23/07/2026
STARTING A FRANCHISE IN MALAYSIA REQUIRES MORE THAN CAPITAL.
A recognised brand, operating system, and customer trust can make franchising attractive, but investors still need proper due diligence before signing. Review the full startup budget, franchise fee, royalties, marketing contributions, territory protection, renewal conditions, exit clauses, training support, outlet location, competition, and expected working capital. Malaysia franchise businesses are regulated under the Franchise Act, and the registration process differs for local and foreign franchisors. Foreign brands may need approval before beginning franchise operations, while trademark and intellectual property protection should be checked carefully. The franchisee must also establish the right Malaysian business entity and meet SSM, licensing, tax, accounting, payroll, and ongoing corporate compliance requirements. Many operators use an Sdn. Bhd. structure for limited liability, business credibility, and future expansion, but the right setup depends on the business model and sector. PHP can support Malaysia company incorporation, company secretary services, licensing coordination, accounting, tax, payroll, and cross-border business structuring. Speak with PHP to review the documents and company structure required for your case.