Everyone has heard of the franchise system; from what we understand, franchises are typically associated to food and drinks, ranging from multinational names such as McDonald’s, KFC, Domino Pizza, and Burger King to local franchise restaurants such as Old Town and Pappa Rich…
IPM Professional Services is described as Malaysia’s first professional engineering consulting firm to be granted a franchise license. The company was established in 2008 and operates as a consultancy organization, offering a range of services including engineering consultancy, architectural consultancy, master planning consultancy, and cost planning consultancy.
Franchising is a business model that allows a company (the franchisor) to expand its brand and operations by granting the rights to other individuals or businesses (the franchisees) to operate under its established brand name and business system. The franchisee pays a fee or royalty to the franchisor in exchange for the right to use the brand, receive training and support, and benefit from the established business model.
By adopting the franchising model, IPM Professional Services can extend its business coverage and reach new markets by partnering with franchisees. This approach offers business opportunities to individuals or companies who are interested in starting their own engineering consulting business but want to leverage the expertise, reputation, and support of an established firm like IPM.
The decision to franchise can be beneficial for both IPM Professional Services and the franchisees. For IPM, it allows them to expand their brand presence and generate additional revenue streams through franchise fees and royalties. It also enables them to maintain control over the quality and standards of their services by providing training and support to the franchisees.
On the other hand, franchisees benefit from the association with an established brand, which can provide them with a competitive edge in the market. They also receive training and support from IPM, which can help them navigate the complexities of the engineering consulting industry and establish their business more effectively.
Overall, IPM Professional Services’ adoption of the franchising model in the engineering consulting sector demonstrates the versatility of the franchise business model. It shows that franchising can be applied to various industries, including professional services, and presents new opportunities for both the franchisor and franchisees to grow and succeed in their respective markets.
IPM Professional Services Sdn Bhd - Engineering & Architectural Firm Malaysia
IPM aspires to be ASEAN’s largest professional consultation firm in the building and construction industry, contributing to the region’s great civilization. IPM’s business strategy focuses on increasing their network in the ASEAN area through franchise. The franchise business model, according to IPM, is a win-win situation for both IPM and franchisees, as franchisees receive assistance and guidance from IPM to grow their own Engineering Consultancy Practise (ECP) firms, while IPM receives royalty as recompense.
IPM have built up a strong foundation in their central management Hub. With their resources and expertise, IPM able to ensure a successful combination of keeping overheads to a minimum and fully supporting their chain offices and franchisees.