COURSE SYLLABUS

UNIVERSITI UTARA MALAYSIA

SCHOOL OF BUSINESS MANAGEMENT (SBM)
COLLEGE OF BUSINESS [COB]

COURSE CODE: BPME 3023

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COURSE NAME: FRANCHISE BUSINESS MANAGEMENT

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PREREQUISITE: NOT REQUIRED

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1.0 SYNOPSIS rs e
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The aims of this course is to provide the students with the fundamental knowledge of
franchise business management through theoretical and practical. By exploring the
process, the students will recognizing, understanding and developing the basic skill of
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knowing in various aspects of franchise business system. The students will be exposed
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to the concepts and definition, the history and the development of franchise industry
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especially in Malaysia, the obligations of franchisor and franchisee, and the franchise
law through Franchise Act 1998 (Amenment 2012). Since the international image is
important for branding, the franchise strategy of business expansion will be learned in
end part of this course.
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2.0 COURSE OBJECTIVES

At the end of this course, the students should be able:

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2.1 To understand the basic concepts of franchise business.

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2.2 To understand the advantages and disadvantages of franchise business.

2.3 To demonstrate the importance of franchisor and franchisee’s obligations.
2.4 To examine the various sections in Franchise Act 1998 (Amendment 2012).
2.5 To discuss the franchise business expansion strategy to penetrate international
market.

3.0 COURSE LEARNING OUTCOMES

At the end of this course, the students should be able to:

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 3.1 Understand the importance of franchise business as a future career
development.
3.2 Decide whether to be involved in franchise business as a potential franchisee.
3.2 Discuss the importance of Franchise Act 1998 (Amendment 2012) in managing
issues in franchise business.

4.0 REFERENCES

4.1 Main Reference:

Mohamad Yusop Mohd. Jani (2016). Franchising: Theory, Concept and Practice.
Compiled Modul 4th Edition. Sintok: UniversitiUtara Malaysia.

4.2 Other References:

4.2.1 Awalan Abdul Aziz (1999). PerniagaanFrancais di Malaysia:

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Perspektif dan Panduan. PersatuanFrancais Malaysia.

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4.2.2 Adnan Alias &Zainab Ahmad (2002). KesediaanFrancaisor dan

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Francaisi. PersatuanFrancais Malaysia (MFA).

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4.2.3
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AktaFrancais 1998 (Akta 590) . International Law Book Services.
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4.2.4 Justis, R.T & Judd, J. (2003).Franchising. Thomson - Custom
Publishing
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4.2.5 Justis, R.T. & Vincent, W.S. (2001). Achieving Wealth Through
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Franchising. A Comprehensive Manual to Finding, Starting, and

Succeeding in a Franchise Business. United States of America. A
Streetwise Publication.
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4.2.6 LexisNexis (2004). Developing and Managing a Franchise. Utopia

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Press Pte Ltd. Singapore.

4.2.7 Mathews, J., Debolt, D. & Percival, D. (2006). Street smart

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franchising. Canada: Entrepreneur Press.

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4.2.8 Mendelsohn M. (2004). The Guide to Franchising. 7th Edition:

Thomson.

4.2.9 Miranda G. (2002). Franchising: A Guide to a Successful Franchise

Business. Leeds Publications

4.2.10 Noraini Ibrahim (2002). Industri Francais dan Pembangunan Malaysia,

Singapura dan Indonesia. AnalisisStrategik. EdisiKedua:
UniversitiKebangsaan Malaysia.

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 4.2.11 Shane S.A. (2005). From Ice Cream to the Internet. Using Franchising
to Drive the Growth and Profits of your Company. Pearson Prentice
Hall.

4.2.12 Spinelli, S., Rosenberg R.M. & Birley S. (2004). Franchising Pathway
to Wealth Creation. Pearson Prentice Hall.

Website:

1. http://www.mfa.org.my/ (Malaysia Franchise Association)

2. http://www.pns.com.my (PerbadananNasionalBerhad)
3. http://www.mecd.gov.my (BahagianFrancais dan Vendor)
4. http://www.fca.com.au (Franchise Council of Australia Ltd)
5. http://1ds.co.uk/franchise/BFA (British Franchise Association)
6. http://www.franchise.org (International Franchise Association)

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5.0 TABLE OF CONTENT

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NO TOPIC HOUR

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1 1.0 Franchising - Introduction
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1.1 Franchising definition and concepts 3
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1.2 History of franchising
1.3 Theory of franchising
1.4 Why business is franchised?
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2 2.0 Franchising Industry in Malaysia

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2.1 The development of franchising industry

2.2 Franchise Development Programme
2.3 Franchise agencies and its role (KPDNKK, PNS, MFA) 3
2.4 Franchise activities
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2.5 Franchise Development Strategy

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2.6 Franchisor and franchisee Financial Scheme

3 3.0 Franchising Concepts

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3.1 Types of franchising 3

3.2 The advantages and disadvantages of franchising
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3.3 Business concepts can be franchised

4 4.0 Franchisor Management and Organization

4.1 Franchisor development process
4.2 The franchise PERT chart 3
4.3 Determination of franchise fee and royalty rate
4.4 Recruiting, selecting and managing franchisees
4.5 Franchisee selection considerations

5 5.0 Territorial Strategies

5.1 Multiunit Franchising
5.1.1 Master Franchising 3

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 NO TOPIC HOUR
5.1.2 Area Development
5.1.3 Subfranchising
5.2 Exclusive Territories

6 6.0 Location and Site Selection

6.1 Geographic selection – The Location Model 3
6.2 Development of target trade area
6.3 Franchise site selection

7 7.0 Preparation to be a Franchisee

7.1 Fundamental consideration before becoming a franchisee
7.2 Steps before becoming a franchisee
7.3 Self-evaluation 3
7.4 Do Selection
7.5 Start business

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8 8.0 Franchise Legal Documents
8.1 Introduction to Franchise Act 1998 (Amendment 2012)

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8.2 Disclosure Document (UFOC)
8.3 The Franchise Agreement

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8.4 Intellectual Property and its importance 3
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9 9.0 Franchisor’s and Franchisee’s Obligation
9.1 Franchisor’s Obligation
9.1.1 Promotional Package
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9.1.2 Operations Package

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9.1.3 Training
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9.1.4 Operation Manual 3

9.1.5 Advertisement and Promotion
9.1.6 Site Selection
9.2 Franchisee’s Obligation
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9.2.1 Business commitment

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9.2.2 Follow the system

9.2.3 Reporting information
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10 10.0 The Franchising Relationship

10.1 Phases of franchising relationship
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10.2 Causes of conflict

10.3 Managing conflict 3
10.4 C.A.R.E approach
10.5 Conflict: Mediation and Arbitration

11 11.0 Franchisor Support Services

11.1 Franchisee support
11.1.1 Profitability
11.1.2 Self-employment
11.1.3 Striving to be successful 3
11.1.4 Opportunity for growth
11.2 Communication

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 NO TOPIC HOUR
11.3 The field representative
11.4 Franchisee training

12 12.0 International Franchising

12.1 Method to international franchising
12.2 Co-branding 3
12.3 Hindrances to international franchising
13 13.0 Business Case Presentation 6

TOTAL 42
HOURS

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6.0 TEACHING METHOD

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Lecture and class discussion
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7.0 EVALUATION
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Course Work : 60%

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 Mid-semester Examination (25%)

 Assignment (35%)
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- Assignment (30%)
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- Presentation (5%)
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Final Exam : 40%

Total : 100%

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