Which is required for the success of the organisation in the development of the businesses prototypes and management system. Working closely with our clients, we convert their successful prototypes into viable Franchising or Licensing packages – from the drafting of their Franchise / License agreements, to the painstaking documentation of their operational and training procedures in order to produce Franchisee-friendly operational and training manuals.
Which is required for the success of the organisation in the development of the businesses prototypes and management system. Working closely with our clients, we convert their successful prototypes into viable Franchising or Licensing packages – from the drafting of their Franchise / License agreements, to the painstaking documentation of their operational and training procedures in order to produce Franchisee-friendly operational and training manuals.
Complete business package (including technical know-how) will be shared with the franchisee.
Continued assistance and guidance must be provided by the franchisor to the franchisee.
Bounded by the Franchise Act 1998.
A Franchise agreement has to be at least five years long.
Compulsory to register a franchise.
Only available to business that have been operating as a Sdn Bhd for at least three years.
A stringent franchisee selection process is usually done.
Trademark filing is required.
Only brand name will be shared with the licensee.
Only the technical/product knowledge training will be given at the beginning by the licensor and then it is up to the license to run the business on his own.
Governed by the Contract Law.
A licensing agreement generally lasts less than five years.
Recordal of license agreement (advisable)
Sole proprietors can also opt for licensing.
The licensee selection process is usually less stringent than the one done for franchisee.
Not necessary to secure a registered trademark™.
That is why it is no surprise that Franchising is a favourite ultimatum for business owners to expand their businesses. It has been used by many successful businesses as a powerful tool to leverage their businesses and to penetrate the market with lesser capital investment and effort.
Franchising is a method of expanding your business by licensing your intellectual property rights such as trade mark or trade name to a franchisee who pays you a certain amounts of fee to operate the business using your specific business system or know how at a specified period of time. The franchisee shall conduct its business operations in accordance with proven standards and specifications that have been well established.
The advantages are:
Yes, the registration of Franchise is compulsory by virtue of Section 6(2) of the Franchise Act 1998. The section provides that all franchises must be registered with the Registrar of Franchise before the Franchisor can offer to sell it in or outside Malaysia. Failure to comply with this provision is an offence under the Act.
Licensing is one of the most popular methods of business leveraging strategies after Franchising. In general, Licensing is a permission given by the licensor or authorize the licensee the legal rights to use the brand name, logo, product, technology, inventions and/or works of expression for commercial purposes, sparing the license from a claim of infringement brought by the licensor.
There are many benefits, among others are:
No, so far there is no such provision of law required the licensor to do so in Malaysia.