Purchasing restaurant franchise in Malaysia and its marvelous benefits
Purchasing restaurant franchise in Malaysia is a sound business to do. Franchise is a kind of business in which you have to work for yourself, but not by yourself. A franchise purchase is an easy way to buy an already famous name of the market. Although, there are royalty charges which you have to give weekly or monthly, but the ease of raising a business is always there. The successful owners are always ready to give their franchise, as it will help in increasing the business rapidly with their brand name. On the other hand, the person who is purchasing the franchise is getting full help in developing the business by the brand owner.
The owner of the franchise is bound to give all the tools to a person who is buying to run a successful business. In this way, the franchise will get the benefit of working with all the right resources. Another benefit is that you will not commit the same mistakes, which the brand owner has once made, you will do it tactfully with the help of full guidance.
There are a lot of benefits for franchising. You do not have to run to make your name; you are doing business with the already liked brand. You do not have to take hassle of designing a logo or tagline. There is already a line of customers who like your brand. You just have to buy a franchise and start working with full support from the brand owner.
The FDD franchise development division maintains the buying and selling of franchise according to the laws of FA (franchise amendment) and FR (franchise regulation). The FA assures a lot of rules and regulations applied to both franchisors and franchise according to different requirements of local franchises and foreign franchises. A foreign franchise who wants to sell the franchise to Malaysians should get approval first. Local franchisors also need to register for their sale of the franchise before selling it. Failure to abide by the rules can result in penalty of RM 150,000 or imprisonment of period in between three years. Therefore, never take risk of starting any business without legal proceedings.
Other than that a person must have 3 years’ experience in the restaurant business, to be able to get the restaurant franchise. He is obliged to show enough capital to be credited as worthy of buying the franchise.
Disclosure rules and regulations which have to be followed by master franchisee and the franchisor in Malaysia:
- Before buying a franchise for restaurant make sure that the details of each and every corporate personal: their name, background and experience.
- To check if the company is free from bankruptcy
- Mention of royally fees
- Initial and final investment cost of the franchisee
- Territorial rights to use property
- Obligations of the franchisor, before, during and after the purchase.
- Conditions, applications, duration of agreement should be crystal clean
- Five years financial forecast should be mentioned, along with three years audited financial accounts
Here is some of the research done which can assist you on choosing the good brand names, if you have made up your mind to buy a restaurant franchise. Some of the low cost restaurant franchises which you can buy in Malaysia are the following:
Nelson’s
It began with serving corn in a cup and spread widely in 17 countries with 1000 outlets. If you have low capital investment you can buy its franchise. There is no royalty fees which the company charges.
The fees for franchising is RM 5000- RM 12000
The total capital investment in the start is RM 15000- RM 60.000
Frespresso
It is offering very different product line and its business is growing with fast pace. The company also makes live meals with a vast variety of beverages. This coffee model is uniquely designed with economical rate to buy the franchise
The initial capital investment will be around RM 30,000 to RM 40,000
Laziz pizza
Laziz pizza is very famous for its pizzas and it started in 2013, and made its name in the market very quickly. The company has only one outlet in Malaysia, but it is actively seeking franchisees to expand the business.
The initial capital investment is around RM 17,000
Crazy potato
Crazy potato is famous for its outclassing taste in French fries. They offer various potato items with a vast variety of toppings. Though, there are 8 franchises in Malaysia, but the company has the intention to expand rapidly
The initial capital investment will be around RM 50,000
Franchising fees will be also around 50,000
Sugar bun
Sugar bun is a very famous restaurant in Malaysia, which offers variety of foods to its customers. It has 92 outlets all around the globe, but it is still ready to give its franchise to any potential buyers.
- They take 5% royalty fees
- The franchising fees is around RM 50,000
- Burger Bakar Abang Burn
- They have total 20 outlets in Malaysia and they have started selling from the streets, through which they became very famous with their outclass burgers.
- The capital investment will be around RM85,000
- The franchising feel will be RM15000
- The royalty fees is 5%
Apart from these, there are other restaurant brands as well which are ready to sale their franchise like: daily fresh, each a cup, hot and roll, kyros kebab, boost juice, legend’s clay pot biryani house, D’arab café and so much more. You can also check for the hot selling franchises from www.easybuysellbusiness.com . You can get information about the kind of food business you want to deal with. There are many low cost restaurant franchises available as well. Search the market and choose wisely for your own business.
