Top 5 Franchises to Own in Malaysia: A Guide for Beginners

Franchises are another golden opportunity to diversify your investments. Also, let’s face it – in this day and age, everyone needs a side hustle, right?

If you’re looking around for ways to own a franchise in Malaysia, look no further! In this guide, we have put together all the essentials you will need in order to consider owning one of the top franchises in Malaysia.

What is a Franchise?

According to the Malaysian Franchise Association, ‘franchising is a method of marketing and distributing product or services based on a two party relationship.’

In this relationship, the franchisor, also known as the owner, grants the right to distribute products or services to the franchisee (you!) who will pay for that right to run the business under the franchisor’s brand, for a given period of time.

For example, you can open a Subway outlet as a franchise. To run this outlet, you will not need to create any new branding, menu, or even systems. All you have to do is to run the outlet using Subway’s pre-existing recipes, systems and so on.

Types of Franchise

There are different types of franchises in Malaysia that you can opt for. Let’s take a look at what they are and how they differ from one another:

Product Distribution

If you were to sell a franchisor’s products without fully adopting their business systems, then you are engaging in a product distribution franchise. The most common example of this arrangement is petrol stations like Petronas or Shell, where the focus is more on the product than the process itself.

Business Format

On the other hand, the business format of franchising is very common in Malaysia. In this arrangement the franchisee (you) gets everything from the franchisors like branding, marketing, business plans, operations support and so on. It’s ready to go and all you have to do is get sufficient training and run the store! Popular examples of these franchises are like Tealive or Marrybrown.

Manufacturing

The manufacturing franchise is not very popular, but it still does exist. Basically franchisors allow franchisees to make/manufacture its products and sell them. A good example of this arrangement is a Coke bottling plant, where the franchisee uses the franchisor’s drink formula and distributes them under stringent quality measures.

Conversion

Conversion is an arrangement where independent businesses adopt a franchisor’s systems and branding to further expand their business. For example, local kindergartens who have rebranded themselves into Smart Reader Kids Centre.

Master Franchise

Last but not least, the master franchise arrangement where franchisees are given multiple outlets in an area, sometimes even a country to run the whole franchise. Due to the complexity of handling such a large network of outlets, master franchises are usually run as a company instead of individually. One such example is Subway which is run by Pegacorn Sdn Bhd, its franchisee for Malaysia.

Top 5 Franchises in Malaysia, Suitable for Beginners

To help you with your research, we have narrowed down to 5 top franchises in Malaysia that you can own.

Mixue Ice Cream & Tea

• Industry: Bubble tea & Desserts
• Initial Investment: Between RM300,000 – RM400,000
• Why is it beginner friendly?

Among young people, Mixue is now a common household name, offering desserts and bubble tea. Thanks to its ‘viral’ element, it quickly rose to become one of the top franchises in Malaysia. With full support and training provided, Mixue is pretty beginner friendly, plus its ultra-recognizable brand is already fully established, making it easy to enter a new location.

Cleanpro Express

• Industry: Coin/Self-service Laundry
• Initial investment: Between RM250,000 – RM 400,000
• Why is it beginner friendly?

Cleanpro offers another passive income opportunity through its franchises in Malaysia. With an initial investment north of RM250,000, this business is beginner friendly thanks to its minimal staff requirement. The built in tech to run these laundry machines also means that there is little hands-on involvement from you, making it pretty easy for beginners to dabble in.

Marrybrown

• Industry: F&B
• Initial investment: RM500,000 -RM700,000
• Why is it beginner friendly?

A fast food joint that is no stranger to Malaysians makes this one a pretty interesting franchise in Malaysia to invest in. Marrybrown has been around for some time now and has become a trusted name in the F&B world. Capital expenditure, or the long term purchase of assets used in business operations like this is higher, due to the nature of the business (F&B). (HSBC,2025) However, the franchise set up does get full support in terms of systems, staff training and so on.

