Sample Franchise Agreement Malaysia

Malaysia`s 2010 Competition Act (CA) came into force on 1 January 2012. The Malaysian Competition Commission (MyCC) is an independent body created under the Competition Commission Act 2010 for the application of the CA. MyCC has published numerous directives that came into force in 2012, including anti-competitive agreement and market definition directives (both of which came into force in 2012), as well as intellectual property and competition law (which came into force in April 2019) , which contain a non-exhaustive list of factors and circumstances that MyCC may have on hand. These guidelines are not comprehensive and do not replace the certification body or the provisions adopted and may be revised if necessary. The application of these guidelines takes into account the facts and circumstances of each case. MyCC has indicated that it intends to adopt specific guidelines for franchise agreements, but no specific timetable has been given. In addition, the newly introduced sections 6a and 6b will make it mandatory for any franchisee of a local franchisor or local franchisee and for any franchisee of a foreign franchisor to register with the clerk before the franchise begins. (i) Double registration of the franchise by foreign franchisorsIn this section 54 (1) of the Act, a foreign franchisor wishing to sell a franchise in Malaysia to a Malaysian citizen is required to file an application with the franchise clerk. Section 6 of the Act also requires a franchisor to register his franchise before he can operate a franchise or make an offer to sell a party`s franchise. Notwithstanding these provisions of the CEW, a franchise term may be terminated before the expiry of the minimum five-year term in the following circumstances: In addition, a franchisee who has benefited from a franchise by a local franchisor or a local franchisee registers the franchise with the clerk within 14 days of the date of the signing of the contract between the franchisor and the franchisee.