Allegedly Non-Existent Franchise Investment: Man Faces Charges

A man pleaded not guilty at two Magistrates’ Courts in Alor Setar, Malaysia, on 10 November 2026 to six cheating charges involving total alleged losses of RM782,380 (Malaysian ringgit). The case includes allegations of obtaining capital for a non-existent Bubblebee franchise business, as well as transactions involving payment for drinks, a job offer and a car sale.

Three charges relating to franchise capital

According to Bernama, the accused, Mohamad Jaylani Sheikh Mohamad, 47, entered his not-guilty pleas before Magistrate Eliana Ismail and Magistrate Nur Syifa Mohd Hamzah. The charges concern acts allegedly committed in and around Alor Setar in 2022 and 2023.

Before Magistrate Eliana, Mohamad Jaylani was charged with deceiving two individuals, aged 42 and 55, into handing over RM83,500 and RM362,000 in cash respectively. The money was allegedly paid as capital for a non-existent Bubblebee franchise business.

Before Magistrate Nur Syifa, he was charged with deceiving a 49-year-old individual into handing over RM250,500 as capital for the same allegedly non-existent franchise business.

The three amounts relating to the franchise capital allegations total RM696,000. This forms part of the RM782,380 reported across all six charges; it is not the total value of every transaction mentioned in the case.

For the franchise community, this distinction matters when assessing the scope of the case. Most of the money cited in the charges relates to franchise capital, but the case also covers separate transactions. All allegations remain subject to court proceedings and do not constitute findings of guilt.

Cheque, job offer and car sale

Another charge before Magistrate Eliana concerned a cheque for RM5,040 drawn on a closed bank account. The cheque was allegedly given to an individual as payment for 500 cups of Bubblebee drinks, with the intention of deceiving the recipient into believing the payment was valid.

The three offences heard before Magistrate Eliana were allegedly committed in and around Alor Setar between 28 March and 12 August 2023.

Before Magistrate Nur Syifa, alongside the charge relating to RM250,500 in franchise capital, the accused was also charged with deceiving a 42-year-old individual into handing over RM55,000. That charge concerned an offer of a chief executive position and an investment in an allegedly non-existent company.

Mohamad Jaylani was also charged with deceiving a 39-year-old man into handing over RM26,340 in cash for the purchase of a non-existent Mercedes car from Indonesia. Taken together, the offences in the case were allegedly committed between 17 March 2022 and 1 September 2023.

References to Bubblebee in the details of the charges should be understood in this context: they concern business offers and transactions allegedly made by the accused. The reported charges are against Mohamad Jaylani and do not represent a court ruling against the brand.

Bail set at RM24,000, with next court mention in December

All charges were brought under Section 420 of Malaysia’s Penal Code. Upon conviction, the provision carries a maximum prison sentence of 10 years and whipping, with a possible fine.

The courts granted bail totalling RM24,000 for all charges and set 9 December for the next mention of the case. This is a procedural court date, not a date for a verdict or sentencing.

The accused’s not-guilty pleas also mean that the allegations have yet to be proved. The loss figures, purposes of payment and existence of the business offers described in this report should therefore be understood as details of charges still before the courts.

Checks before handing over capital

This case gives prospective franchisees a practical reason to distinguish between the brand name used in an offer and the actual authority of the person presenting the business opportunity. A familiar name should not replace checks on the identity of the recipient of funds, the business documents and the purpose of each payment.

As a precaution, prospective investors should seek confirmation directly from the brand owner through official channels before handing over capital. Check the franchise’s registration status with the relevant authorities, request written documentation and ensure that the parties named in the agreement match the payment recipient. Seek independent legal advice if the rights or obligations set out in the offer are unclear.

Practical takeaway: Verify who is offering the franchise, check the documents and keep payment records before making a financial commitment. At the same time, respect the court process: the accused in this case has pleaded not guilty.