7-Eleven Malaysia

• Industry: Convenience store
• Initial investment : RM250,000 – RM400,000
• Why is it beginner friendly?

7-Eleven is no stranger to us – in fact, it is probably one of the first few convenience stores that we had in Malaysia. With an investment of RM250,000 and above, you can look to get into a 7-Eleven franchise in Malaysia. It is considered beginner friendly since they use the turnkey model to run its operations. Turnkey franchise is ‘a business setup where the franchisor provides a fully operational business package, including comprehensive training, essential equipment, marketing materials, and ongoing support.’ (FranchiseCoach, 2018)

Smart Reader Kids

• Industry: Education
• Initial investment: RM150,000 – RM250,000
• Why is it beginner friendly?

If you want to align yourself to something more than just a business, then why not consider an educational franchise? Smart Reader is one of the best franchises to own in the education space in Malaysia. With an investment of RM150,000 and above, you can set up quality early childhood education even within your own neighbourhood. All things considered, although it is beginner-friendly, this does require a hands-on approach and may not be entirely suitable if you already have a day job.

Pros and Cons of the Franchises

How to Start a Franchise in Malaysia: A Beginner’s Step-by-Step-Guide

Step 1: Understand Your Wants

Not every type of business is suitable for you. Think carefully about what you want, how much involvement would you like on a day to day basis. This will help narrow down your list of franchises that you are considering, aside from what kind of initial investment you can afford. Create a simple list of goals and budget first, while surveying for a list of franchises in Malaysia.

Step 2: Explore Franchise Options

Now that you already considered your goals, explore the list of franchises in Malaysia that will fit your wants and needs. You can consider our five options above or you can also visit the Malaysian Franchise Association’s directory to take a look at the options available.

Step 3: Request Franchise Info

Once you have selected a handful of options, you can proceed to contact them directly. Most franchisors will have their Franchise Disclosure Document (FDD). This document will give you all the details on the business including the fees involved, the business model and operations as well as the expectations.

Step 4: Do Your Homework

This is the point where you carry out your research, so to speak. Try to talk to existing franchisees. Ask about their experiences, what happens on a daily basis and how much support they really receive from the brands.

Step 5: Apply and Get Approved

If you have selected one franchise to go forward with, then you must register your franchise on the MyFEX platform to operate legally. Not only that, some franchisors may also conduct interviews to ensure that franchisees indeed fit their criteria, so just be prepared for that too.

Step 6: Sign the Agreement

If everything goes well, sign the contract, pay the franchise fee and reserve your preferred location to set up your franchise.

Step 7: Register with Authorities (Malaysia only)

In Malaysia, all franchises must be registered under the Franchise Act 1998 with the Ministry of Domestic Trade and Consumer Affairs (MDTCA). This will protect both you and the franchisor. You can always look for a franchise consultant or lawyer to help you through this step.

Step 8: Set Up Your Business

Next, set up your business. Renovate, buy equipment & inventory and other necessary items needed to operate the business. This is also when you carry out hiring if your business requires manpower.

Step 9: Attend Training

Typically, franchisors will be providing you training for operating the business. Usually the key topics would cover operational systems, quality control, customer service, marketing and also finances. If you are not operating this yourself, it is important to involve the key staff that will run this franchise for you.

Step 10: Launch and Run Your Franchise

Finally, it’s time to launch your franchise. Plan a soft launch by promoting your business through local channels or platforms like Grab. Adjust accordingly based on feedback that you receive from your customers.

Read also: Top 9 Challenges To Start A Business in Malaysia

Conclusion

Building a business does not have to be from scratch. If you are looking to start one with lower-risk, then starting a franchise in Malaysia is definitely a viable option.

We have listed the 5 best franchises to own in Malaysia. However, there are so many more that might fit your goals and wants. Nevertheless, irrespective of which franchise you choose to own, remember to do your due diligence and align it to your own availability.