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1.1PREFATORY STATEMENTS

On behalf of Ar-Rahnu franchise, we would like to express thanks and magnanimity on the
commitment of all franchisees to mutually together grow and develop Ar-Rahnu franchise
business. Congratulations to the Cooperative to make the correct decision to involve in this
industry which has high potential besides promising high yield and returns.

The preparation of this manual is to form a guideline which must be adhered by all franchisees in
managing their business operations. The scope of this manual encompasses and is based on daily
work processes and internal controls which are hoped will assist the franchise to operate with
greater confidence and smoothness in attaining business objectives. It is congruent and in tandem
with desire of the Franchisor management to guarantee high safety and security besides
minimizing risk on our franchise business. We believe that the comprehensive internal controls
will directly elevate the confidence level of customers and trust in the branding and name of our
Ar-Rahnu franchise.

This operations manual will be improvised and edited from time to time for every change and
addition on product characteristics and work process and every change will be informed and
acknowledged to all franchisees. We hope all staff personnel of the franchisee will follow every
policy and work procedure contained in this manual to attain the objectives indicated.

As an endnote, we wish progress and success to all of you from us.

2.1 WAY TO USE THIS MANUAL

The objective of producing this manual is to:

• Prepare an updated contemporary reference for starting a Ar-Rahnu franchise business

• To guide and nurture you about the tasks which are compulsory during the opening of a
Ar-Rahnu franchise outlet.

GUIDELINES

Every section has an official approach or guideline which has been set to found a Ar-Rahnu
franchise shop. These guidelines aim to assist you in implementing your tasks.

PROCEDURES

Comprehensive explanations are found in the section on workflow and procedures will assist you
to implement your tasks.

The Ar-Rahnu franchise operation must have a management control company to coordinate and
administer all the various franchise outlets and liaise between the Franchisor and franchisees.
ORGANIZATIONAL CHART

Ar-Rahnu franchise is established to offer Islamic pawnbroking services as an alternative to

instant cash facility. Based on this principle, the franchisor party has established a good work
culture to assist the franchisees to achieve excellent prestige.

AR-RAHNU X’CHANGE CULTURE

We must do our utmost best to instill and inculcate a good working culture among Ar-Rahnu
X’Change staff so as to ensure that the identity and reputation is maintained. We believe that if
we take care and value our staff, they will perform service with distinction and full dedication
and their contributions will be high and substantial. Our staff and human resources are our most
valued assets and thus we will contribute towards organization of training, developing and
inspiring the staff to achieve greater levels of performance for the company and individual
success. For us, the staff is not just a worker but also part of the family, mutually helping and
sharing good values for success and glory.

OPEN COMMUNICATION

For us, input and feedback from staff are important. We encourage all staff to communicate
openly within departments and with heads and colleagues. For facilitated communication among
staff, we use email.

RESPECT

Respect is important to maintain relationship. Our staff are trained to respect each other firstly,
understand and value each other as competent and talented individuals who will effect change
and contribute positively to corporate and individual growth. Our staff members are trained to
respect and take our customers, suppliers and any related parties seriously.

INTEGRITY

Integrity is the main pillar of the corporation. Without integrity, the corporation will not be able
to garner belief and confidence of customers to sustain business relationships.

EFFECTIVENESS

We carry out our duties with full dedication and effectiveness which will instill trust in the
company.

EFFICIENCY

Work effectiveness without efficiency is not fruitful. Work efficiency is important in ensuring
that work is committed and completed within the allotted time.

SOCIAL CORDIALITY & ETIQUETTE

Staff must be cordial and friendly among colleagues and customers. Smiling and social grace is a
bonus in delivering quality service.

ORGANIZATIONAL FUNCTION OF AR-RAHNU MANAGEMENT COMPANY

1. Sales & Marketing

i. Building & implementing advertising and marketing programs

ii. Recruiting franchisees

iii. Assisting franchisees in marketing planning

iv. Market observation and control marketing budget

v. Troubleshooting marketing operational issues

vi. Market research to optimize profit yield

vii. Market profiling of customers & customer needs

2. Operations

i. Assist franchisees in locating and selecting strategic locations for outlet, floor
planning, renovation and operational plan

ii. Troubleshoot teething issues of outlet & setting the regular operations of outlet

