A Shariah-Compliant Musharakah Retail Franchise with Best Electronics

The Best Electronics Franchise Program, or BEFP, is a Shariah-compliant Musharakah franchise model. It enables franchisees to participate in the structured expansion of Best Electronics’ national retail network.

Under this model, franchisee’s capital is linked directly to asset-backed showroom operations across Bangladesh. The program is designed around real business activity, actual showroom performance, and transparent profit participation.

Best Electronics is one of Bangladesh’s leading consumer electronics retail chains, operating across refrigerators, televisions, air conditioners, washing machines, kitchen appliances, mobile phones, gadgets, and EV bikes.

The brand portfolio includes Hitachi, Whirlpool, Sharp, Conion, Hisense, Toshiba, TCL, Panasonic, LG, Haier, Gree, Sony, Philips, Midea, Hyundai and other global brands.

Each month, gross profit is calculated. Rent and utility expenses are then deducted. The resulting figure is called GP2, or operational gross profit. During the first three years, franchisees may receive up to 40% of GP2 according to the agreed Musharakah profit-sharing ratio, which may vary showroom-wise. Rent and utilities are not deducted from the franchisee’s share only. They are treated as operating expenses of the showroom and shared through the GP2 calculation.

If a franchisee wants an earlier exit, the franchisee may transfer their Musharakah franchise unit to another eligible party at a mutually agreed fair market value, subject to prior written approval of Best Electronics and the right of first refusal.

The valuation may be based on the franchise prevailing net asset value or another pre-agreed Shariah-compliant valuation methodology reflecting the actual financial position of the showroom at the time of transfer.

There is no guaranteed premium or fixed capital protection. The transfer represents the sale of an ownership interest in an ongoing commercial venture, not the settlement of a debt obligation.

If Best Electronics closes a showroom due to landlord disputes, strategic relocation, or sustained underperformance, the company shall purchase the franchisee’s share of showroom setup assets at fair market value.

Settlement will reflect the actual duration the capital remained invested in the showroom and will remain compliant with Musharakah principles.

Each franchisee may nominate one individual as nominee for their BEFP participation. In the event of the franchisee’s death or permanent incapacity, the nominee may receive due profit distributions and financial benefits, subject to applicable laws and required documentation.

The nominee does not automatically assume ownership, management rights, or decision-making authority unless formally approved and transferred according to the Musharakah agreement and legal procedures.

Each franchisee receives a signed Musharakah contract, defined capital allocation disclosure, annual financial performance summary, and profit distribution documentation.

All business ventures involve risk, including market fluctuations, consumer demand shifts, policy changes, currency volatility, and competitive pricing pressure. In accordance with Musharakah principles, profit is not guaranteed, loss is shared according to capital ratio, and capital remains exposed to business performance.