26. Confidential information

(1)

A franchisee shall give a written guarantee to a franchisor that the franchisee, including its directors, the spouses and immediate family of the directors, and his employees shall not disclose to any person any information contained in the operation manual or obtained while undergoing training organized by the franchisor during the franchise term and for two years after the expiration or earlier termination of the franchise agreement.

(2)

The franchisee, including its directors, the spouses and immediate family of the directors, and his employees shall comply with the terms of the written guarantee given under subsection (1).

(3)

A person who fails to comply with subsection (1) or (2)

commits an offence.

* NOTE— The Trade Marks Act 1976 [Act 175] has since been repealed by the Trademarks Act 2019

[Act 815]—see section 164 of Act 815.

26 Laws of Malaysia ACT 590

Terms defined in s 4

franchise
Defined · s 4
“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).
Open s 4
franchise agreement
Defined · s 4
“franchise agreement” means a contract or an agreement made between a franchisor and a franchisee in respect of a franchise in return for any form of consideration but does not include any contract or agreement made for the purpose of direct selling as provided by the Direct Sales Act 1993;
Open s 4
franchisee
Defined · s 4
“franchisee” means a person to whom a franchise is granted and includes, unless stated otherwise in this Act— (a) a master franchisee with regard to his relationship with a franchisor; and (b) a subfranchisee with regard to his relationship with a master franchisee;
Open s 4
franchisor
Defined · s 4
“franchisor” means a person who grants a franchise to a franchisee and includes a master franchisee with regard to his relationship with a subfranchisee, unless stated otherwise in this Act;
Open s 4
person
Defined · s 4
“person” includes a natural person, corporation, partnership, association, firm, joint venture or trust;
Open s 4

Report

Read on from s 27

Part IV

Conduct of Parties and Termination of Franchise Agreement

Read on from Part IV

Part V

Franchise Advisory Board

Read on from Part V

Part VI

Offences and Penalties

Read on from Part VI

Part VII

Enforcement

Read on from Part VII

Part VIII

Miscellaneous

Read on from Part VIII