THE government has moved to clarify the business structure of MADANI Mart, rejecting claims that it operates as a franchise and requires royalty payments from its operators.
Deputy Domestic Trade and Cost of Living Minister Datuk Dr Fuziah Salleh said the initiative is based on a licensing framework rather than a franchise arrangement.
“It is very clear that it is not a franchise but a licensing structure.
“There are no royalties,” she said in response to allegations that MADANI Mart operators are required to pay ongoing royalty fees.
Fuziah, who is also chairman and founder of Yayasan MADANI, explained that the programme adopts a public-private-social partnership model through a licensing system.
Under this arrangement, the foundation serves as the licensor for branding, concept, and business model, all of which are registered with the Intellectual Property Corporation of Malaysia.
She stressed that the structure does not involve any capital outlay from the foundation, with each outlet fully owned and operated by entrepreneurs under their respective business entities.
To participate, operators are required to meet specific financial commitments, including a one-off licensing fee of RM30,000 and an annual renewal fee of RM5,000.
In addition, a monthly service fee of RM2,000 is imposed, with RM900 allocated for operational support, RM100 for corporate social responsibility initiatives, and RM1,000 covering system maintenance, operational assistance, performance monitoring, and continuous improvements.
Fuziah acknowledged that the provision of branding rights, operational systems, and structured fees may have led to confusion, but reiterated that MADANI Mart does not fall under the legal definition of a franchise. - April 8, 2026
