How to do franchise business in Malaysia?

Establishing a franchise business in Malaysia requires compliance with the Franchise Act 1998, regulated by the Ministry of Domestic Trade and Cost of Living (KPDN). With extensive experience in cross-border business expansion, we assist clients in creating scalable and legally compliant franchise structures in Malaysia.

Franchise Registration Requirements

Both foreign and local franchisors must register their franchise with KPDN’s Franchise Development Division before offering or operating in the Malaysian market. The registration process requires:

• Franchise disclosure document

• Franchise agreement

• Operations manual

• Training plan

• Proof of trademark registration

Foreign franchisors must also appoint a local representative or master franchisee to facilitate local operations.

Franchisee Registration

Franchisees must also register with KPDN before commencing business. The franchise agreement must comply with Malaysian law, covering:

• Duration and renewal terms

• Conditions of termination

• Obligations of both franchisor and franchisee

Market Potential and Legal Considerations

Malaysia offers a growing franchise market, particularly in sectors such as food & beverage, education, and retail. While opportunities are promising, domestic laws require careful attention to:

• Language use in agreements

• Dispute resolution clauses

• Intellectual property protection

Leveraging extensive experience in offshore and cross-border franchising, we provide end-to-end support for businesses, from registration to operational setup. Our services include compliance guidance, trademark protection, partner acquisition, and local representation, offering a smooth and compliant market entry for both franchisees and franchisors.

 

For businesses seeking professional assistance in setting up a franchise in Malaysia, Offshore Company Services provides comprehensive support, including franchise registration, local representation, and compliance management, ensuring your expansion is efficient, legal, and strategically positioned in the Malaysian market.

Learn more: Low-Cost Franchise in Malaysia for New Entrepreneur