Franchising is a business option for those investors who are interested more in acquiring the licenses for expanding a business rather than buying a company or opening a new company.

In order to start a franchise business in Malaysia, investors will need to enter into a continuous franchising agreement or relationship with a franchisor (the corporation selling the licensing rights).

Franchising is an advantageous business model because the franchisee (the one buying the licenses) acquires not only the license and service usage rights but also the know-how of an already established business.

Some examples of franchising opportunities in Malaysia include fast food chains, coffee chop chains, supermarket chains, and various companies that operate in the food sector as well as companies in the pharmaceutical sector (pharmaceutical chains, for example).

Choosing the type of franchise is important. A proper local market research is recommended in order to determine how a franchise would be received on the local Malaysian market in cities like Kuala Lumpur or in other locations.

One of our attorneys in Malaysia can help you with information about the conditions for foreign franchisors and the governing laws for franchising, such as the Franchise Act.

Our team of lawyers in Malaysia can help foreign investors who wish to start a franchise business in Malaysia.

Franchisees should understand the nature of their relationship with the franchisor and the rights and liabilities of both parties entering this type of business agreement. The franchisee will become the affiliated dealer of the franchisor and will be under the obligation to return some of the profits to the franchisor but will also receive assistance for business organization, trading, and marketing.

We can provide the adequate legal advice and business solutions if you want to start a franchise in Malaysia. One of our lawyers will start by offering you a personal consultation, according to the particular business field in which the future franchise will operate. We recommend that you consult with one of our local experts not only to better understand the legal requirements but also for making a documented and informed business decision.

Contact our law firm in Malaysia for more information on how to start a franchise business.