iii. Familiarizing new staff with environment and operation aspects

3. Training & Development

i. Training staff in operational and marketing aspects of Ar-Rahnu pawn-broking

ii. Monthly seminars for staff familiarization with procedures and rules

iii. Research and development program to enhance staff efficiency

 iv. IT training and improvement

IMPORTANT TELEPHONE NUMBERS

EMERGENCY NUMBERS

Ambulance/Police 999

Fireman 994

Public Defence 991

Fixed by Ar-Rahnu Exchange Franchise

Hospital

Clinic

Police Station

Insurance Agent

Insurance Principal

Computer Supplies Company

Management Services Company

Ar-Rahnu Exchange applies open concept. Franchises are advised to call the management
services company for any enquiries and assistance.

Whom to Call When to Call Telephone Number

General Manager Issues which require

immediate action and
problems related to franchise
management

Marketing & Sales Manager Issues regarding franchise

location choice, promotion,
marketing program,
advertising and franchise
 development

Operations Manager Issues regarding franchise

operation and franchise
manual

4.1 DURATION FOR OPENING SHOP OUTLET

Ar-Rahnu franchise shop will take about 2 months to build up after the location choice is
decided.

Duration:

Duty/Month 1 2

Shop Renovation Works

Plan Drawing

Local Authority consent

Tile and pipe installation

Lighting & electrical wiring

Paint & wall refurbishment

Purchase of shop equipment &

stationery

Installation of 2 racks, cabinet

and counter

Strongroom

Installation of computer
system

Cleaning & clearing works

Duty/Month 1 2
Advertising & licensing

Designing advertisement &

signboard to be placed inside
(if any)

If needed to obtain license to

operate and display signboard
from the local authority

After receiving consent,

contact the contractor to order
advertisement and signboard

Display advertisement and

signboard

Duty/Month 1 2

Staffing

Remunerating staff

Preparing offer
letters/appointment of every
staff and cooperating with
EPF, SOCSO and PERKESO

Staff Training

5.1 ANALYSIS AND CRITERIA FOR ASSESSING LOCATION OF SHOP

1. Each outlet must be within a certain radius parameter of each other to avoid proximity
depending on density of population and convenience

2. The Franchisor representative will personally evaluate the suitability of the potential site
location and the Franchisor will maintain the prerogative on choice of location.

3. Criterion is based on the following factors:

 i. Customer

ii. Population

iii. Visitor

iv. Safety

v. Transport

vi. Carpark

vii. Convenience

viii. Visibility

ix. Size of premises

x. Surrounding business

xi. Overall valuation of holistic factors

The Ar-Rahnu franchisees can make suggestions for location of franchise outlet. Nevertheless,
the franchisor will send his representative to value and assess all locations before making a
decision. The final decision is in the hands of the Franchisor.

REVIEW

The assessment of a location is based on review undertaken to understand the demographic

scenario and economy of the designated area.

• Review of customers

• Review of inhabitants

• Review of visitors

• Review of safety and security

The assessment is based on the following criteria:

TRANSPORT SYSTEM

Ease of reaching the recommended location through effective public transport system and routes

VEHICLE PARKING SYSTEM

The number of carparks and current system usage;

EASE OF FINDING AND VISIBILITY

Location must be easily found and is visible/can be sighted or seen (not hidden).

SIZE

The area size of the premises

BUSINESS ENVIRONS AND SURROUNDINGS

Must take account the types of business in the surrounding recommended location to ascertain
whether the commerce and business around can complement the Ar-Rahnu franchise shop
business or will create obstacle to Ar-Rahnu franchise opportunity to engender profit
possibilities.

ASSESSMENT
The assessment of the location is based on the accumulated and collected data and detailed report
arising. Based on the said report, the management party will make a decision whether to approve
or not.

Section: Location Analysis Form.

6.1 LOCAL AUTHORITIES

It is important to obtain a list of the local authorities. See addendum for a list of local authorities,
address and telephone numbers.

6.2 PAWNBROKING BUSINESS LICENSE

If the franchisee is an individual, he must:

• Call the local authorities to obtain information about pawnbroking license.

