Franchise Development Assistance Fund
Purpose of Funds
Franchise Development Assistance Fund aims to provide assistance to individual entrepreneurs or local companies in order to ease the burden, provide incentives and encouragement for local franchise and business in Malaysia or overseas. The government does not give full assistance to entrepreneurs. The operators must also produce their own capital to franchise their business. This can be seen as an investment in order to expand the business and to show their commitment to the efforts. Franchise Development Assistance Fund (DBPF) held as an incentive to encourage local entrepreneurs to convert their conventional business franchise business. Through these funds, the business has successfully registered with the Registrar of Franchises ministry as a franchise business (franchisor or master franchisee) are eligible to apply for grants in the form of a refund of up to 90% of the costs incurred to develop the franchise system with maximum RM100,000
Type and Qualification Aid
Production assistance will be made once all the phases are met and in accordance with the eligibility shown scheduled for aid eligibility. Donor is based reimbursement (reimbursement). All claims for reimbursement shall be made by attaching supporting documents certified.
- Open to the franchisors / master franchisees Bumiputera registered according to the Franchise Act 1998.
- The Company’s franchise product / business to a local or master franchisees.
- States must participate in the Franchise Development Programme (FDP) of the Ministry of Domestic Trade, Cooperative and Consumerism
- business format franchise”
- Company began franchised in 1996 and the next alone.
- Companies that register with the Registrar of Companies, Companies Commission of Malaysia.
- Appoint consulting company registered with the Ministry of Finance.
- The Company is not engaged consultants can also apply with a maximum limit of $ 25,000 is prescribed only. Must apply using the application form BPF3
- The company should have appointed at least five (5) Bumiputera franchisees
Conditions of Approval
- The company has been registered in accordance with the requirements of the Franchise Act 1998.
- The company has been certified as a franchisor under the Franchise Development Programme (FDP) after 1996.
- The company registered with the Registrar of Companies, Companies Commission of Malaysia.
- Claims on DBPF must not exceed 2 years from the date of receiving the franchise license
- The company must be owned Malaysian citizen and was a prototype of a viable outlet and having at least 30% of the total Bumiputera franchisees.
- Each company will only be eligible for assistance for one product and get assistance if the product is different then the operator should set up different companies.
- Results of the applicant and the amount of aid eligibility will be considered and decided by the Management Committee DBPF.
Schedule Aid Eligibility
|Status Company/ CategoryClaims||Bumiputera Companies|
Franchise Package Development & Launch Franchise
Phase I: Screening
Phase II: Review of Concepts
Phase III: Review of Concept Prototype Outlet
Phase IV: Franchise Package Preparation
Phase V: Franchise Launch
|Creating Franchisee||40%||Maximum = RM40,000|
- For Category Creation Franchisees, franchisors seeking DBPF each must appoint at least five (5) Bumiputera franchisees;
- The franchisor must appoint more than 5 Bumiputera franchisees to recover the remaining 40% of the total of 10,000 for each additional one (1) Bumiputera franchisees appointed subject to the limits set.
Aid Eligibility Table (Without Consulting)
|Article||The maximum entitlement|
|Fees interior design (prototype outlet)||RM5,000|
|Legal fees (franchise disclosure documents & agreements)||RM5,000|
Applications should be sent to:
Produk Francais Tempatan
Perbadanan Nasional Berhad (PNS)
Aras 13, Menara PNS
Tower 7, Avenue 7
Bangsar South City
No.8, Jalan Kerinchi
59200 Kuala Lumpur
Tel DID: 03- 2082 7882
Tel GL: 03-2082 7788
Faks: 03-2082 7666
Any further questions can be directed to:
Franchise Development Division
Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan
Aras 1, Blok Menara,
No.13, Persiaran Perdana
Presint 2, 62623 Putrajaya
Faks: 03 – 8882 6683