Section 34
Extension of franchise term
ActIn forceProvision 40 of 73
Section 34
(1)
A franchisee may, at his option, apply for an extension of the franchise term by giving a written notice to the franchisor not less than six months prior to the expiration of the franchise term.
(2)
Except when a franchisee has breached the terms of a previous franchise agreement, a franchisor shall extend the franchise term to
30 Laws of Malaysia ACT 590
another period if the franchisee has applied for the extension of term under subsection (1).
(3)
A franchise agreement which franchise term has been extended shall contain conditions which are similar or not less favourable than the conditions in the previous franchise agreement.