Exclusive Franchise Agreement Template for Malaysia

This Exclusive Franchise Agreement is essential for businesses expanding through franchising in Malaysia, providing a legally compliant framework under Malaysian law for the grant of exclusive territorial rights to franchisees. The document is specifically designed to meet requirements under the Franchise Act 1998 and related regulations, including mandatory registration with the Franchise Registry. It comprehensively addresses crucial aspects of the franchise relationship, including operational standards, brand protection, territory rights, fees, and support services. This agreement type is particularly important for businesses seeking to maintain quality control and brand consistency while expanding through franchising, ensuring both parties understand their rights and obligations within Malaysia's legal framework.

1. Parties: Identification of the franchisor and franchisee with full legal names and registration details

2. Background: Context of the agreement, brief description of the franchise business, and purpose of the arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Grant of Franchise: Explicit grant of franchise rights and exclusivity provisions

5. Territory: Definition and boundaries of the exclusive territory

6. Term and Renewal: Duration of the agreement and conditions for renewal

7. Franchise Fees: Initial franchise fee, ongoing royalties, and other financial obligations

8. Franchisor's Obligations: Comprehensive list of franchisor's duties including training, support, and supply obligations

9. Franchisee's Obligations: Detailed responsibilities of the franchisee including operational standards and compliance requirements

10. Intellectual Property: Protection and usage of trademarks, trade secrets, and other IP

11. Training and Support: Details of initial and ongoing training and support provisions

12. Quality Control: Standards, inspections, and compliance requirements

13. Marketing and Advertising: Marketing obligations, fees, and coordination requirements

14. Confidentiality: Protection of confidential information and trade secrets

15. Non-Competition: Restrictions during and after the franchise relationship

16. Default and Termination: Grounds for termination and procedures

17. Post-Termination Obligations: Duties and restrictions after agreement ends

18. Dispute Resolution: Procedures for handling disputes including mediation and arbitration

19. General Provisions: Standard boilerplate clauses including notices, assignment, and amendment procedures