30 Popular Malaysian Franchises and How Much They Cost

Buying a franchise can be a convenient alternative to starting a business from scratch. The franchise owner will already have the brand, products, price and marketing materials ready for you to use.

They will even guide you on how to run the business on a day to day basis, which can be an advantage for people with no business experience.

The biggest drawback of buying a franchise is that they can be expensive to set up. Other than spending money to set up the business, you need to pay the franchise owner a franchise fee.

You may have thought about buying a franchise business but are not sure if it is the best option for you.

In this post, I will first explain to you the pros and cons of buying a franchise business as well as thirty popular Malaysian franchises you can buy. By the end of this post, you will be able to decide if buying a franchise is right for you.

Let’s get started.


What is a franchise?

Some of us may already know what a franchise is and how it works. Some others may be new to franchising and want to find out more about it. For those of you who already know, feel free to skip this section. For the rest, let’s continue.

First, what is a franchise?

A franchise is described as

a business system in which private entrepreneurs purchase the rights to open and run a location of a larger company. The franchising company, or franchisor, signs a contractual agreement with the franchisee, explaining in detail the company’s rules for operating the franchise.

When you buy a franchise, you do not need to worry about things like:

  • What products do I sell and how much do I sell them at?
  • What should I call my business?
  • What equipment should I buy for my business?
  • Are people interested in what I sell?
  • What profit margin can I expect from this business?

These are all taken care of by your franchise owner. All you need to do is manage the business. For people who do not want to set up a business from scratch, this can be a big advantage.

While this may make buying a franchise sound like the ideal business, you should consider the cons of buying one before making the decision to buy.

Let’s look at that in the next section.

The Cons of Buying a Franchise

Though the convenience of a franchise can make it an attractive business option, the following disadvantages can make it a less ideal option:

1. Buying a franchise can be expensive. Other than the cost to set up the business, you will need to pay a franchise fee to the franchisor. Depending on how popular the brand is, this fee can be anywhere between US$1,000 to US$3million or more.

Initial setup cost = Franchise Fee + Setup Costs (Equipment, Furniture, Furbishing of Premise)

The final set up cost can easily add up to US$200,000 – 1,000,000 or more. If you do not have enough capital, you may need to get a loan to finance your franchise.

2. Franchises are inflexible. In a franchise, the franchisors dictate how the business is run. You often do not get to say how the marketing for the business is run. Instead, you need to follow the guidelines set by the franchisor or risk having your franchise rights terminated. For business owners who want to be creative, this may feel restrictive.

3. Mistakes made at other branches can destroy your business. Even if only one of the franchise stores makes a mistake, customers may assume that there is a problem with the brand and stop buying from all stores. This means that even if you are doing everything properly, your business can still fail because of what other franchises are doing.

Though there are many disadvantages of buying a franchise, the potential of making a lot of money is huge if you are able to pick a good franchise and manage it well.

Which Franchise Should You Buy? (+30 Malaysian Franchises for you to Pick From)

Your choice on the franchise to buy depends on how much capital you have and what industry you want to be in. To help you with that decision, I have gathered thirty popular Malaysian franchises in six different industries or you to choose from. Malaysian franchises are usually more affordable compared to those from the U.S.

The franchise fee and setup cost information are available for most franchises. Some franchises, however, prefer you to ask them for a customized fee. For franchises where the cost information is not available, I have listed their contact information so you can reach them for a consultation.

Below I have listed them according to their industry. Feel free to click on the industry of your interest to jump right to it.

Let’s get to them!

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Food Franchises

Pappa Rich

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PappaRich offers Malaysian cuisines in a homely ambience. Their menu includes Malaysian staples like nasi lemak, ice kacang, PappaRich outlets can be found all over Malaysia as well as in countries like Australia, Brunei, China, Hong Kong and the United States.

