How to do franchise business in Malaysia?

To establish a franchise business in Malaysia, companies must adhere to the Franchise Act 1998, which is regulated by the Ministry of Domestic Trade and Cost of Living (KPDN). With strong experience in providing cross-border business expansion services, we assist customers in establishing scalable and compliant franchise structures in Malaysia.

All foreign and local franchisors have to register the franchise with KPDN's Franchise Development Division before presenting or operating within the Malaysian marketplace. The disclosure document, agreement of franchise, operation manual, training plan, and proof of trademark registration shall accompany the application. Foreign franchisors are also required to select a local representative or master franchisee.

Franchisees are also required to be registered with KPDN before they can carry on business. The franchise agreement must meet the specifications required under Malaysian law, including duration, renewal terms, conditions of termination, and obligations of each party.

Malaysia offers a growing market with a sound legal framework for franchise expansion, most notably in the food & beverage, education, and retail sectors. However, domestic laws need to be approached with care, particularly in language use, conflict resolution, and intellectual property protection.

Having had vast experience in offshore and cross-border franchising, we provide support to businesses from registration up to operational setup. Our services vary from compliance to trademark security, acquisition of partners, and local representation, and we are a smooth and compliant market entry solution for franchisees and franchisors alike in Malaysia.