This scheme is to cater for new Bumiputera owned franchisors and master franchisees or existing businesses that have potential to be converted into franchise businesses.
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
Target company to set up at least 1 prototype business that has been in operation for at least 6 months
Target company's Total Borrowings + Preference Shares to be subscribed by PNS shall not exceed 4 times of its shareholders' funds
Investment Structure
To subscribe a combination of Ordinary Shares and 5% Cumulative Redeemable Convertible Preference Shares (CRCPS)
Size Of Investment
Maximum of 49% equity interest for ordinary shares and maximum investment allowed is RM5.0 million
Govt expects franchise industry to comprise 9.4% of GDP by 2020
10 January 2012, KUALA LUMPUR :The Domestic Trade, Co-operatives and Consumerism Ministry expects the franchise industry to make up 9.4% of the country's gross domestic products (GDP) by 2020.....