act 590 franchise act 1998

8/8/2019 Act 590 Franchise Act 1998

1/36

Franchise

LAWS OF MALAYSIA

RepRint

A 590

FrAnchISe Act 1998

Incorporating all amendments up to 1 January 2006

published by

the CommissioneR of law Revision, malaysia

undeR the authoRity of the Revision of laws aCt 968

in CollaboRation with

peRCetakan nasional malaysia bhd

2006

http://perjanjian.org

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2/36

FrAnchISe Act 1998

d R a ... 4 dcr 998

d c Gazette 3 dcr 998

Previous rePrint

First Reprint ... ... ... ... ... 2002


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3/36

3

LAWS OF MALAYSIA

A 590

FrAnchISe Act 1998

aRRanGement of seCtions

Part i

pReliminaRy

sc

. sr

. Cc

3. ac

4. irr

Part ii

appointment of ReGistRaR of fRanChises,ReGistRation, ETC.

5. a Rgrr, d Rgrr, etc .

6. Rgr

7. ac r rgr

8. ar r r c r rgr

9. ec rgr rc0. pr c

. a cr c

. nc , r, etc ., rgr

3. Cc r rgr

4. Rgr rc rr

5. Cr rcc

6. a rr

7. a g Rgrr c


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4/36

4 Laws of Malaysia Act 590

Part iii

fRanChise aGReement

sc

8. Rqr rc gr

9. p rc , etc .

0. pr g cr

. p rc r r

. pr f

3. pr , etc .

4. Rgr r r r rc r

5. frc r

6. C r

7. pr g r

8. wr

Part iv

ConduCt of paRties and teRmination of

fRanChise aGReement

9. Cc r

30. og rcr rc

3. tr rc gr

3. n-r rc gr

33. err r rc r

34. ex rc r

Part v

fRanChise advisoRy boaRd

35. frc ar br

36. fc frc ar br

Part vi

offenCes and penalties

37. oc r r, c, etc .


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38. orc cr

39. Gr

40. oc crr

4. Cg c

Part vii

enfoRCement

4. arz cr

43. pr g

44. src rr

45. src zr rr

46. src r

47. acc crz

48. l g z

49. pr rqr c r cq c

50. ex r cq c

5. a r

5. prc

Part viii

misCellaneous

53. s rc -cz jc Rgrr r

54. s rc rgr m

55. Rgr rc rg rcr

56. pc c cr c

57. ar

58. pr x

59. prc cr

60. Rg

6. sg r

sc


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6 Laws of Malaysia Act 590http://perjanjian.org

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7Franchise

LAWS OF MALAYSIA

A 590

FrAnchISe Act 1998

a ac r r rgr , rg, rc, r c r.

[8 October 1999, P.U. (B) 389/1999]

Be It enActeD sr p bg yg -pragg c c d ngr d R pr , r , :

Part i

pReliminaRy

So il

1. t ac c frc ac 998.

commm

2. t ac c r mr c Gazette.

Appliaio

3. () t ac rg m rc m.

() t rc mr

(a) r r rc

() m cc r m; r


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() m cc m;

(b) rc r r rg

m.

(3) ng ac c r rr , r cc r ac r r r , r ac r.

Ipaio

4. i ac, cx r rqr

r c, crcr, c, r r r r cc, r rc crc r r g , r r crccc c r r rg rc r rg rc;

rz cr cr rz rg mr r c 4 xrc r rcr ac;

cr c c cr c rcr mr;

rc crc r gr, r xrr , r r r r, r r r c

(a) rcr gr rc rg r ccrg rc r rcr rg r r rcr;

(b) rcr gr rc rg r, r r cr, r c r rc rr, rcr r rg rcr, c r rcr, rgr r , r c

r r , c rr, grc rg r rc c rr;


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9Franchise

(c) rcr rg r ccr rg rc r r rc r ccrc rc

; (d) rcr r r c

rc r cg cc r r r rc, rg, rg, r ccc;

(e) rr r gr rg, rc rqr r r r cr;

(f) rc r r r

rcr, r rc rcr rgr rr, rc crc r gc;

rc gr crc r gr rcr rc rc rc rr r r cr c

crc r gr r r rc g r drc s ac 993 [ Act 500];

rc rr r g gr rr rcr rc rr cr cr c rcr,cr r rcr r rc;

rc r rc gr

c, r ac

(a) r rc rgr r rcr;

(b) rc rgr r r rc;

rcr r gr rc rc c r rc rgr

r rc, r ac;


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r c r r, rc r, , g,r, g, , c, , gr, r r r c ;

r rc r grrg rcr rc r r, x, rc rcr;

mr mr r g crg r r r rg rc;

r c r r, crr, rr,c, r, j r r r;

rcr rcr rg r ac;

Rgrr, d Rgrr a Rgrr rc Rgrr frc, d Rgrr frc a Rgrr frc r c 5;

rg rg r ac;

ac c rg r ac.