The list of licenses required is:

1. Pawnbroking license

2. Advertising license

Note:

1. Two licenses will be required ie pawn-broking license & advertisement license

2. Must obtain license to operate pawn shop from local council for individual license holder
& not corporate license holder
 3. Book order signboards and buntings, corporate logo, shop front design & pamphlets

6.3 ORDER FOR SIGN BOARD/APPLYING FOR PERMIT

• You need a sign board when you are appointed as Ar-Rahnu franchisee. The Franchisor
will help you to order the uniform sign board

• The Ar-Rahnu franchisee must pay all expenses for sign board and name board

APPLYING FOR PERMIT

Every sign board must have license or permit from the local authority. After obtaining the art
drawing (design) from the Franchisor, the Ar-Rahnu franchisee must:

• Apply to obtain license/permit from the local authority

The Franchisor will prepare the guidelines necessary for application to obtain permit.

Note:

1. Every signboard must have license or permit from the local council to approve the design
and size of display

2. The signboard and any shop display must obtain the approval of the franchisor including
the measurements, size of photos where required

3. Without the local council permit, the franchisee will bear cost of fine for infringement

4. A copy of the local council approval letter/permit must be kept in franchisee’s premises
and a copy faxed or provided to the franchisor

5. The franchisee must call the local council to obtain information on regulations on
advertisement
 6. Every intended advertisement must be approved by the franchisor

7. Every name or call card must also be pre-approved by the franchisor

8. All stationery and marketing costs are borne by the franchisee

MEASUREMENT

• Prepare the accurate measurement of area parameter for the sign board

PHOTO

• Take photo of the front of the outside of the shop premises where the signboard is placed

It is an offence to display the signboard without license approved by the local authority and
you will be penalized if found to break the regulations set.

After obtaining the approval from the local authority, the Ar-Rahnu franchisee must:

• Fax or send the copy of license/permit approved by the local authority

6.0 BEGINNING THE BUSINESS

6.4 LOCAL LAWS – ADVERTISING

Every district has its distinct local regulations which vary for advertising. The Ar-Rahnu
franchisee is obliged to:
 • Call the local authority to obtain information about regulations for advertising

• Every advertisement must be approved by the Franchisor

6.5 OPENING BANK ACCOUNT

You are obliged to open current account and this account must be used solely for Ar-Rahnu
franchise business only.

For application to open current account, you must prepare:

• Copy of business registration form A& D

• Copy of franchisee identity card

• Business Company chop (you must use the same chop for the cheque book which will be
produced by the bank)

• Cash or cheque to be deposited as initial deposit (varies according to different Bank

requirements)

As an Ar-Rahnu franchisee, you are advised to open account with the Franchisor banker.

6.6 BUSINESS NAME CARD AND STATIONERY

The Ar-Rahnu Franchisee must order business name card and stationery via the Franchisor. The
guidelines for name card design and writing equipment and stationery will be prepared by the
Franchisor based on the Corporate Identity Manual.
All expenses will be borne by and remain the responsibility of the Franchisee.

Note: kindly refer to the Corporate Identity Section.

6.7 BUSINESS INSURANCE

The Ar-Rahnu Franchisee is advised to buy Takaful protection insurance to protect the premises,
pawned goods and other assets in the unexpected event like robbery and fire.

Call the Takaful insurance agent to buy the comprehensive coverage policy. The Franchisor will
prepare a list of qualified and competent insurance agents to facilitate the franchisee.

• Name the Franchisor as the introducer/beneficiary

• Send the copy of the cover note and policy to the management control company
(administration company) for retention record.

Franchisees must purchase Takaful business protection insurance to protect premises, pawned
products and other assets of the company especially against theft, pilferage, arson and fire
damage. A comprehensive business insurance must be purchased as necessary prerequisite to
maintain franchise. The franchisor must also be named in the insurance policy and a copy of the
cover note and policy must be remitted to the franchisor administration unit for record and
custody.

Insurance must be purchased to cover the following incidences:

i. Break-in, damage, loss, theft, missing or misplacement, negligence

ii. Fire damage and resultant loss

iii. Robbery, theft, embezzlement

iv. Cash or gold products in transit

v. Public liability coverage to all customers loss to cover malefic incidences in the outlet
 vi. Outlet Fidelity Insurance to protect from loss of money, security, inventory due to crime.
This is to protect and pay compensation for loss as a result of breach of trust by
employees, cheating, robbery, theft, computer embezzlement, illegal monetary
transfer of funds, counterfeit currency and other crimes.

All insurance policies have varying annual premiums due to Non-Claim Bonus etc.

