Franchisor Financing Scheme

This scheme was established to support franchisors and master franchisees in expanding their business operations in accordance with shariah principles.


Objective

To provide financial assistance to franchisors that wish to grow shariah-compliant businesses.


Eligibility Criteria

  • The franchise business must be registered as a Sendirian Berhad (Private Limited company);
  • The business must be registered with the Registrar of Franchises (ROF) and the Malaysian Franchise Association (MFA);
  • The company must record profits and have positive shareholder funds in its latest audited financial statement;
  • Must operate at least three (3) franchise outlets;
  • The business must be shariah-compliant.
  • Applicant companies, business owners, and shareholders must be in good credit standing and have not been declared bankrupt.
     

Financing Structure

Financing Mode

Islamic Financing Scheme (Tawarruq Concept)

Financing Size

RM100,000 to RM2 million (subject to a gearing ratio not exceeding 4 times)

Financing Tenure

Up to 10 years


Profit Rate

8.00% per annum

Fixed rate with reducing balance calculations with collateral

9.56% per annum

Fixed rate with reducing balance calculations without collateral