UUM

Academy to groom franchise entrepreneurs

By Hamisah Hamid

Published: 2010/07/31

The government will open a franchise academy with an initial investment of RM20 million to train entrepreneurs and industry players in the franchise industry.

Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said by January next year, the academy will take in between 50 and 100 participants for the courses.

He said Perbadanan Nasional Bhd (PNS), an agency under the ministry, is currently working with Universiti Utara Malaysia (UUM) to finalise modules for the courses at the academy.

"The setting up of the academy is to enhance professionalism among players in the franchise industry.

"With the academy, we believe that our journey to make Malaysia the regional franchise hub can be realised," Ismail Sabri told a news conference after launching Franchise International Malaysia (FIM2010) in KL yesterday.

FIM2010, which sees participation of 68 local and international firms occupying 110 exhibition booths, will be held until tomorrow.

Ismail Sabri said the ministry may consider making it compulsory for new franchisees to undergo the franchise courses at the academy.

He said the academy, to be located in the Klang Valley, will offer short-term and long-term courses. The certification will be jointly issued by PNS and UUM.

Fees will be charged for the participants at the academy.

The minister also said that the amendments to the 12-year old Franchise Act 1998 will be tabled at the Parliament in its October session.

The ministry is currently finalising details of the amendments before they are sent to the Attorney-General's Chambers and presented to the Cabinet for approval.

"The amendments seek to make the industry more responsive and in line with the changes in the current environment," he said, adding that the amendments will also provide greater protection for franchisors and franchisees.

He also said that to facilitate businesses in the country, the ministry may reduce further the franchise registration process from 21 days to one week. It has already been cut from two months to three weeks, which resulted in a higher number of franchise registration.

"Up to July 28, we had approved 61 applications for franchise registration, compared with only 27 for the whole of last year," he said.

Since 2000, a total of 454 franchises have been registered, of which two-thirds, or 308 franchises, are local, while the remaining 146 are foreign franchises.

The minister also launched a Franchise Malaysia logo, which will brand homegrown franchises in the international marketplace. It will also enable the public to distinguish between registered franchises and unregistered ones.