BREAK-IN INTO PREMISES

According to the terms of the franchise agreement, the Ar-Rahnu franchisee is obliged to buy
comprehensive coverage protection policy to encompass protection against commercial loss,
defalcation and damages.

FIRE

According to the terms of the franchise agreement, the Ar-Rahnu franchisee is obliged to buy
comprehensive coverage protection insurance policy to encompass protection against
commercial loss, defalcation and damages.

“CASH-IN-PREMISES”

This will provide protection for the cash kept in the Ar-Rahnu franchise outlet in the event of
theft or robbery.

“CASH-IN-TRANSIT”

This will provide protection for cash in transit from bank to premises and from premises to bank
in the event of theft or robbery.

“PUBLIC LIABILITY” (optional)

This will provide protection for customers in the event of unwarranted incident occurring in the
premises of the Ar-Rahnu franchise outlet.

“FIDELITY INSURANCE”

This will provide protection to the company against monetary loss, security breach or missing
inventory arising from criminal activity. It will assist to protect and compensate for loss arising
from breach of trust by staff, cheating, robbery, theft, computer theft, criminal transfer of money,
counterfeit currency and other criminal activities.

All policies mentioned have different rates of premium which vary from year to year.

6.8 BROCHURES

The Franchisor will design and print brochures and pamphlets for the opening ceremony of the
Ar-Rahnu franchise outlet. The Ar-Rahnu franchisee must:

• Submit location map and business operating hours to the Franchisor

• Set the official outlet commencement date

• Send brochures and pamphlets to residents

• Pay for printing costs

6.9 BUSINESS CHOP

You are requested to place order according to the guidelines set by the Franchisor.

Note: refer to the Corporate Identity Section.

6.10 TELECOMMUNICATION FACILITIES

The Ar-Rahnu franchise outlet must be equipped with telephone and fax machines.

TELEPHONE CONNECTION

You are required to apply for telephone connection at Telekom local office by preparing the
following:

• Copy of business registration license

• Cash deposit

• Business chop

FAX CONNECTION

Ensure that you apply for separate fax connection so that the fax transmission is not disrupted or
interfered.

6.11 BASIC AMENITIES

All A-Rahnu franchise outlets must be equipped with basic amenities like electrical supply and
water utilities before commencing business.

If the electrical supply and water is cut off at the franchise outlet, kindly call the electric supplier
or water utility for reason.
ELECTRIC SUPPLY

The specification for electric supply is as follows:

• 3 phase electric wiring

• 100 Amperes

7.0 SHOP IMAGE & FAÇADE

7.1 SHOP FLOOR PLAN

The Franchisor party will cooperate with the franchisee and appointed contractor to design the
shop floor plan.

7.2 FURNITURE AND FACILITIES

The Franchisor party will cooperate with the franchisee and appointed contractor to design the
equipment and facilities of the shop outlet.

The franchisee must prepare the list of equipment and facilities and purchased them once the
floor plan of the shop outlet is approved by the Franchisor.

7.3 COLOUR SCHEME

The Franchisor party will cooperate with the franchisee and appointed contractor in the selection
of materials and colour scheme for the outlet.
8.0 RENOVATING THE SHOP OUTLET

8.1 APPOINTMENT OF CONTRACTOR/SUPPLIER

The management control company (administrator) is the Project Manager/Coordinator for all
renovation and refurbishment of Ar-Rahnu franchise outlet premises.

• The management control company is responsible for managing the tender for every
renovation.

• The Franchisee is allowed to suggest and recommend contractors who are interested to
take up the job

BASIC GUIDELINES FOR REMUNERATING SUPPLIER AND CONTRACTOR

Supplier and contractor who are remunerated must have the following:

• Good reputation and excellent prestige in every task undertaken

• Capable to furnish and refurbish a Ar-Rahnu franchise outlet within the allotted time
duration

The Franchisee must apply to obtain the list of suppliers and contractors approved by the
Franchisor.

8.2 COMPUTER SUPPLIES

The supply and installation of computer system and infrastructure for the Ar-Rahnu franchise
outlet will be undertaken by the Information Technology supply company appointed by the
Franchisor. The Information Technology officer involved will provide the clarification and
information as well as train the franchise shop staff to ensure they understand fully the know-
how of operating the computer software and hardware programmes.

