MICRO, AFFORDABLE FRANCHISE MODEL
Ministry wants youth, M40 and B40 groups to venture into such businesses
THE Domestic Trade and Consumer Affairs Ministry is encouraging business owners to expand through micro-and affordable franchise models.
Deputy minister Datuk Rosol Wahid said micro- and affordable-franchise concepts that were vigorously promoted by the ministry would not only provide business owners a chance to expand their businesses, but create more franchise entrepreneurs among the younger generation.
Rosol said the ministry also called on existing franchisors to introduce new franchise packages at a lower start-up capital and franchise package fee to encourage the younger generation, as well as those from the Middle 40 and Bottom 40 groups to venture into such businesses.
He stressed that the ministry was serious in efforts to develop franchise businesses, especially through micro-and affordable franchise models as these required lower start-up capital and franchise package fees; below RM100,000 for affordable franchises and RM50,000 for microfranchises.
He said the ministry allocated RM5 million this year to implement various micro- and affordable-franchise development programmes, including training, advocacy and advisory services for franchisors and franchisees.
“So far, there are several popular business brands that have come to us to expand their business through microand affordable-franchise models, such as CheeseU, Putu Bambu World, Dapur Penyet and Kopi Satu.
“The ministry welcomes more businesses to expand their dominance through this model, which will help open up opportunities, especially to the younger generation, to make the franchise business as a branch of economic return.
“Due to the pandemic, many have lost their jobs and sources of income.
“So with efforts to boost this micro- and affordable-franchise business model, it can open business and employment opportunities to young people as well as the M40 and B40 groups.”
He added that the ministry was aware that initial capital burdens and high franchise package costs were among issues faced by those who wanted to venture into franchise businesses. Therefore, promoting micro and affordable models would ensure existing businesses grew while more business and employment opportunities were created.
He said this after visiting the CheeseU franchise kiosk at the Finance Ministry here, which is the first kiosk for the business brand under the micro- and affordable-franchise programme, with a cost of below RM100,000.
This kiosk is the result of cooperation between the Domestic Trade and Consumer Affairs Ministry and Perbadanan Putrajaya under the Young Entrepreneur Development Programme implemented by the Federal Territories Ministry.
Also present were Domestic Trade and Consumer Affairs Ministry secretary-general Datuk Seri Hasnol Zam Zam Ahmad, deputy secretary-general Dr Alauddin Sidal, Malaysian Franchise Association chairman Datuk Dr Radzali Hassan and CheeseU chief executive officer Thomas Ang.