Malaysian Franchise Association

[kimmy]

The Malaysian Franchise Association was formed in 1994 to support the implementation of the go~ment program to promote entrepreneurship through franchising. The formation of MFA was indeed timely as to promote the development of franchising in Malaysia.

MFA will serve as a resource center for both current and prospective franchisors and franchisees, as well as for media and the public.

With the formation of MFA, it is hoped that the environment, which is conducive to the expansion of franchising in Malaysia, can be created. MFA has a unique formula of its membership composition. Under one roof are franchisors, would-be franchisors, master franchisees, would-be master franchisees, go~ment agencies and authorities, banks, accounting firms, franchise consultants, attorneys, suppliers and vendor of franchises.

For that matter, everyone involved and would-be involved in franchising are subservient to MFA's Code of Ethics of A Professional Conduct of Franchise Practitioners and MFA enforce this code firmly yet helpfully.

Through the work of its committee, the MFA is committed to continue advancement of franchising in Malaysia into the twenty-first century in line with Vision 2020.

Malaysia Franchise Association : About

The above association is available to help any enterpreneur to get started with franchising business.

[cklam]

Yup, MFA would be a good place to check for franchise information. I myself work with a Franchisor that focuses on Education.

Anyway, not to sway away from the topic. For anyone out there that is planning to take up a franchise, it's one of the method that you can consider. There is a lot of difference between a franchise business vs a license business. For a start, a franchise must be registered with MECD. MFA is just another organisation where they organise events and provide info on what a franchise must do.

So, what is the difference between a franchise vs license. In a license model, it's very similar to what a franchise will do. However, in a licensee model, it's not govern by the law set by the ministry. In another word, its an agreement between the licensee and the licensor. Therefore, in the event of any dispute, you settle it in court.

Whereas in a franchsie, because the business is register with MECD, there are obligations where franchisor and franchisee need to adhere to. Therefore, in the event of any dispute, you make a complaint to MECD and they will jump into action. In the event that the dispute cannot be settle, then you settle it in court. Bear in mind, going to court may not be wise decision as in court, they look at facts, agreement and loopholes. If a franchisor is willing to the extent to go court, it means that they have all the reasonable bullets to shoot you down.

Therefore in a license model, it provides a lot of flexibility but yet it the licensor does not provide a guarantee in written form on what they will provide. Even if they does, it's always very vague.
For a franchise, it's much straight forward. Both the franchisor and franchisee are protected by MECD franchise law. However, it also means that you can't do whatever you want when u take up the business model.