Singapore Franchise Setup Process in 2025: A Guide by Investment Level

Setting up a franchise in Singapore requires careful planning and systematic execution across multiple phases.

The process varies significantly based on your capital investment level, with different requirements, timelines, and compliance obligations.

This comprehensive guide outlines the complete setup process from initial planning to operational launch.

Understanding Investment Levels and Franchise Examples

The total capital required for a franchise depends on its scale and industry. Below is a breakdown of investment levels and examples:

Note: For the latest updates, please check with the Franchising & Licensing Association of Singapore (FLA).

Business Setup Process

Company Registration with ACRA

Franchise Agreement Execution

• Ensure the agreement includes:
  • Franchise/royalty fees
  • Territory rights and intellectual property usage
  • Termination and post-termination terms
• Legal review is mandatory; for FLA members, key disclosures must be provided seven days before signing.

Licenses and Permits

General Licenses

• Universal Business License (UBL): Apply via GoBusiness
• Food Shop License: Mandatory for F&B franchises, issued by the Singapore Food Agency (SFA)
  • Requires compliance with hygiene, waste management, ventilation, and food handler certifications

Industry-Specific Permits

• Liquor License: For alcohol-serving establishments
• Halal Certification: Issued by MUIS
• Entertainment License: For live music or performances

Financial Setup

Banking Requirements

• Documents Needed:
  • ACRA business profile
  • Board resolution
  • Memorandum and Articles of Association (M&AA)
  • Director identification documents
  • Ultimate Beneficial Owner (UBO) details
• Local directors: 1–7 days processing time
• Foreign directors: 2–4 weeks, physical presence may be required

Funding Options

• Capital Allocation Priorities:
  • Equipment, inventory, and renovation
  • Marketing and branding
  • Staffing and training
  • 6–12 months of working capital
• Government Support Programmes:
  • EFS SME Working Capital Loan: Up to S$500K with 50%-70% government risk-sharing
  • SME loans and sector-specific grants

Location and Setup

Site Selection

• Evaluate location based on demographics, foot traffic, lease terms, and zoning regulations
• Lease agreements typically require:
  • 2–6 months deposit
  • Guarantees and compliance with franchisor standards

Renovation

• Timeline: 4–8 weeks
• Must align with franchisor branding and operational guidelines

Staffing and Training

Hiring

• Staffing needs increase with investment level
• Foreign workers require valid work passes issued by MOM

Training

• Franchisor-led programmes cover:
  • Operational procedures
  • Customer service and sales techniques
  • Financial and marketing strategies
• Focus on staff training for SOPs, hygiene (for F&B), and customer service excellence

Launch Timeline by Investment Level

Critical Mistakes to Avoid

Post-Launch Strategy

Ongoing Obligations

• Submit regular financial reports to the franchisor
• Adhere to quality control and branding standards
• Register for GST if annual revenue exceeds S$1 million

Growth Opportunities

• Track Key Performance Indicators (KPIs) to measure success
• Participate in franchisor-led refresh training programs
• Plan for multi-unit expansion if the initial franchise proves profitable

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Join a global stage filled with over 250 international brands and licensable characters, innovative business concepts, and high-impact exposure. Whether you're launching, expanding, or scaling your business, FLAsia is the platform to connect with serious prospects, build brand visibility, and grow your franchise presence like never before. 

Setting up a franchise in Singapore involves navigating a structured process that varies by investment level.

By understanding the financial requirements, regulatory obligations, and operational nuances, franchisees can position themselves for long-term success.

Key Takeaways:

• Choose a franchise that aligns with your budget and expertise.
• Conduct thorough due diligence and legal reviews before committing.
• Leverage government support programs to ease financial burdens.
• Focus on staff training, customer service, and operational efficiency post-launch.

References:

1. Franchise & Licensing Singapore
2. Franchising In Singapore
3. Enterprise Financing Scheme