Part ii

appointment of ReGistRaR of fRanChises,

ReGistRation, ETC.

Appoim of rgisa, Dpuy rgisa, etc.

5. () t mr c cr Rgrr frc c r d Rgrr frc,a Rgrr frc r cr cr r r ac.

() t Rgrr , jc gr rc

cr mr, rr xrc r crr r ac.


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Franchise

(3) t d Rgrr, a Rgrr r cr r c () r rc cr Rgrr.

(4) t d Rgrr rr xrc r crr Rgrr r ac.

(5) t Rgrr r d Rgrr rr xrc r crr a Rgrr r ac.

(6) a cr r c

c r g p C[ Act 574].

rgisaio

6. () a rcr rgr rc Rgrrr c r rc r.

() a r c c c c x mr rc 58 r rqr rgr r c.

Appliaio fo gisaio

7. () a rcr c rgr rc g Rgrr c rcr r gr

(a) c cr c crrcr ;

(b) rc gr;

(c) r rc;

(d) rg rc;

(e) c cc, c , rr, , r rcr

c;


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12/36

Laws of Malaysia Act 590

(f) c r r r c rqr Rgrr r r rg c.

() a r rcg c r r, Rgrr , r c, rqr c, r rcr r gr c, r r r c.

(3) t r c r rgr ()(f) r rqr r c () r rc, r r c, cgr r cr c.

(4) a c r c r r r r r.

(5) i r r c rqr rc () r c r rcrr gr c rqr r x gr Rgrr, c r rr

rc , cg r c g c.

(6) a r r g r rc r c c c.

Appoval o fusal of appliaio fo gisaio

8. () u rc c r rgr gr r r c rqr r c 7, Rgrr r r r c, g r r r.

() a c r rgr c r r c jc c c Rgrr .

(3) u rg c r c (),

Rgrr rqr c c rcr.


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3Franchise

(4) t Rgrr g c r c c r c.

effiv da of gisaio of fais

9. i rgr rc r r c8, rgr c r c g Rgrr c r g rqr r r c, rr , g c:

(a) Rgrr c c c rqr c 6

c 7(), () (3); r

(b) Rgrr rr r c 0 rrgr 6(3)(b).

Piod of ffivss

10. t rgr rc c c Rgrr rr r c

c r rcr , r, r r r rgr rc r ac.

Amdms o dislosu doums

11. () i r r cg cr c rgr 7()(a) (f), c r rcr r gr c ccrg rcr r.

() t c c () Rgrr.

(3) t Rgrr , , rqr r r c.

noi of suspsio, miaio, etc., of gisaio

12. () sjc c 3, Rgrr r ,r, r r r rgr rc, g c r rcr r c


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, cg r r c gr c r c c, g c r rcr r

r rr r r r rc c.

() ar xr r r c () r crg rr c r rcr r c, Rgrr c r rc r c r rr c.

(3) t Rgrr g c r rcr rc c r c () c c r c r c r c r rcr.

callaio fom gis

13. () a rcr , r rc r, Rgrr r cc rgr

rc r rgr.

() t Rgrr ccrg cc rgr rc r rgr rcr gr grg rg r rc.

rgisaio of fais bok

14. () a rc rr rgr Rgrr

g r:

(a) g rcr c r;

(b) g Rgrr r, c r Rgrr, rc rr r g rcrr.

() t rc rr rqr

rcr qc rc rr r c rgr.


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5Franchise

(3) t Rgrr c rgr rc rr.

(4) t c c (3) c cgrg rc rc rr c cc, , r, rr rgr rc rr.

(5) t rgr r c c r r r rgr, r r Rgrr.

(6) t r rg c r

r crrg r c 6 7 r c rc rr.

compulsoy pai

15. () a rcr rc c rc gr cr c r rc g gr rcr.

