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2026-10-15 07:55:19 PM Asia Halal journal
Asia Halal

Why Each New Franchise Outlet Needs Its Own Halal Certification in Malaysia

Why Each New Franchise Outlet Needs Its Own Halal Certification in Malaysia

A franchise brand opens its twelfth outlet. The menu, suppliers and central kitchen are the same as at the other eleven, and customers assume the halal status is the same too. Then someone checks the Halal Malaysia Portal, finds eleven certified premises instead of twelve, and posts a screenshot online. By evening, the brand is answering questions it could have anticipated months earlier.

This happens often in Malaysia’s food and beverage sector because many people treat halal status as a property of the brand. Under the Malaysian system it is not. Certification is granted to specific premises after assessment, and each new outlet has to earn its own. For franchisors and chain operators planning expansion, that single fact affects launch timelines, franchise agreements, staffing and customer communication.

Certification attaches to premises, not to a brand

When JAKIM responded to public questions about several popular restaurant chains in September 2024, it made a point that many consumers had missed. Its status checks were based on premises recorded in the MYeHALAL system. Some of the brands concerned held no Malaysian Halal Certificate (SPHM) at all. One chain was found to have valid certificates for four of its outlets only. JAKIM directed the public to verify any premises or product through the official Halal Malaysia Portal.

The lesson for operators is simple. A well-known brand name, a certified central kitchen or halal-certified suppliers do not, on their own, make a new outlet a certified premises. Each branch carries its own certificate, appears separately in the official listing and is assessed in its own right.

It also helps to be clear about the legal backdrop. In 2024, the religious affairs minister stated that halal certification for restaurants and food businesses is currently voluntary. The Cabinet later decided to keep that voluntary policy. Many chains seek certification because Muslim customers expect it. Once a brand chooses that path, it takes on the obligations that come with each certified outlet.

Why a new outlet cannot be certified on opening day

The most common planning mistake is assuming a new outlet can open with certification already in place. Under the Malaysian Halal Certification Procedure Manual (Domestic) 2020, a business making a new SPHM application is expected to have been fully operational for at least three months before applying. After that come document review, a site audit and approval by the certification panel.

In practice, this creates a gap. myBurgerLab, a Klang Valley burger chain, has said publicly that its new stores were certified roughly three to four months after opening. KyoChon Malaysia’s own halal information page describes the same situation. As at August 2026, the company reported 29 of its 35 outlets holding individual certificates, with six newer outlets still completing JAKIM’s outlet audit process.

For an expansion plan, this means every new branch has a period in which it operates under the brand but is not yet a certified premises. That period should be budgeted, staffed and communicated, not discovered after opening.

What changes once a brand becomes a chain

Malaysia’s halal management system treats multi-outlet operators differently from single restaurants. Summaries of the Malaysia Halal Management System (MHMS) 2020 describe the following arrangement for food premises operating three or more outlets under the same brand:

  • They are classed as chain food premises and expected to implement a full Halal Assurance System rather than the simpler internal control system used by small operators.
  • They must appoint a Halal Executive at management or central-kitchen level for each chain brand.
  • They must carry out internal halal audits across all chain outlets, at least annually.
  • They must provide a list of the premises under the same brand or ownership.

Requirements are detailed in JAKIM’s procedure manual, management system documents and subsequent circulars. JAKIM’s portal also publishes dedicated notices on requirements for chain premises and for certification sourced from central kitchens. Operators should confirm the current position against those official documents before planning. They should not rely on summaries, including this one.

The practical implication is that the third outlet is a threshold. A brand moving from two outlets to three is not just adding a branch. It may be moving into a more demanding system, with documentation, committees and audit routines that need to be in place before the expansion, not after it.

A certified central kitchen helps, but it is not outlet certification

Many chains centralise preparation. That makes halal control easier, because ingredients and semi-prepared food come from one controlled source. In 2024, Dolly Dim Sum announced that its central kitchen had received halal certification while its individual branches were still in the certification process. Several other chains made similar statements at the time.

Central-kitchen certification is valuable groundwork, but it covers the kitchen. Each outlet still handles food, stores ingredients, uses equipment, receives deliveries and employs staff. Those are the activities an outlet audit examines. A brand can truthfully say its central kitchen is certified. It should not let that statement be read as a claim that every outlet is certified.

The franchisee question: who controls halal compliance?

For company-owned chains, halal control runs through one management structure. Franchising adds a layer, because each outlet may belong to a separate business owner. Gloria Jean’s Coffees in Malaysia certified 34 outlets in 2025 after a process that began in August 2024. The operator publicly credited close cooperation from its franchisees, which reflects how much depends on them.

