Perbadanan Nasional sees big push in services franchise

Managing Director Syed Kamarulzaman Syed Zainal Khodki Shahabudin said the industry's growth globally showed there was strong demand from people interested in getting fit.

"The fitness franchise in the United States has grown tremendously as people are concern about being fit and healthy. I honestly believe that even in Malaysia, the new trend is that people are health conscious.

"So, fitness will be something people will look at," he told Bernama.

In line with this, Syed Kamarulzaman expects healthy food franchising will also gain traction.

"Maybe in the near future, if you talk about food and beverages, people will be talking about healthy food and clean outlets and that's where we are going. If you take a snapshot on what's happening in Australia, for example, you will see a combination of food and beverages and services industry," he said.

Syed Kamarulzaman said the food and beverage franchise holds the largest market pie with more than 30 per cent of the franchise market share.

Most of the food and beverage franchisees are engaged in the fast-food business like Burger King, McDonald's and Big Apple Donut, while the next largest franchise industry segment is apparels and accessories, which accounts for half of the food and beverage market share.

Overall, there are some 650 local and foreign franchises registered in Malaysia and 47 local franchises have venture abroad, with more than 1,400 franchisee.

By year-end, Perbadanan Nasional is expecting about 150 franchise business to be certified with star-rating, Syed Kamarulzaman said.

"By rating the franchise business, we will be able to understand weaknesses in their businesses and look at how we can assist in strengthening them.

"These are ongoing measures. We will keep on rating the franchise business to see whether they improve or not," he said.