Franchise Act Compliance: Registration and Disclosure
The Franchise Act requires a franchise to be registered with the Registrar of Franchises before it is advertised or operated in Malaysia, and the registration duty can fall on the franchisor, the Malaysian master franchisee, or a sub-franchisor depending on the structure. Operating, advertising or offering an unregistered franchise is a compliance failure with real penalties attached, not a paperwork formality that can be cleaned up later.
This one-day programme is for legal, business development and franchise operations teams at franchisors, master franchisees and companies evaluating a franchise model for the first time. It works through the registration process, the mandatory disclosure document and what it must contain, the terms the Act requires every franchise agreement to carry, and the renewal, termination and franchisee review rights that shape how a franchise relationship can end. Orbix is an independent training provider and has no role in the Registrar of Franchises' registration process.
HRD Corp SBL-Khas Claimable
Programme Agenda
9:00 AM - 9:15 AM
Welcome and Programme Overview
Introduction to the session, objectives, and housekeeping.
9:15 AM - 10:15 AM
What the Franchise Act Covers and Who Must Register
The statutory definition of a franchise and the features that bring an arrangement within the Act, and who carries the registration duty across a franchisor, a Malaysian master franchisee and a sub-franchisor structure.
10:15 AM - 10:30 AM
Break
10:30 AM - 11:30 AM
The Registration Process
Registering a franchise with the Registrar of Franchises before it is advertised or offered, the information and documents a registration application requires, and the consequence of advertising, offering or operating an unregistered franchise.
11:30 AM - 12:30 PM
The Mandatory Disclosure Document
What a franchise disclosure document must contain, when it must be given to a prospective franchisee, and why an incomplete or late disclosure document undermines the registration even if the franchise itself is otherwise registered.
12:30 PM - 1:30 PM
Lunch
1:30 PM - 2:20 PM
Mandatory Terms in the Franchise Agreement
The terms the Act requires every franchise agreement to contain, regardless of what the parties might otherwise prefer to negotiate, and the practical drafting discipline of building a template agreement around those mandatory terms from the start.
2:20 PM - 3:15 PM
The Franchisee's Review Period and Protections
The cooling-off or review period a prospective franchisee is entitled to before being bound, and the other franchisee protections built into the Act that a franchisor's sales process needs to accommodate rather than work around.
3:15 PM - 3:30 PM
Break
3:30 PM - 4:45 PM
Renewal, Termination and Enforcement
Restrictions on how and when a franchise agreement may be terminated or not renewed under the Act, and the penalties that follow from operating an unregistered franchise or from a disclosure document that falls short.
4:45 PM - 5:00 PM
Wrap-Up and Q&A
Key takeaways, next steps, and close.
Key Outcomes
- Determine whether an arrangement falls within the Franchise Act's definition of a franchise
- Identify who carries the registration duty in a given franchise structure
- Prepare a disclosure document that meets the Act's mandatory content requirements
- Build a franchise agreement template around the Act's mandatory terms
- Accommodate the franchisee review period in the sales and onboarding process
- Apply the Act's renewal and termination restrictions correctly
Training Mode Physical / Online / Hybrid / e-learning
HRD Corp SBL-Khas Claimable
Level Foundation. For legal, business development and franchise operations teams at franchisors, master franchisees, and companies evaluating a franchise model.
Duration 1 Day (8 Hours) | 9:00 AM to 5:00 PM
Venue In-house at the client's premises, or delivered via the client's preferred platform (Microsoft Teams, Zoom, or equivalent)
Assessment A disclosure document and agreement checklist exercise against a sample franchise structure, plus a written knowledge check
Certificate Certificate of Completion issued to all participants upon full attendance