FRANCHISOR FINANCING SCHEMES
Objective
- To provide financial assistance to franchisors / master franchisees in expanding their business
- To encourage and facilitate more franchisors to venture into international expansion
- To assist franchisors / master franchisees in strengthening their capabilities and capacity in order to adequately support more franchisees
Criteria
- Must be a Sendirian Berhad Company
- Must be registered with Registar of Franchise (ROF) and Malaysian Franchise Association (MFA) as franchisor/master franchisee
- The target company must register profits and positive shareholders' fund in its latest audited accounts
- The target company must have Bumiputera franchisees not less than 30% of the total number of franchisees. The target company should maintain 30% ratio of Bumiputera franchisees throughout the financing period
- Must be clear of any outstanding litigation against the target company, its shareholders and its director
- Preference will be given to franchisors with an affordable franchise package (a franchise package of RM250,000 or less)
Financing
- Mode of financing: Term loan
- Margin of financing: Subject to a gearing ratio of not more than 4 times
- Size of financing: RM100,000 to RM2,000,000
- Interest rate:
- 6% per annum for Bumiputera franchisors/master franchisees
- 8% per annum for non-Bumiputera franchisors/master franchisees
- Maximum tenure: up to 10 years
