I am going to talk about something a little controversial. The Word “FRANCHISE”.
The word “franchise” is derived from the Anglo-French word meaning “liberty.” In Middle French, it is “franchir”– to free. In Old French, it is “franc,” signifying free. The French term “francis” means granting rights or power to a peasant or serf. The English term “enfranchise” is defined as empowering those who have no rights. The term “Royal Tithes” is the predecessor of royalties, and originated as the practice of certain English men (referred to as “freemen”) receiving a percentage of the land fees paid by serfs to nobility. Throughout history, franchising has promoted economic liberation, synergy, and opportunity, and has been true to its etymological roots – “freeing” commerce from many of the traditional chains that had bound it. Naisbitt’s famous comment in Megatrends is no exaggeration – “Franchising is the single most successful marketing concept ever (https://www.franchise-law.com/franchise-law-overview/a-brief-history-of-franchising.shtml)
Since the originating word, franchise, comes from France, we must understand that every language interprets it differently. In Malaysia’s franchise landscape, one of the biggest sources of confusion comes not from business models, but from language itself. Unlike Bahasa Malaysia, which borrows directly from the French français and therefore carries the same “imported” meaning, Mandarin has no single word that literally means franchise. Instead, two terms are commonly used:
• 特许经营 (tèxǔ jīngyíng) – literally “special permission to operate.” This is the formal/legal term, used in laws, contracts, and government documents. It emphasizes the granting of rights, much like the historical meaning of franchise.
• 连锁 (liánsuǒ) – literally “chain.” This is the more casual, everyday term used in business circles. While it refers to chain operations, it does not fully capture the legal or contractual essence of franchising.
• 加盟 (jiāméng) – literally “to join” or “to become a member.” In business marketing, it is often used to mean “to join a franchise,” but in truth, it is much broader.
Here is where the problem lies: many people conflate franchise with chain. Yet a franchise is not merely a chain — it is a structured system built on legal rights, obligations, and royalties (a concept itself rooted in “royal tithes”). The absence of a precise, universal word in Mandarin means that entrepreneurs, investors, and even regulators may use different terms depending on context, often leading to misunderstandings.
In truth, the word franchise has always carried the sense of granting rights and freeing commerce. Whether in medieval Europe, where liberty was extended to peasants, or in modern business, where opportunities are extended to franchisees, the spirit is the same. The language gap, however, reminds us that clarity matters. Words do not just describe systems, they shape how people perceive and practice them.
In English, 加盟 (jiāmeng) can be translated as join or affiliate. It describes the act of becoming a member of an organization, alliance, or union, and is commonly used in the context of joining a business, like a franchise shop (加盟店, jiāmengdiàn).
This distinction matters. A brochure that says 欢迎加盟! (“Welcome to join us!”) might be inviting investors to become franchisees — or it might simply mean joining as a licensee, distributor, or partner. To the average investor, the line is blurred. But in Malaysia, the law leaves no room for such blurring.
Section 37A of the Franchise Act 1998 is crystal clear: any person who uses the word “franchise” (or any term, abbreviation, or derivative that suggests a franchise business) without registration approval commits an offence. That includes documents, advertisements, and even banners at exhibitions.
And yet, at franchise fairs across the country, misuse is everywhere. A company offering only a basic license markets itself as a “franchise.” Another uses the word 加盟 in Chinese brochures, implying franchising, though it has never been registered. The literal meanings of these words are stretched to create the impression of being a franchise, when in law, they are not.
Why does this matter? Because the word franchise carries legal and financial weight. It signals to investors that the business is regulated, transparent, and offers statutory protections. To mislabel a license, agency, or distributorship as a franchise is to mislead — whether intentionally or by linguistic shortcut.
Organisers of exhibitions must be especially careful. Allowing unregistered businesses to brand themselves as “franchises” — whether in English, Bahasa Malaysia, or Mandarin — not only risks breaching the law but also erodes trust in the entire industry. The fact that Mandarin has no single word for “franchise” is no excuse for misuse. On the contrary, it demands greater precision and responsibility.
At The Franchise Code, we stress:
• 特许经营 is not the complete legal expression of franchising in Malaysia; it must be coupled with 注册 (zhùcè) — registration.
• 加盟 may be acceptable in casual marketing, but only when the business is in fact a registered franchise.
• Investors must be taught that 加盟 ≠ franchise unless supported by registration.
On a lighter note, in Mandarin, foreign words are usually broken down by sound and matched with characters. Since franchise, there isn’t a fixed phonetic transliteration (since the usual translation is 特许经营 (tèxǔ jīngyíng) = “operate under special permission”), but if we only go by sound, it could be rendered something like this:
弗兰柴斯 (Fúlán cháisī)
• 弗兰 (Fúlán) → “FRA-AN”
• 柴 (Chái) → “CHAI” (like chai tea)
• 斯 (Sī) → “SE / S” sound
So, Franchise ≈ 弗兰柴斯 (Fúlán cháisī) in phonetics.
Words matter, and in franchising, the Malaysia concept, wrong word can cost dearly. A “franchise” is not just a marketing label; it is a regulated promise, backed by law and designed to protect both entrepreneurs and investors. Misusing it erodes trust, confuses the market, and invites legal consequences. Exhibition organisers must vet carefully, businesses must register properly, and investors must always verify before they commit. In the end, clarity is not optional, it is the foundation of a credible and trustworthy franchise industry.
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