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Section 6

of Franchise Act 1998

ActIn forceProvision 6 of 73

Section 6

(1)

A franchisor or a foreign person who has obtained an approval to sell a franchise in Malaysia or to any Malaysian citizen under section 54 shall register his franchise with the Registrar before

*NOTE—See section 27 Franchise Act (Amendment) 2020 [Act A1617].

12 Laws of Malaysia ACT 590

he can operate a franchise business or make an offer to sell the franchise to any person.

(2)

Any franchisor or foreign person who fails to comply with this section, unless exempted by the Minister under section 58, commits an offence and shall, on conviction, be liable—

(a)

if such person is a body corporate, to a fine not exceeding two hundred and fifty thousand ringgit, and for a second or subsequent offence, to a fine not exceeding five hundred thousand ringgit; or

(b)

if such person is not a body corporate, to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both, and for a second or subsequent offence, to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.