Franchisors who want a consistently certified network should consider building halal obligations into the franchise relationship itself. Useful provisions include:

  • Approved supply only: outlets buy ingredients and packaging only from the franchisor’s approved list, with no local substitutions without written approval.
  • Application obligation: the franchisee applies for certification once the outlet becomes eligible and cooperates with audits.
  • Staffing commitments: the outlet meets the staffing requirements that apply to certified premises.
  • Audit access: the franchisor’s internal halal team can audit the outlet as part of the chain’s audit programme.
  • Display and claims control: no use of halal logos, certificates or halal wording until the outlet’s own certificate is issued.
  • Incident reporting: any ingredient issue, supplier change or complaint is reported to the franchisor promptly.

Without these provisions, one non-compliant franchisee can put the credibility of the entire network at risk.

The outlet lifecycle: what to plan at each stage

Stage Outlet’s certification position What to communicate What to prepare
Site selection and fit-out Not certified Nothing about halal status for this outlet yet Layout, storage and equipment planned to meet halal requirements from day one
Opening to first three months Not certified; operating to build eligibility Plain, accurate statements, for example that certification for this outlet is in progress Records of purchasing, receiving, storage and staff training from the first day
Application and audit Under assessment Same as above; no halal logo or borrowed certificate on display Complete application file; staff briefed for the site audit
Certified Certified premises listed on the official portal Display the outlet’s own certificate; customers can verify it Internal audit schedule, renewal date and change-control procedure

What to tell customers while an outlet waits

The September 2024 controversy showed that silence or vague reassurance can damage trust more than an honest status update. Customers who discover an uncertified outlet by themselves tend to assume the worst. Customers who are told plainly that a new branch is completing certification usually understand.

Several practices help:

  • Publish an outlet-level status list on the brand’s website and update it as certificates are issued.
  • Point customers to the Halal Malaysia Portal so they can check each outlet themselves.
  • Never display another outlet’s certificate, or the halal logo, at a branch that does not hold its own certificate.
  • Train frontline staff to answer the question accurately, rather than saying “everything here is halal.”

KyoChon Malaysia’s page is a useful model. It names the outlets still awaiting certification instead of leaving customers to guess.

A pre-opening checklist for each new outlet

  1. Confirm whether this opening moves the brand into, or keeps it within, the chain food premises category, and check the current JAKIM requirements that apply.
  2. Confirm that the chain’s Halal Assurance System, Halal Executive coverage and internal audit programme extend to the new outlet.
  3. Design the fit-out with halal-compliant storage, preparation areas and equipment so that no costly changes are needed after the audit.
  4. Lock the outlet’s supply into approved, certified suppliers and the central kitchen where applicable.
  5. Plan staffing to meet the requirements for certified premises, and complete halal awareness training before opening.
  6. Set a target application date based on the operating period required before a new application.
  7. Prepare customer-facing wording for the pre-certification period and brief staff on it.
  8. Add the outlet to the brand’s public status list, marked as in progress.

When outlet growth becomes a milestone worth documenting

For many F&B brands, the number of outlets is the clearest measure of growth. Reaching a large footprint within a defined market or period is an objectively measurable achievement. Some businesses choose to document such milestones through independent recognition. Asia Record, for example, lists Subway as an Asia Record holder for the largest fast-casual sandwich chain by number of outlets in Asia in 2025.

That kind of recognition is about scale, and it is entirely separate from halal certification. A record for outlet count says nothing about whether any outlet is a certified halal premises. An award or record cannot substitute for an outlet’s own certificate. Customers who want to confirm halal status should always check the official Halal Malaysia Portal. For a halal-certified chain, the two simply measure different things. Certification shows that each outlet meets the applicable halal requirements. A recognised business milestone shows how far the network has grown.

Plan certification into the expansion

The brands that handle multi-outlet halal certification well tend to treat it as part of the expansion plan rather than an administrative step after opening. They know which threshold they are crossing, they build the waiting period into launch timelines, they write halal obligations into franchise agreements, and they tell customers the truth about each outlet’s status. Each new branch then becomes a certified premises in its own right, which is what Muslim customers checking the official listing expect to find.

For related reading, see what Malaysian food businesses should have in place before applying for halal certification, how to manage continuity when a Halal Executive leaves, how restaurant groups maintain operational control while scaling across Asia, and how to verify a Malaysian halal e-certificate.