Halal Hub - Malaysia

FRANCHISING can help Malaysia become a regional halal hub as the business can grow faster with minimal risk, Francorp Malaysia Sdn Bhd president and chief executive officer Affandy Abdul Raof Faiz said.

Affandy said franchising can take halal products globally because wherever the establishments are, the halal factor of the products or services, will be maintained as franchisees have to follow conditions set in the franchise agreement.

“Franchising also helps minimise a lot of risks as the risk is shared with franchisees."

“All halal establishments should look at franchise to expand their business locally or overseas,” he told Business Times in an interview recently."

Francorp Malaysia is the master franchisee for franchise consultancy group, Francorp USA. Established in April 2004, Francorp Malaysia holds the franchise for Malaysia, Singapore, Thailand and Indonesia.

Affandy said all halal businesses in Malaysia are franchisable but it depends on the owners.

“Many businessmen don’t take the challenge of franchising their business and take it overseas,” he lamented."

Some businesses are family-owned and they are reluctant to franchise their business.

He said franchise opportunities in Malaysia are aplenty as currently franchise only contributes 5 per cent of the total retail sales in the country compared with the US, where franchises contribute 41 per cent of its retail sales.

In the US, eight of 10 retail outlets are franchise stores, compared with only two or three of 10 in Malaysia.

Posted by Christopher James Conner