise fees and royalties
🚀 Share Risks & Responsibilities – Franchisees manage daily operations under your brand system

At Maction, we provide end-to-end franchise consulting, including:
✔ Franchise Model Development – Structuring your business for franchising
✔ Legal Registration & Compliance – Assisting with KUSKOP registration and documentation
✔ Franchise Business Strategy – Designing scalable expansion plans
✔ Franchise Marketing & Sales – Attracting and onboarding franchisees
✔ Operations & SOP Development – Standardizing systems for franchise success