() t cr c c () c Rgrr.

(3) a r c c c c.

Aual po

16. () a rcr , r r

rr rgr, rr Rgrr rcr r.

() t rr c cr c c .

(3) t Rgrr r rr cr c

(a) rcr r r

c cr c cr ; r


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(b) rr , r, r r

r rgr rc c r

r r r rcg rc rc

cc c Rgrr crrc.

Appal agais rgisas disio

17. () a r ggr c Rgrr

r pr mr rcr r

r c cc

r.

() t mr c .

Part iii

fRanChise aGReement

rquims of fais agm

18. () a rc gr rg.

() a rc gr c

(a) cr rc

r rc;

(b) rrr rg gr rc;

(c) rc , r , r r r

c rc,

;

(d) g rcr;

(e) g rc;

(f) rc rg r r r

c rr, g rgr r r rgr rc;


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7Franchise

(g) c r c rc g rg r rc;

(h) cg r r

c (4);

(i) cr rg r r r crr r r rcr c rc;

(j) gr r r rc, rcr rg r rc r rcr;

(k) rcr c r rcr;

(l) r rc r r;

(m) c r r xr rcgr.

(3) fr c c () rr rc

gr .

(4) a rc gr cg r,c r crcg r rg , rg c rc r gr.

(5) u r rc gr rc (4), cr r x crr rcr rr gr r rcr r r c 9; r, r r rc.

(6) a r c c (5) c c.

Paym of fais f, etc.

19. i rcr rqr rc r gg rc gr, cg c r rc , rcr rg


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r r c r

r .

Poibiio agais disimiaio

20. i r rc cr ac

r rcr r r cr

rc rg rc crg r

r r rc , r, g, rc, q,

r r rg rc c cr c

c r rc c rc

rc cr,

x cc r cr

rc

(a) rc gr r , c

cr r r rc

;

(b) r r r rgr r g rc

r c c, rg,

xrc r c, r cg rqc;

(c) r r Gr r gc

r r rc r rc r

r r g;

(d) r r r r rc cr

cc r rc

r rc gr; r

(e) r r c crg

r ac rrr.

Paym of fais fs o oyaly

21. i rc rqr rc r r

rcr, r rc r r

r r cr c.


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9Franchise

Pomoio Fud

22. () a rcr rqr rc

r r r rc pr f (f).

() t f g r r cc r r rc r rc.

(3) i rc rqr rc 3, rcr c f, c r rgr c cc,

Rgrr r r cc c r.

(4) t c c (3) Rgrr gr rr r c 6.

(5) a r c c c c.

Pomoio fs, etc.

23. () i rc rqr rr r r r rcr, r r crc.

() t rqr r c () f.

rgisaio of ad mak o svi mak

24. a rcr rqr rgr r r r rcr r rc ccrc tr mrac 976 [Act 175] ( r rgr r ac) rg r rgr rc r c 7.

Fais m

25. a rc r r.


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cofidial ifomaio

26. () a rc g r gr rcr

rc c r r c r r

rgg rg rgz rcr

rg rc r r r r xr

r rr r rc gr.

() t rc c

r r gr g r c ().

(3) a r c c () r ()c c.

Poibiio agais simila busiss

27. () a rc g r gr rcr

rc crr

r r rc r

rc rg rc r r r r

xr r rr r rc gr.

() t rc c

r r gr g r c ().

(3) a r c c () r ()

c c.

Waivs void

28. () a c, r r rc

gr rrg rc cc

r ac .

() t c r r r rg

gr r xcg gr r rgrg

r c c c rc rc

r r rr c.


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Part iv

ConduCt of paRties and teRmination of

fRanChise aGReement

codu of pais

29. () a rcr rc c

r r r rc

rcc c.

() a rcr rc r g

r g cc:

(a) r r

rc;

(b) cc c cr r r

r crr r;

(c) cc r cr r rc

g r rcr,

rc r rc .

Obligaios of faiso ad fais

30. () a rcr g r c rc

crc rc rc r

rc.

() a rc rc , r, r

r r r rcgr.

(3) a rcr r c rc

r , c r r r

rc, rg, rg, r cc

c.

(4) a rcr rc rc cr

r .


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22/36

Laws of Malaysia Act 590

tmiaio of fais agm

31. () n rcr r rc gr

r xr xc r g c r c () (3).

