Malaysia legislation
Section 32
Section 32
A franchisor commits an offence if he refuses to renew a franchise agreement or extend a franchise term without compensating a franchisee either by a repurchase or by other means at a price to be agreed to between the franchisor and the franchisee after considering
Franchise 29
the diminution in the value of the franchised business caused by the expiration of the franchise where—
(a)
the franchisee is barred by the franchise agreement, or by the refusal of the franchisor at least six months before the expiration date of the franchise agreement to waive any portion of the franchise agreement which prohibits the franchisee, from continuing to conduct similar business under another mark in the same area subsequent to the expiration of the franchise agreement; or
(b)
the franchisee has not been given a written notice of the franchisor’s intent not to renew the franchise agreement at least six months prior to the expiration date of the franchise agreement.
Earlier termination of franchise term