04 Nov Dear Foreign Franchisors, Have You Registered With The Registrar?
A Common Legal Issue
Section 54(1) of Malaysian Franchise Act 1998 (Amendment) 2020 says that foreign franchisors who intend to or are interested to sell their franchise business in Malaysia MUST be registered with the Ministry of Domestic Trade and Consumer Affairs (MDTCA).
“A foreign person who intends to sell a franchise in Malaysia or to any Malaysian citizen shall apply to the Registrar by submitting an application in such form as may be determined by the Registrar together with the prescribed fee”
Those who fail to do so is found to have violated the Act and can be fined up to RM 500,000 and/or jailed up to three years.
Book a consultation and speak to us, it never hurts to learn a little more.
Intellect Franchising is a panel consultant under
Perbadanan Nasional Berhad, registered with MDTCA
and a member of Malaysian Franchise Association.
For assistance, contact Ms. Lee San
+6017 515 7100