What businesses suit RM50,000 franchise entry?

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The Ministry is Identifying Suitable Businesses for a Lowered RM50,000 Franchise Entry Barrier

The Domestic Trade and Consumer Affairs Ministry (KPDNHEP) is actively exploring which types of businesses are appropriate for a reduced franchise entry barrier set at RM50,000. This initiative is a key component of the National Franchise Development Master Plan (PIPFN) 2021-2025, which aims to foster greater participation from young entrepreneurs in the franchise sector. The ministry is engaging with industry stakeholders to establish the criteria and formulas for this lower barrier, contrasting with the significantly higher figures, often in the hundreds of thousands, required for established brands.
Focus on Domestic Franchise Opportunities

The overarching goal of the PIPFN 2021-2025 is to create more opportunities within the domestic franchise market. This includes specifically identifying business models and brands that can be made accessible to aspiring entrepreneurs with a capital investment of around RM50,000. The ministry's efforts are centred on developing the domestic franchise sector, as highlighted by its secretary-general, Datuk Seri Hasnol Zam Zam Ahmad.
Collaboration with Industry Players

To define the parameters for this RM50,000 entry threshold, KPDNHEP is conducting meetings and discussions with various players within the franchise industry. This collaborative approach is intended to ensure that the formula developed is practical and sustainable, allowing the identified businesses to thrive under the new, more accessible entry conditions. The ministry is collecting information to solidify the framework for the master plan, which is slated for launch before mid-next year.
Encouraging Youth Entrepreneurship

A primary objective behind lowering the franchise entry barrier is to empower the younger generation to enter the business world through franchising. By reducing the financial hurdle, the ministry seeks to open doors for young entrepreneurs who may have innovative ideas but lack the substantial capital typically required for well-known franchise brands. This move is seen as crucial for their involvement in the broader franchise landscape.

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What businesses suit RM50,000 franchise entry?

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