8.3 INVENTORY

Please ensure that the shop outlet is fully equipped with the following equipment, facilities,
furniture and fittings:

Number Unit Details

1 furniture

2 1 Iron vault Lord Victor

3 2 Iron vault SDL254

4 1 Iron vault Polaris + Metal

Stand

5 2 Metal Stand

6 1 Densimeter GK300

7 1 Vacuum Banknote Counter

8 1 Brochure Standee

9 1 Hydrochloric Acid

10 1 Nitric Acid

11 1 Black Stone

12 2 Pi-Pump & Pi-pet

13 1 Safety Spectacles

14 1 Iron chopsticks

15 1 Face mask

16 1 Casio calculator printer

 17 2 Canon calculator

18 1 Paymaster Electronic
Chequewriter

19 2 Spectrolite Lamp

20 2 Petty Cash (average)

21 2 Fire extinguisher CO2 (2.2 kg)

22 2 Fire extinguisher ABC (9 kg)

23 1 White Board

24 1 Soft Board 3 x 6

25 1 Emergency box (Large)

26 Sign Board

27 1 Fireproof Cabinet

28 1 4 lock cabinet

29 Air conditioner & lights

30 Alarm system

8.4 BANNER FOR OPENING BUSINESS

The Ar-Rahnu franchisee will be supplied with banner for opening ceremony of shop when the
shop outlet is ready for commencement.

The Ar-Rahnu franchisee must:

• Obtain the consent of the local authority

• Pay daily fees to display the banner

• Display banner 3 weeks before the opening day

9.1 AR-RAHNU FRANCHISE TRAINING CENTRE

The Ar-Rahnu franchise training centre is an institution which will be made as a place to:

• Study and exchange experience

• Instill and inculcate relationship between franchisees of Ar-Rahnu with the Franchisor

TRAINING CENTRE

This training centre is created for:

• Providing introductory courses for Ar-Rahnu franchisees

• Provide additional courses (if necessary) for existing franchisees

• Train operational officers of the franchise

• Build and improve the training module to suit changing conditions

9.2 POLICY & TRAINING MODULE

Besides the practical training for 2 days for every participant in the prototype Ar-Rahnu
franchise outlet. The Franchisor will prepare the introductory training for 3 days as preparation
for the franchisee.

POLICY
To participate in the course set for 5 days training, the franchisee must follow the policies which
have been set.

• The Ar-Rahnu franchisee must bear all expenditure cost for travel, lodging and other
personal expenses. The fees for the training course are free.

• The franchisee party must make the decision to choose 5 participants from his staff to
attend the training course following the guidelines set by the franchisor. (Training course
for additional staff other than the selected 5 will be charged fees).

• Penalty fees will be charged if the selected participant does not attend the training course

• The franchisee party is responsible to find a substitute for the absentee or person unable
to attend the training course before the training date

• The franchisee is obliged to prepare all the relevant preparations mandated in the
invitation letter to the training course

TRAINING COURSE

The training course is based on the Ar-Rahnu Franchise model. The Franchisor will send notices
to the franchisee from time to time inviting them to attend whatever seminar courses which are
sponsored by the Franchisor.

Note: kindly refer to the Training Manual to understand the type of training and modules.

TRAINING DURATION PERIOD

• Introductory course training – 3 days

• Full training course – 2 hours per participants

10.1 PREPARATION
Before the official opening ceremony, the Ar-Rahnu franchise outlet must:

• Confirm the names and attendance of VIP’s

• Fix the date of official opening

• Prepare the agenda for the ceremony and ensure the programme does not exceed 2 hours

• Prepare the food and beverage

During the official opening day, please ensure:

• Ar-Rahnu franchise outlet shop is tidy and orderly

• The window furnishing is displayed properly

• All preparations are managed professionally

10.2 INVITATION CARD

The franchisee is responsible for printing the invitation card to VIP’s for opening ceremony of
the Ar-Rahnu franchise outlet.

• Distribute the invitation cards at least one week before the official opening date

• Prepare the agenda

• Submit the name of the VIP who will officiate the opening ceremony

• Inform and submit the list of VIP’s to the Franchisor

The payment for printing the invitation cards will be borne by the Ar-Rahnu franchisee.

10.3 SNACKS AND HORS D’OUEVRE (FINGER FOOD)

Prepare the snacks (finger food and tea snacks) for the guests. The expenses for snacks and
finger food will be borne by the Ar-Rahnu franchisee.