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Section 39

General penalty

of Franchise Act 1998

ActIn forceProvision 46 of 73
Section 39

(1)

A person who commits an offence under this Act for which no penalty is expressly provided shall, on conviction, be liable—

(a)

if such person is a body corporate, to a fine of not less than ten thousand ringgit and not more than fifty thousand ringgit, and for a second or subsequent offence, to a fine of not less than twenty thousand ringgit and not more than one hundred thousand ringgit; or

(b)

if such person is not a body corporate, to a fine of not less than five thousand ringgit and not more than twenty-five thousand ringgit or to imprisonment for a term not exceeding six months, and for a second or subsequent offence, to a fine of not less than ten thousand ringgit and not more than fifty thousand ringgit or to imprisonment for a term not exceeding one year.

(2)

Upon sentencing a franchisor for an offence under this section, the court may—

(a)

declare the franchise agreement between the franchisor and any franchisee to be null and void;

(b)

order that the franchisor refunds any form of payment which he has obtained from any franchisee; or

(c)

prohibit the franchisor from making any new franchise agreement or appointing any new franchisee.