FRANCHISE (AMENDMENT) ACT 2020

This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette.

General amendment

by substituting for the words “pemberi francais” wherever appearing including in the shoulder notes the word

“francaisor”;

by substituting for the words “pemegang francais”

wherever appearing including in the shoulder notes the word “francaisi”;

by substituting for the words “pemegang subfrancais”

wherever appearing the word “subfrancaisi”; and

by substituting for the words “perunding francais”

wherever appearing the words “konsultan francais”.

Amendment of section 4

in the national language text, by inserting after the definition of “francais” the following definitions:

‘ “francaisi” ertinya seseorang yang kepadanya francais diberikan dan termasuk, melainkan jika dinyatakan selainnya dalam Akta ini—

francaisi induk berkenaan dengan hubungannya dengan francaisor; dan

subfrancaisi berkenaan dengan hubungannya dengan francaisi induk;

“francaisi induk” ertinya seseorang yang diberi hak oleh francaisor untuk mensubfrancaiskan kepada orang lain, atas perbelanjaannya sendiri, francais kepunyaan francaisor itu;

“francaisor” ertinya seseorang yang memberikan francais kepada francaisi dan termasuk francaisi induk berkenaan dengan hubungannya dengan subfrancaisi, melainkan jika dinyatakan selainnya dalam Akta ini;’;

in the national language text, by inserting after the definition of “iklan” the following definition:

‘ “konsultan francais” ertinya seseorang yang memberikan nasihat dan perkhidmatan konsultasi kepada orang lain mengenai pendaftaran perniagaan francais dan pematuhan kepada undang-undang yang berhubungan dengannya;’;

Franchise (Amendment)

in the national language text, by deleting the definitions of “pemberi francais”, “pemegang francais”, “pemegang francais induk” and “perunding francais”; and

by inserting after the definition of “regulations” the following definitions:

‘ “subfranchise” means a franchise granted by a master franchisee to a subfranchisee for business purposes under this Act;

“subfranchisee” means a subfranchise holder;’.

Amendment of section 6

in subsection (1), by inserting after the word “franchisor”

the words “or a foreign person who has obtained an approval to sell a franchise in Malaysia or to any

Malaysian citizen under section 54”; and

in subsection (2), by inserting after the word “franchisor”

the words “or foreign person”.

Amendment of section 6a

in subsection (1), by substituting for the words “by using the prescribed application form” the words “by submitting the application in such form as may be determined by the Registrar together with the prescribed fee”;

by inserting after subsection (2) the following subsection:

“(2a)  Upon approving the application under subsection (1), the Registrar may require the applicant to pay such amount of fee as may be prescribed.”; and

by inserting after subsection (3) the following subsection:

“(4) Any franchisee who fails to comply with this section commits an offence.”.

Amendment of section 6b

Any franchisee who fails to comply with subsection (1) commits an offence.”.

Amendment of section 7

An approval for the application made under subsection (1)

may be subject to such conditions as the Registrar may impose.

Upon approving the application under subsection (1), the Registrar may require the applicant to pay such amount of fee as may be prescribed.

Section 10 shall apply to the period of effectiveness of the registration of franchise which is renewed under this section.

Display of registration of franchise 10b.  (1)  A franchisor or franchisee shall at all times display the registration of franchise in a conspicuous position at the place where the franchisor or franchisee carries on his business.

Any franchisor or franchisee who fails to comply with subsection (1) commits an offence.”.

Amendment of section 11

in the shoulder note, by substituting for the words

“disclosure documents” the words “supporting documents for registration of franchise”;

in subsection (1)—

by deleting the word “disclosure”; and

in subsection (2), by inserting after the word “Registrar”

the words “together with the prescribed fee”.

