Franchise vs Licensing: Which Is Better for Laundry Business in Malaysia


Many investors in Malaysia assume franchise is the only way to start a self-service coin laundry business. However, there is another model that more operators are choosing instead, and it is called licensing.

Why Licensing Works Better

A licensing model gives you the right to use an established brand and system while keeping full control of your business. You set your own pricing, run your own promotions and make your own decisions. Most importantly, you pay a fixed yearly fee and keep 100% of your profit.

Dobi Land operates on this model. Licensing fee is RM10,000 per year with investment starting from RM120,260. No royalties, no revenue sharing and full operational control over your daily laundry business operations.

Why Franchise Costs More Than You Think

A franchise gives you brand recognition but that comes with ongoing costs. Franchise and royalty fees in Malaysia typically range from RM30,000 to RM70,000, with initial investments starting from RM250,000. On top of that, you operate under their rules. Pricing, branding and promotions are not your call.

Those monthly royalties eat directly into your profit margin after paying rent, electricity and water. Over time, the difference adds up significantly.

Equipment Matters

Dobi Land uses Speed Queen and Foggia machines, backed by CS Laundry System which has supplied 2,458 outlets across ASEAN, sold over 22,000 machines and holds 40.1% market share since 1996. That is a track record most franchise brands in Malaysia cannot match.

Quick Comparison

Dobi Land® Licensing  X Brand Franchise 
Fee RM10,000 per year RM30,000 to RM70,000
Investment From RM120,260 From RM250,000
Equipment Speed Queen and Foggia Other brands
Royalties None Varies
Control Full control over pricing, branding and promos Operates under franchise rules and guidelines

 

Franchise works if you want someone else to make the decisions for you. Licensing works if you want to own your business, keep your profits and still have the backing of an experienced industry leader.

Want to know more about Dobi Land's licensing model? Find out more.