Franchise Industry Grows by 220%

The franchise industry is growing at a rapid pace when a total of 96 franchise companies have been registered with the Ministry of Domestic Trade,Cooperatives and Consumerism  as compared to only 30 companies in 2009.
 
The minister, Datuk Seri Ismail Sabri Yaakob said, an increase of 220 percent is very encouraging and from January to June this year, the ministry approved 46 franchise companies with the overall registration of the company so far up to 538.

He said they were targeting a total of 80 franchise companies to be registered by the end of this year.
 
"This shows that the franchise industry has much potential to continue its success and to further expand internationally.

"So far, 35 local franchise companies have successfully expanded their business to 53 foreign countries including countries in Asia and the Middle East.  "We are also leaders in terms of the numbers of franchisors in China (16 franchisors) and Indonesia (18 franchisors)," he said.

He was speaking at a press conference after a dialogue with franchisors and franchisees at the Putra World Trade Centre (PWTC).

The minister stated that the education and learning industry such as child care centers and nurseries are now considered as having the most potential to succeed, including beauty centers.

"Most entrepreneurs are involved in the food and beverage business in which 32 percent (174 entrepreneurs) out of 538 registered franchisees choose this field.

"It is then followed by clothing and accessories (14 percent), learning centers and child care (11 percent), service and maintenance (10 percent), beauty treatment centers(10 percent), information and communication technology (5 percent) and convenience stores or supermarkets (3 percent), "he said.

He also advises traders who are interested and existing entrepreneurs to diversify their scope of business, beyond F&B (food and beverage) to compete with other franchisees locally and abroad.