The Franchise and Vendor Division was created on 8 May 1999 simultaneously with the establishment of the Ministry of Entrepreneur and Cooperative Development (MECD), formerly known as the Ministry of Public Enterprises. This division has two units namely Franchise Unit and Vendor Unit. Franchise Unit (Franchise Development Program) is a unit that is transferred from the Implementation Coordination Unit (ICU) of the Prime Minister Department while the Vendor Unit (Vendor Development Program) is from the Ministry of International Trade and Industry (MITI).

The transfer of these two programs is consistent with the purpose of establishing the MECD in meeting the requirements of the government’s policy to accelerate the achievement of the goal of creating a Bumiputera Commercial and Industrial Community (MPPB)

On 09 April 2009, the Ministry of Entrepreneur Development (MECD) was dissolved and the function of the Franchise Development Division was transferred to the Ministry of Domestic Trade and Cost Of Living (KPDN), now known as the Ministry of Domestic Trade and Cost Of Living (KPDN).

At the end of 2019, the Direct Selling license processing function was incorporated into the function of this division from the Domestic Trade Division (BPDN) which was dissolved following the restructuring of KPDN.