Amendment of section 14

in the shoulder note, by inserting after the words “franchise broker” the words “or franchise consultant”;

in subsection (1), by substituting for paragraph (a)

the following paragraph:

“(a) by submitting the application in such form as may be determined by the Registrar together with the prescribed fee; and”;

by inserting after subsection (3) the following subsection:

“(3a)  Upon approving the application under subsection (1), the Registrar may require the applicant to pay such amount of fee as may be prescribed.”;

by deleting subsections (5a) and (5b); and

by inserting after subsection (6) the following subsection:

“(7)  Any franchise broker or franchise consultant who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit, and for a second or subsequent offence, to a fine not exceeding twenty-five thousand ringgit.”.

Franchise (Amendment)

9

New sections 14a and 14b

An approval for the application made under subsection (1) may be subject to such conditions as the Registrar may impose.

Upon approving the application under subsection (1), the Registrar may require the applicant to pay such amount of fee as may be prescribed.

Subsection 14(5) shall apply to the period of effectiveness of the registration of a franchise broker or franchise consultant which is renewed under this section.

Any franchise broker or franchise consultant who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit, and for a second or subsequent offence, to a fine not exceeding twenty-five thousand ringgit.

Display of registration of franchise broker or franchise consultant 14b.  (1)  A franchise broker or franchise consultant shall at all times display the registration of franchise broker or franchise consultant, as the case may be, in a conspicuous position at a place where the franchise broker carries on his business or franchise consultant provides his services.

Any franchise broker or franchise consultant who fails to comply with this section commits an offence.”.

Amendment of section 15

in subsection (1), by deleting the word “disclosure”

wherever appearing; and

in subsection (2), by substituting for the words “section 7”

the words “sections 7 and 11”.

Amendment of section 18

in subsection (2), by substituting for paragraph (l)

the following paragraph:

“(l) the term of the franchise, and the terms of renewal and extension of the franchise agreement; and”;

by deleting subsection (3); and

in subsection (6), by substituting for the words

“subsection (5)” the words “this section”.

Amendment of section 22

by inserting after the words “who,” the words “in relation to an offer to sell a franchise or during the sale of a franchise,”; and

in paragraph (c), by deleting the words “in relation to an offer to sell or a sale of a franchise,”.

Amendment of section 42

by substituting for subsection (1) the following subsection:

“(1)  An authorized officer may investigate the commission of any offence under this Act.”;

in subsection (2), by substituting for the words “a franchisor, franchise broker or franchisee” the words “any person”; and

in subsection (3), by substituting for the words

“[Act 594]” the words “[Act 593]”.

Amendment of section 44

in subsection (1), by substituting for the words

“submit an application to the Registrar” the words

“apply to the Registrar by submitting an application in such form as may be determined by the Registrar together with the prescribed fee”; and

by inserting after subsection (3) the following subsection:

“(4)  Upon approving the application under subsection (1), the Registrar may require the applicant to pay such amount of fee as may be prescribed.”.

Amendment of section 60

filing fee for amendment of documents under section 11

of the principal Act;

processing fee for the registration of a franchise broker or franchise consultant under section 14 of the principal

Act; and

processing fee for an application by a foreign person for the sale of a franchise in Malaysia or to any Malaysian citizen under section 54 of the principal Act.

No action or legal proceeding shall be brought, instituted or maintained against the Government or any officer of the

Government or any person acting under them in respect of any fee which was charged and collected during the period referred to in subsection (1), and if any such action or legal proceeding has been brought, instituted or maintained, it shall be discharged and made void and no refund in respect of the fees charged and collected as stated in this Act shall be made.

Saving and transitional

Any registration of a franchise approved under the principal

Act before the coming into operation of this Act shall, on the date of coming into operation of this Act, continue to be effective for such period of effectiveness as prescribed under section 10

of the principal Act as amended by this Act.

Franchise (Amendment)

Any foreign person who has obtained an approval to sell a franchise in Malaysia or to any Malaysian citizen under section 54 of the principal Act before the date of coming into operation of this Act shall, on the date of coming into operation of this Act, be deemed to have registered his franchise under section 6 of the principal Act as amended by this Act.

KUALA LUMPUR