Country of Origin: Malaysia

Franchise Fee: N/A

Initial Capital Investment: RM1.5million (Outlet in Malaysia) / USD1 million (Outlet outside Malaysia)

Royalty: 5% Monthly for 5 years

For more info about franchising PappaRich, click here

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Hot & Roll

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Hot and Roll is a Malaysian franchise that serves hot wraps with a variety of fillings such as Chicken & Cheese, Chicken Floss, BBQ Chicken and Apple Cinnamon. Hot and Roll outlets are available throughout Malaysia, Singapore and the UAE.

Country of Origin: Malaysia

Franchise Fee: RM15,000 – 30,000

Initial Capital Investment: RM100,000 – RM165,000

Royalty: 5% of monthly gross sales

For more info about franchising Hot & Roll, click here.

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MarryBrown

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Marrybrown is a Malaysian fast food chain that serves fast food staples like burgers, french fries and soft drinks. Other than that, they also serve signature Malaysian fusion fast food choices like Nasi Marrybrown which is a modified version of nasi lemak. Marrybrown outlets are available throughout Malaysia,  Indonesia, China, Sri Lanka, Tanzania, UAE, Bahrain, Kuwait, Qatar and Saudi Arabia.

Country of Origin: Malaysia

Franchise Fee: RM80,000

Initial Capital Investment: RM500,000 – 700,000

Royalty: 4% of gross sales

For more info about franchising Marrybrown, click here.

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Big Apple Donuts

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Big Apple is a Malaysian franchise that offers donuts with 24 different types of toppings. Big Apple outlets are all around Malaysia and Cambodia.

Country of Origin: Malaysia

Franchise Fee: USD300,000

Initial Capital Investment: USD1.5 – 3.0 million

Royalty: 5% of monthly gross revenue

For more info about franchising Big Apple Donuts, send an email to franchise@bigappledonuts.com.

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OldTown White Coffee

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Country of Origin: Malaysia

Franchise Fee: RM80,000

Initial Capital Investment: RM700,00 – RM1,000,000

Royalty: 5%

Advertising Fee: 3%

For more info about franchising OldTown White Coffee, click here.

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ChaTime

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ChaTime is a popular Taiwanese bubble tea chain made popular by entrepreneur Bryan Loo. ChaTime outlets are available in 26 countries including the United States, Malaysia, Indonesia, Thailand, the Philippines, Cambodia and more.

Note: ChaTime no longer accepts new franchisees in Malaysia. More info about this here.

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The Chicken Rice Shop

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The Chicken Rice Shop serves Hainanese chicken rice made with their own recipe as well as other Malaysian cuisines. The Chicken Rice Shop has outlets in Malaysia, Australia, Singapore, Indonesia and other ASEAN countries. With more than 80 outlets worldwide, The Chicken Rice Shop is the largest chicken rice restaurant chain in the world.

Country of Origin: Malaysia

Franchise Fee: N/A

Initial Capital Investment: N/A

Royalty: N/A

For more info about franchising The Chicken Rice Shop, click here.

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Nelson’s

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Nelson’s serves popular snacks such as corn in a cup and waffles. Since 1985, Nelson’s now has over 1,000 outlets in 17 countries including China, the Middle East, Brunei and more.

Country of Origin: Malaysia

Franchise Fee: RM5,000 – 12,000 (for 5 years)

Initial Capital Investment: RM15,000 – 60,000

Royalty: No royalty

For more info about franchising Nelson’s, click here.

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CrazyPotato

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Crazy Potato serves UK-style french fries with toppings such as Wasabi Mayo, Sour Creamio, Pickle Mayo and more.

Country of Origin: Malaysia

Franchise Fee: RM50,000

Initial Capital Investment: RM50,000

Royalty: 3%

For more info about franchising Crazy Potatoes, click here.

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Manhattan Fish Market

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The Manhattan Fish Market serves American-style seafood dishes inspired by the Futton Fish Market in Brooklyn.

Country of Origin: Malaysia

Franchise Fee: USD20,000 – 30,000

Initial Capital Investment: USD280,000 – 490,000

Royalty: N/A

For more info about franchising The Manhattan Fish Market, click here.

