New franchise term for Malaysia: franchisepreneurs

The launch of Malaysias first FDP took place in Kuala Lumpur this week, the Malaysian Government announces is now to begin the countrys first ( FDP ) franchise development programme and has set aside over RM600 million in investment and loans for ( franchisepreneurs ), a new word in franchising referring to franchisees, franchisors and master franchisees. The funds will be divided into four groups within the franchising industry in Malaysia: Franchisee Financing Scheme, Partnership Franchise Scheme, Mezzanine Franchise Scheme and Smart Budding Franchise Scheme. No final figure has been released on the exact amount each scheme will receive. Three of investment schemes will target franchisors and master franchisees and the finance & loan scheme will target franchisees. The Franchisee Financing Scheme was set up to provide financing to Bumiputera franchisees in starting a franchise and/or new business. Finance ranges from RM20,000 - RM500,000 with a maximum of five years financing. The margin of financing can be up to 80 % of the total project cost and the interest rate is at 4 per cent per annum. But each company has to qualify for a term loan, a company must be 100 % owned by Bumiputeras while a minimum of 51 per cent of its board members and management must be Bumiputeras. The Mezzanine Franchise Scheme is targeted at existing Bumiputera-owned franchise businesses seeking financial assistance for development. Details of the schemes are available on the PNS website.  

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