Franchisor Franchisee Agreement Template for Malaysia

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Key Requirements PROMPT example:

Franchisor Franchisee Agreement

"I need a Franchisor Franchisee Agreement for my restaurant chain expansion in Malaysia, starting from March 2025, with particular emphasis on quality control standards and supply chain requirements as we'll be providing proprietary ingredients to franchisees."

Document background
The Franchisor Franchisee Agreement is a crucial document used when establishing a franchise business relationship in Malaysia. It must comply with the Malaysian Franchise Act 1998 and associated regulations, which require franchise registration with the Franchise Development Division (MDTCC) before any franchise offer can be made. This agreement serves as the foundational document governing the entire franchise relationship, detailing the grant of rights, operational requirements, financial obligations, and protection of intellectual property. It includes comprehensive provisions for training, support, quality control, and territory rights, while incorporating mandatory elements required by Malaysian franchise law. The document is essential for both domestic and international franchisors looking to expand their business through franchising in Malaysia, providing legal protection and operational clarity for all parties involved.
Suggested Sections

1. Parties: Identification and details of the franchisor and franchisee

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

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

4. Grant of Franchise: Terms of franchise grant, territory rights, and exclusivity provisions

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

6. Franchise Fees: Initial franchise fee, royalties, and other ongoing payments

7. Intellectual Property Rights: Usage rights for trademarks, patents, copyright, and trade secrets

8. Training and Support: Franchisor's obligations regarding initial and ongoing training

9. Operations Standards: Required operational procedures and quality standards

10. Marketing and Advertising: Marketing obligations and advertising fund contributions

11. Reports and Audits: Financial reporting requirements and audit rights

12. Confidentiality: Protection of confidential information and trade secrets

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

14. Default and Termination: Grounds for termination and procedures

15. Post-Termination Obligations: Obligations of parties after agreement ends

16. Governing Law: Application of Malaysian law and jurisdiction

Optional Sections

1. Purchase of Products: Required when franchisor supplies products to franchisee

2. Equipment and Supplies: Needed when specific equipment or suppliers are mandatory

3. Computer Systems: Required for franchises with proprietary software or systems

4. Insurance: Detailed insurance requirements beyond basic coverage

5. Transfer Rights: Detailed provisions for franchise transfer or sale

6. Development Rights: For multi-unit development opportunities

7. Alternative Dispute Resolution: When parties prefer mediation or arbitration

8. Force Majeure: Extended provisions for unforeseen circumstances

Suggested Schedules

1. Schedule 1 - Territory: Detailed description of the franchisee's territory

2. Schedule 2 - Marks and IP: List of trademarks, patents, and other IP rights

3. Schedule 3 - Initial Fee and Royalties: Detailed fee structure and payment terms

4. Schedule 4 - Operations Manual Summary: Key elements of the operations manual

5. Schedule 5 - Initial Training Program: Training schedule and requirements

6. Schedule 6 - Minimum Performance Requirements: Performance standards and targets

7. Schedule 7 - Required Equipment and Supplies: Specifications for required equipment

8. Schedule 8 - Form of Confidentiality Agreement: Template for staff confidentiality agreements

9. Appendix A - Disclosure Documents: Required franchise disclosure documents

10. Appendix B - Standard Operating Procedures: Key operational procedures and standards

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Food & Beverage

Retail

Education & Training

Health & Fitness

Automotive

Professional Services

Beauty & Wellness

Home Services

Technology & Software

Fashion & Accessories

Child Care & Education

Healthcare Services

Relevant Teams

Legal

Operations

Franchise Development

Business Development

Compliance

Finance

Brand Management

Training & Development

Commercial

Risk Management

Intellectual Property

Relevant Roles

Chief Executive Officer

Franchise Development Manager

Legal Counsel

Operations Director

Business Development Manager

Compliance Officer

Brand Manager

Training Manager

Commercial Director

Finance Director

Intellectual Property Manager

Territory Manager

Franchise Operations Manager

Risk Management Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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