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Ayam Penyet AP

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Ayam Penyet AP’s signature dish is the Ayam Penyet which is an Indonesian cuisine originated from Surabaya. Ayam Penyet AP has over 30 outlets in Malaysia and one outlet each in Brunei and Myanmar.

Country of Origin: Malaysia

Franchise Fee: RM100,000

Initial Capital Investment: RM577,000 – 752,000

Royalty: N/A

For more info about franchising Ayam Penyet AP, click here.

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Kyros Kebab

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Kyros Kebab serves kebabs (wraps) with fillings like chicken, beef, lamb, jumbo chicken sausage and more. There are over 30 Kyros Kebab outlets in Malaysia.

Country of Origin: Malaysia

Franchise Fee: RM50,000

Initial Capital Investment: RM120,000 – 285,000

Royalty: 5% of monthly gross

For more info about franchising Kyros Kebab, click here.

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Rotiboy

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Rotiboy serves fresh buns and loafs but its signature is the Rotiboy bun, a bun with butter filling and coffee flavoured topping. From its first branch in Bukit Mertajam, Penang (Malaysia) in 1998, Rotiboy has now grown to Dubai, Indonesia, Saudi, Singapore and Thailand.

Country of Origin: Malaysia

Franchise Fee: N/A

Initial Capital Investment: N/A

Royalty: N/A

For more info about franchising Rotiboy, click here.

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SCR (Singapore Chicken Rice)

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SCR serves chicken rice along with other Malaysian cuisines. SCR has over 20 outlets all over Malaysia and two outlets in Brunei.

Country of Origin: Malaysia

Franchise Fee: RM70,000 – 90,000

Initial Capital Investment: RM450,000 – 700,000

Royalty: 4% of Gross Turnover

For more info about franchising SCR, click here.

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Daily Fresh

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DailyFresh sells snacks and desserts like cup corn, waffles, gelato using kiosks. Starting with its first kiosk in Johor, Malaysia, there are now over 800 DailyFresh kiosks in 15 countries including Malaysia, China, Indonesia and Dubai.

Country of Origin: Malaysia

Franchise Fee: RM25,000

Initial Capital Investment: RM85,000 – 120,000

Royalty: 2% Royalty + 3% Advertising Fee from Gross Sales

For more info about franchising DailyFresh, click here.

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Burger Bakar Abang Burn

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Burger Bakar Abang Burn serves Malaysian-style burnt burgers. Burger Bakar Abang Burn has over 20 outlets all over Malaysia.

Country of Origin: Malaysia

Franchise Fee: RM15,000

Initial Capital Investment: RM85,000

Royalty: 5% from monthly gross

For more info about franchising Buger Bakar Abang Burn, click here.

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Assam House

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Assam House serves Ipoh-style Chinese cuisine using its own unique cooking style. Assam House has outlets all over West Malaysia.

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Country of Origin: Malaysia

Franchise Fee: N/A

Initial Capital Investment: N/A

Royalty: N/A

For more info about franchising Assam House, click here.[/su_note]

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Education & Training Franchises

Another popular business category is education and training.

Q-dees

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Q-dees offers “early childhood education by developing holistic, fun-filled programs that are highly effective in stimulating a healthy sense of curiosity, a passion for learning and instilling moral values.”

Country of Origin: Malaysia

Franchise Fee: RM50,000

Initial Capital Investment: RM100,000

Royalty: 5%

For more info about franchising Q-dees, click here.

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Global Art & Creative

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Global Art & Creative offers programs to nurture and develop the creativity of young children. Global Art & Creative now has 550 centers in 13 countries including the US, Myanmar, Hong Kong, Cambodia and Indonesia.

Country of Origin: Malaysia

Franchise Fee: RM20,000

Initial Capital Investment: RM50,000 – 100,000

Royalty: 15%

For more info about franchising Global Art & Creative, click here.

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Smart Reader Kids

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Smart Reader Kids offers early childhood education programs. Smart Reader Kids has 300 franchisees across Malaysia and 100 globally.

Country of Origin: Malaysia

Franchise Fee: RM40,000 – 50,000

Initial Capital Investment: N/A

Royalty: N/A

For more info about franchising Smart Reader Kids, click here.

