This Act applies throughout Malaysia to the sale and operation of any franchise in Malaysia.
8 Laws of Malaysia ACT 590
The sale and operation of a franchise is deemed to be in
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).
Malaysia where—
an offer to sell or buy a franchise—
is made in Malaysia and accepted within or outside Malaysia; or
is made outside Malaysia and accepted within or outside Malaysia; and
the franchised business is operated or will be operating in
Malaysia.
Nothing in this Act shall affect the provisions of any other written laws, but if there is any conflict between the provisions of this
Act and the provisions of the other written laws, the provisions of this
Act shall prevail.