Franchise Act 1998 · Updated to 1 Nov 2023 · Part VI · Offences and Penalties
39. General penalty
Feedback & supportA person who commits an offence under this Act for which no penalty is expressly provided shall, on conviction, be liable—
person
“person” includes a natural person, corporation, partnership, association, firm, joint venture or trust;
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
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.
Upon sentencing a franchisor for an offence under this section, the court may—
franchisor
“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;
declare the franchise agreement between the franchisor and any franchisee to be null and void;
order that the franchisor refunds any form of payment which he has obtained from any franchisee; or
prohibit the franchisor from making any new franchise agreement or appointing any new franchisee.