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Retail Franchises

Vincci

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Vincci is a Malaysian ladies’ footwear brand. Since its inception in 1981, Vincci now has over 100 outlets across South East Asia, the Middle East and North Africa.

Country of Origin: Malaysia

Franchise Fee: RM38,000

Initial Capital Investment: RM400,000

Royalty: 4%

For more info about franchising Vincci, click here.

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Poney

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Poney is a Malaysian kid’s wear brand. Poney outlets are present in all states of Malaysia as well as in countries like China, Singapore, Indonesia, UAE, Iran and Vietnam.

Franchise Fee: N/A

Initial Capital Investment: N/A

Royalty: N/A

For more info about franchising Poney, click here.

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Padini

padini-logo

Paidini is a Malaysian brand that sells men’s and women’s fashionwear and accessories. Padini has outlets all over Asia and the Middle East.

Country of Origin: Malaysia

Franchise Fee: N/A

Initial Capital Investment: N/A

Royalty: N/A

For more info about franchising Padini, click here.

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Ms Read

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Ms. Read is a Malaysian brand that sells plus sized clothing for women. Ms. Read outlets are available in Malaysia and Singapore.

Country of Origin: Malaysia

Franchise Fee: RM60,000

Initial Capital Investment: RM250,000

Royalty: 7%

For more info about franchising Ms. Read, click here.

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SenHeng

senheng-logo

SenHeng sells electronics and gadgets. It has over 100 branches throughout Malaysia.

Franchise Fee: N/A

Initial Capital Investment: N/A

Royalty: N/A

For more info about franchising SenHeng, click here.

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Focus Point

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Focus Point is an optical chain store that started in Johor, Malaysia in 1989. Since then, it has opened over 190 outlets in Malaysia.

Country of Origin: Malaysia

Franchise Fee: RM60,000

Initial Capital Investment: RM400,000 – 500,000

Royalty: 5% of Gross Monthly Sales

For more info about franchising Focus Point, click here.

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Bonia

bonia-logo

Bonia is a luxury fashion retailer specializing in leather goods. It has over 700 sales outlets and 70 boutiques across Asia.

Country of Origin: Malaysia

Franchise Fee: RM20,000

Initial Capital Investment: RM145,000

Royalty: 2% of Gross Monthly Sales

For more info about franchising Focus Point, click here.

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Cleaning Franchises

AquaNano

aquanano-logo

AquaNano is a Malaysian coin-operated laundry chain. There are over 30 AquaNano laundries all over Malaysia.

Country of Origin: Malaysia

Franchise Fee: N/A

Initial Capital Investment: RM76,000 – 125,000

Royalty: No royalty

For more info about franchising AquaNano, click here.

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WonderWash

wonderwash-logo

WonderWash is Singapore’s pioneer coin-operated laundry service. WonderWash has over 30 self-service laundromats around Singapore.

Country of Origin: Malaysia

Franchise Fee: N/A

Initial Capital Investment: RM76,000 – 125,000

Royalty: No royalty

For more info about franchising AquaNano, click here.

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LaundryBar

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LaundryBar is a coin-operated laundry chain in Malaysia. LaundryBar is the first in Malaysia to use hospital food grade detergents, softeners and sanitizers in their washers.

Country of Origin: Malaysia

Franchise Fee: N/A

Initial Capital Investment: RM167,000 – 281,000

Royalty: N/A

For more info about franchising LaundryBar, click here (website) / here (Facebook page) or contact +6012 7411 328

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Mr. Clean

mr-clean-logo

Mr. Clean is a full-fledged laundry service provider offering professional dry cleaning to special fabrics cleaning treatments.

Country of Origin: Malaysia

Franchise Fee: RM50,000

Initial Capital Investment: RM130,000 – 300,000

Royalty: 5% of monthly gross

Advertising fee: 3% of monthly gross

For more info about franchising Mr. Clean, click here

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Gifts Franchises

Memory Lane

memory-lane-logo

Memory Lane is a card and gifts retail chain from Malaysia. Memory Lane has 14 outlets in Malaysia.

