Franchise Act 1998 · Updated to 1 Nov 2023 · Part II
6A. Registration of franchisee of foreign franchisor
Feedback & supportBefore commencing the franchise business, a franchisee who has been granted a franchise from a foreign franchisor shall apply to register the franchise with the Registrar by submitting the application in such form as may be determined by the Registrar together with the prescribed fee and such application shall be subject to the Registrar’s approval.
franchise
“franchise” means a contract or an agreement, either expressed or implied, whether oral or written, between two or more persons by which— Franchise 9 (a) the franchisor grants to the franchisee the right to operate a business according to the franchise system as determined by the franchisor during a term to be determined by the franchisor; (b) the franchisor grants to the franchisee the right to use a mark, or a trade secret, or any confidential information or intellectual property, owned by the franchisor or relating to the franchisor, and includes a situation where the franchisor, who is the registered user of, or is licensed by another person to use, any intellectual property, grants such right that he possesses to permit the franchisee to use the intellectual property; (c) the franchisor possesses the right to administer continuous control during the franchise term over the franchisee’s business operations in accordance with the franchise system; and (d). (e) in return for the grant of rights, the franchisee may be required to pay a fee or other form of consideration. (f).
The Registrar may impose any conditions for the approval of registration of franchise referred to in subsection (1).
Registrar
“Registrar”, “Deputy Registrar” and “Assistant Registrar” mean respectively the Registrar of Franchises, a Deputy Registrar of Franchises and an Assistant Registrar of Franchises appointed under section 5;
Upon approving the application under subsection (1), the
Registrar may require the applicant to pay such amount of fee as may be prescribed.
Where a franchisee has been granted approval from a foreign franchisor to sell the franchise, the franchisee shall register such approval.
franchisee
“franchisee” means a person to whom a franchise is granted and includes, unless stated otherwise in this Act— (a) a master franchisee with regard to his relationship with a franchisor; and (b) a subfranchisee with regard to his relationship with a master franchisee;
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Any franchisee who fails to comply with this section commits an offence.