Franchising In Malaysia

InfoFranchise.com:

The franchising business model has since come of age in Malaysia. Nowadays it has not only gained popularity but as one of the preferred ways of doing business grow stronger everyday. Witness the volume of growth statistics spewed forth by various resources as well as the increasing interest of governmental bodies in attracting franchise business.

Franchise in Malaysia is regulated by the Franchise Act 1998, which came into force on 8 October 1999. The FA 98 sets out a legal definition of a franchise and regulates those business models that fall within the legal definition of franchise.

According to the FA 98, a franchise is a contract or an agreement between 2 or more persons by which the franchisor grants the franchisee the right to operate a business according to the franchise system as determined by the franchisor. Every franchise business in Malaysia is made compulsory to register with ROF, the Registrar of Franchise, authorised by the Franchise Act 1998. Incompliance is considered as an offence.

Franchise in Malaysia trusts on the Malaysian Franchise Association (MFA), created on 1994, to support the implementation of the Government program to promote entrepreneurship through franchising. MFA aims to be the prime mover representing the franchise fraternity towards realising Malaysia’s vision to be the regional hub for franchising. Moreover it works to unite its members in view of protecting their interests, to cultivate and protect the image of franchising and encourage ethical business practice and to support the government’s efforts in encouraging Malaysian direct and active involvement in franchising.