Country of Origin: Malaysia

Franchise Fee: RM20,000 – 40,000

Initial Capital Investment: RM139,000 – 276,000

Royalty: 6% of Gross

For more info about franchising Memory Lane, click here.

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Health & Beauty

Clara International

clara-international

Clara International is a Malaysian beauty salon and academy chain. There are over 50 Clara International beauty centers in Malaysia, China, India, Brunei and more.

Country of Origin: Malaysia

Franchise Fee: RM20,000

Initial Capital Investment: RM138,000 – 200,000

Royalty: 1% of monthly gross

Advertising Fee: 3% of monthly gross

Service Fee: 1% of monthly gross

For more info about franchising Clara International, click here.

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Bonus: Franchising Resources

Learn more about the franchises in Malaysia by clicking on the links below:

Malaysia Franchise Association – All franchise businesses in Malaysia must be registered with the Malaysian Franchise Association (MFA)

Malaysian Business Magazine Online (Franchise section) – More details on the cost and requirements of buying franchises in Malaysia

iFranchise Malaysia – A franchise directory for franchises available in Malaysia

Conclusion

Buying a franchise is a convenient alternative to setting up a business from scratch. All you need to do is follow the roadmap and guidelines your franchisor provides you.

The biggest drawback in buying a franchise is that franchises can be very expensive. This may put a financial strain on those who do not have a lot of capital.

Having said that, it is possible to gain a positive and sustainable return if you manage to buy a popular enough franchise and manage it well.

You can consider buying a Malaysian franchise because it is more affordable compared to franchises from the U.S.

Read more:

25 Popular Singaporean Franchises and How Much They Cost

30 Popular Philippines Franchises and How Much They Cost

Did you know it is anyone can sell products on online marketplaces like Lazada and 11Street? Increase your monthly income by learning how to sell on online marketplaces:

Why You Should Sell on Lazada Malaysia and How to Get Started in 2017

Why You Should Sell on 11Street Malaysia and How to Get Started in 2017

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Know a popular franchise from Malaysia that’s not included her? Suggest them in the comments below.

Lu Wee is the Founder of The Entrepreneur Campfire. The Entrepreneur Campfire (TEC) is where smart entrepreneurs in Southeast Asia gather. You can find practical articles on how to grow, market and scale your business on TEC.

14 COMMENTS

    • Hi Amirul,

      As I am aware, Poney and Padini Kids are the only two kid clothing franchises in Malaysia. The other brands you should be able to get supplies of clothes from but they are not for sale as ‘franchises’. For Padini kids, you can use the same contact form as Padini.

      – Lu Wee

    • The information is not publicly available. Go to the link I have provided and send an inquiry to find out.

    • There are a few good local coffee businesses scattered around Malaysia. But most of them have not registered themselves for franchising.

  1. Hi Mr Lu, beside the 3 educational franchise, is they any others education that can share?

    I also interest in online affiliate referrer for local education & Singapore syllabus education , do you have any information?

    • Hi Elaine,

      Do you mean you want to become an affiliate for the educational institutions? Or you are looking for the affiliate in Malaysia?

  2. Hi Mr Lu,
    Is there any franchise for a technology based business such as mobile application or software companies in Malaysia? and any idea whats the franchise cost?

    Thanks

    • Hi Patrick,

      I don’t think so. Normally mobile app and software companies do not use the franchise model to grow their business. They are funded either by their own profits or by capital injections from Venture Capitalists.

      Hope that helps.

      – Lu Wee

  3. Hi there, could you share me how much does it cost to open a Texas Chicken Restaurant franchise in Malaysia? I can’t find one on the internet.

    • Hi Lye Aun,

      This list only includes Made in Malaysia franchises. Cotton On is an Australian brand that I don’t think is using the franchise model to grow. Instead, they might be expanding their brand through JVs. If you are really keen, try to email the HQ and ask if there are opportunities for JV.

      Hope that helps you.

      – Lu Wee

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