A. FRANCHISORS AND MASTER FRANCHISES

I. INVESTMENT IN MEZZANINE FRANCHISE SCHEME

This scheme is to cater for existing Bumiputera-owned franchise businesses that seek financial assistance for expansion purposes.

CRITERIA OF TARGET COMPANIES

• Registered with Registrar of Franchise (ROF) and Malaysian Franchise Association (MFA) as a franchisor / master franchisee / franchisee to a foreign franchisor 51% equity owned by Bumiputeras 51% of BOD and management are Bumiputeras Minimum of 2 years' uninterrupted Profit After Tax (PAT) track record Minimum PAT of RM500,000 for recent financial year
• Minimum shareholders' funds of RM3.0 million

INVESTMENT STRUCTURE

• To subscribe Ordinary Shares only or combination of Ordinary Shares and 5% Cumulative Redeemable Convertible Preference Shares (CRCPS)

SIZE OF INVESTMENT

• Ordinary Shares: minimum of 30% and maximum of 49% equity interest in target company or RM10 million, whichever is lower
• Preference Shares: minimum of RM1 million and maximum of RM5 million, subject to a gearing ratio of 2.0 times

TENURE OF INVESTMENT

• Ordinary Shares: Maximum of 4 years.
• Preferences Shares: Maximum of 5 years