Starting a business through franchising is becoming more common in Malaysia. It can be a good way to reduce the risks commonly associated with start-ups. The Malaysian government has put out an ambitious target for the franchise industry to contribute 9.4% to gross domestic product by 2020. It aims to make Malaysia emerge as a leading franchise hub in the region. Assume that you are planning to start-up a franchise business (choose one company from Part I) in Malaysia which requires a capital of RM1 million. You will be funding RM500,000 from your own savings and a contribution from your family and friends.

You are required to choose two banks in Malaysia and compare its loan schemes for franchise business. Based on the findings, you also have to decide on the best financial institution to borrow money to start-up a franchise business in Malaysia. [30 marks]

the company can be any company for now

two (2) international Franchise business operating in Malaysia.