(1)
A franchise broker or franchise consultant shall register himself with the Registrar in the following manner:
franchise broker
“franchise broker” means a person doing business as an agent or representative of a franchisor to sell a franchise to any person for a certain consideration but does not include any director, officer or employee of the franchisor or franchisee;
by submitting the application in such form as may be determined by the Registrar together with the prescribed fee; and
Registrar
“Registrar”, “Deputy Registrar” and “Assistant Registrar” mean respectively the Registrar of Franchises, a Deputy Registrar of Franchises and an Assistant Registrar of Franchises appointed under section 5;
by filing with the Registrar any information, which shall be determined by the Registrar, in respect of any representative or agent appointed by the franchise broker or franchise consultant.
franchise consultant
“franchise consultant” means a person who provides advice and consultancy services to another person on the registration of a franchise business and compliance of the related laws;
The franchise broker or franchise consultant must meet all the requirements as prescribed on the qualifications of a franchise broker or franchise consultant before he can be registered.
The Registrar may impose conditions on the registration of a franchise broker or franchise consultant.
Upon approving the application under subsection (1), the
Registrar may require the applicant to pay such amount of fee as may be prescribed.
The conditions in subsection (3) may include conditions governing the sale of a franchise by a franchise broker or franchise consultant and conditions on the conduct, suspension, termination, prohibition or denial of registration of a franchise broker or franchise consultant.
franchise
“franchise” means a contract or an agreement, either expressed or implied, whether oral or written, between two or more persons by which— Franchise 9 (a) the franchisor grants to the franchisee the right to operate a business according to the franchise system as determined by the franchisor during a term to be determined by the franchisor; (b) the franchisor grants to the franchisee the right to use a mark, or a trade secret, or any confidential information or intellectual property, owned by the franchisor or relating to the franchisor, and includes a situation where the franchisor, who is the registered user of, or is licensed by another person to use, any intellectual property, grants such right that he possesses to permit the franchisee to use the intellectual property; (c) the franchisor possesses the right to administer continuous control during the franchise term over the franchisee’s business operations in accordance with the franchise system; and (d). (e) in return for the grant of rights, the franchisee may be required to pay a fee or other form of consideration. (f).
The registration under this section shall be effective for two years from the date of registration, unless determined otherwise by the
Registrar.
(Deleted by Act A1617).
(Deleted by Act A1617).
*NOTE—See section 26 Franchise Act (Amendment) 2020 [Act A1617].
Franchise 19
The provisions relating to confidential information and the prohibition on carrying on a similar business in sections 26 and 27 are also applicable to a franchise broker or franchise consultant.
Any franchise broker or franchise consultant who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit, and for a second or subsequent offence, to a fine not exceeding twenty-five thousand ringgit.