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Analysis of "Setting Up a Franchise Business in Malaysia"
The article discusses the process of setting up a franchise business in Malaysia.
Some well-known foreign franchise brands in Malaysia include KFC, McDonald's, Subway, Starbucks, and Marriott.
Franchising offers a faster method of expanding a business based on the franchisor-franchisee relationship.
Advantages of the franchise model include access to an established and well-known brand, shared operational and marketing expenses, and access to proven business systems and support.
The legal definition of a franchise in Malaysia is outlined in section 3 of the Franchise Act 1998.
Franchise business involves granting the right to operate a business and use intellectual property owned by the franchisor.
Franchise registration is managed by the Franchise Development Division under the Ministry of Domestic Trade and Cost of Living.
Franchisors must register their franchise business with the Registrar before offering it to franchisees.
Local franchisees operating under a foreign franchisor and franchisees granted a franchise from a local Malaysian franchisor also need to register their franchises.
Steps to consider before establishing a franchise business in Malaysia:
Conduct market research to assess viability and profitability.
Research and evaluate different franchise opportunities.
Negotiate and sign a franchise agreement.
Register the franchise with the Registrar of Franchises.
Obtain necessary business licenses and permits.
By following these steps, aspiring franchisees can secure their legal and financial interests and build a profitable franchise business.
Key Takeaway: Setting up a franchise business in Malaysia involves conducting market research, selecting a franchise, negotiating the franchise agreement, registering the franchise, and obtaining the necessary licenses and permits. By following these steps, entrepreneurs can leverage the benefits of franchising and establish a successful business.