() G c c,

(a) r rc c r rc gr r r r grr rcr rc;

(b) r rc r rc c

r r r c g rcr, c r , r rc r.

(3) G c c, rqr c r r rc, crcc c rc

(a) g rc rg r

crr r r rc r r;

(b) r rc ;

(c) cc cr c c r g c rcrr r r c rr; r

(d) r c r rcgr.

no-wal of fais agm

32. a rcr c c r r rc gr r x rc r cg rc r rrc r r rc gr rcr rc rcrg rc c xr rc r

(a) rc rr rc gr, r r rcr x r


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xr rc gr r rc gr c r rc, r cg cc

r r r rq xr rc gr;r

(b) rc g r c rcr r rc gr x rr xr rc gr.

eali miaio of fais m

33. ng c 5, rc r r r xr r r g crcc:

(a) r r rc gr gr r; r

(b) r cr c r r cr c

rc gr c r gr r rr r.

exsio of fais m

34. () a r xr rc r, rc g r c rcr x rc r.

() exc rc rc r rrc gr, rcr x rc r r r rc r x r r c ().

(3) a rc gr c rc r x c c c r r r r c r rc gr.


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Part v

fRanChise advisoRy boaRd

Fais Advisoy Boad

35. () tr frc ar br.

() t frc ar br c c r, xcg r, mr , r , .

(3) t r r c () r g xrc rrg rc.

(4) t r frc ar br rcc rr rcr r r rc.

Fuios of Fais Advisoy Boad

36. () t frc ar br mr Rgrr r rg rc, r rc rg rc.

() t mr Rgrr c c r rr frc ar br.

Part vi

offenCes and penalties

Off fo faud, di, etc.

37. a r , r rc r rc

(a) c r c rr r;

(b) r r c r r c c rr g;

(c) gg c, rcc r cr , cr r r r r c


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r, r r r rc,

c c.

Obsuio of offis

38. a r

(a) rc r r ac cg rc ac;

(b) c rqr rr

rz cr r ac; r

(c) r c g rzcr c r r c r rqr cr r r rrc r ac,

c c , cc, xcg rgg r r r r xcg x r .

Gal paly

39. () a r c c r ac rc xr r , cc,

(a) r r c, rgg r rgg;

(b) r c r q c, rgg r r r r xcg r r .

() u cg rcr r r c, cr

(a) cr rc gr rcr rc ;

(b) rr rcr r r c r rc; r


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(c) r rcr r g rcgr r g rc.

Off by body opoa

40. i c g r ac c crr, r c c rcr, gr, crrr r r cr crr r rrg c c cc, r r r x r r g r c crr, r g c g, c c , grgr r c cc crcc, r

(a) c c g,c r cc;

(b) r rc xrc gc r c c.

compoudig of offs

41. () t Rgrr , c rg pcprcr, c c c r r ac rcr mr cc g r r r c c c c c Rgrr xcg rc x r c

c r.

() a r r c () r c c, r rcr .

(3) i c r c r r c x r Rgrr gr, rc r c r g r r .


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(4) i c c r c (), rc rc c g r r c .

(5) a rc Rgrr r c r r fr Cf.

Part vii

enfoRCement

Auoizd offi

42. () t mr , rg, rz Rgrrr d Rgrr, a Rgrr r c cr xrc r rc r ac.

() i xrcg r rc r ac, rz cr rc r g cg r cr g mr .

Pow o ivsiga

43. () a rz cr g c rcr, rc rr r rc r r rg r cg ac.

() fr r c (), rz cr rr rcr, rc rr r rc

rr g cr cc ac.

(3) i r r c () (), c rg c c r ac, rz cr crrg g xrc r r r c g zc g Cr prcr C [ Act 594].

Sa by waa

44. () i r mgr, r r r c qr cr cr, r


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r c c r ac g r c r, mgr rr rzg rz cr r,

r r r r g, r c rc.

() a rz cr , r r rc (), rc z

(a) c , cc r r c, cgcrz , c c r r rc c r c c c;

(b) r, gr, cr, r, r r cr g rrg r g r rcr, rc rr r rc;

(c) r c r r r c c c c.

(3) a rz cr ccg rc r c() , r cr r r gg c, rc r

r c r.

(4) a rz cr g rc r rc (3) z, r , cc, c, crz , r, cr, r,, c r g c r r r g g crr c cr.

(5) wr, r r, z r ,

rcc r , cc, c, crz, r, gr, cr, r, , c r gz r c, zg cr , , c , cc, c, crz , r,gr, cr, r, , c r g rr cr c .

(6) a r , r, r, r r g rrr c (5) r r , cc, c, crz , r, gr,

cr, r, , c r g r r c c.


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9Franchise

Sa ad sizu wiou waa

45. i rz cr crcc rrr

c 44 r c r g rc rr r c g r c r c c c r , r, g rr, c cr r r xrc , rc r r rrr c 44 r r rz rr r c.

Sa of fmal pso

46. n r rc r c 44 r 45xc r r.

Ass o ompuizd daa

47. a rz cr ccg rc r c 44r 45 g cc crz r r cr r r.

Lis of igs sizd

48. () exc r c (), r ,cc, c, crz , r, gr, cr,r, , c r g z r c 44 r45, zg cr rr g z r c g ccr r c rc, r

g r r, r.

() wr r r cc, zg cr r g z cc r.

Pow o qui ada of pso aquaid wi as

49. () a rz cr g g r

ac rr rg rqr c r r r rz cr


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cq crcc c, r rqr.

() i r rqr, rzcr rr r mgr rr cr c r.

examiaio of pso aquaid wi as

50. () a rz cr g g r ac x r r cq c crcc c.

() t r g r qrg c rz cr, r r r q r c c x cr crg r r rr.

(3) a r g r c g r, r r r r r q.

(4) t rz cr g r r r r r r r c () (3).

(5) a r r c ,r , rc rg g r g r x r r r gg c r g r crrc .

Addiioal pows

51. a rz cr , r r xc ac, r r g:

(a) rqr rc rcr, cc, crz c rcr, rc rr

r rc c, x c ;


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3Franchise

(b) rqr rc c cr r r c r c r ac;

(c) c qr cr crr r ac c.

Posuio

52. n rc r ac c rg pc prcr.

Part viii

misCellaneous

Sal of fais o o-iiz subj o rgisasappoval

53. a rcr rc r m cz r ,

jc c c , Rgrr.

Sal of fais by foig i Malaysia

54. () a rg r rc m r m cz c Rgrr.

() t Rgrr r r r c rc () gg r r r.

(3) a c c r r c jc c c Rgrr .

rgisaio of fais of foig faiso

55. () ng c 6, rc rg

rcr rgr rc Rgrr g rcr c r.


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() t Rgrr c rgr rc rrr c ().

Publi ispio of dislosu doums

56. t Rgrr c c crc Rgrr , , c rg r rcr r rc r r rc r cr c cr r rr cr.

Advism

57. () a r , r r r rg r rc r ac Rgrr rg c r r r c, r r r r c rr r r Rgrr, r r xr c Rgrr.

() t Rgrr , rr, r rg , r, g r c.

(3) a r c c () c c.

Pow o xmp

58. t mr , rr Gazette, x,jc c c , rr c r r r r r r r ac.

Poio of offis

59. n c r rc rg, r cr g

(a) Rgrr, d Rgrr, a Rgrr r cr r r rz r ac r r


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33Franchise

cc r rc c rr r r r crrg c ac;

(b) r r r r cc r rc

c r rr r rr, rc r rc mr, Rgrr,d Rgrr, a Rgrr, r cr rr rz r ac c g r cr r r r .

rgulaios

60. () t mr rg r r g r:

(a) rcrg r, rcr r rqrr r ac;

(b) rcrg r c crc;

(c) rcrg r crg Rgrr

rc rgr rc rr ccg rg c r crg;

(d) rcrg rcr r r ac;

(e) rcrg rcr rqr r rgr rc gr r r m rcr r rc rr r cc ac;

(f) rcrg rr r rc frc ar br;

(g) rg r c r r r c ,r cr r gg c , r ac r r r.

() t rg r c () rcr c cr rg c rcr xcg

rgg r r r r xcg r r.


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Savigs ad asiioal

61. a rcr r rc rr gr r

r m rc rc r cc ac , r r cc, rgr rc Rgrr ccrc rcr rcr rqrr ac.


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35Franchise

LAWS OF MALAYSIA

A 590

FrAnchISe Act 1998

list of amendments

ag sr i rc r

nil


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LAWS OF MALAYSIA

A 590

FrAnchISe Act 1998

list of seCtions amended

sc ag r i rc r

nil


act 590 franchise act 1998

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