Franchise Act 1998

Original Language Title: Franchise Act 1998

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Laws of Malaysia Act 590 Reprinting franchise Act 1998 Contains all amendments to 1 January 2006 published by the Commissioner of law revision, under the authority of Law Revision Act 1968 In collaboration with PerCetakan naSional malaySia bhD 2006 laws of Malaysia Act 590 franchise Act 1998 the date of Royal Assent............ 4 December 1998 date of publication in the Gazette of ... ... more 31 December 1998 Reprint before Reprinting the first............ 2002 Francais 3 laws of Malaysia Act 590 franchise Act 1998 arrangement of sections part i preliminary section 1. short title. Commencement 3. Application 4. interpretation part ii appointment of Registrar of franchises, registration, etc.
5. Appointment of Registrar, Deputy Registrars, etc.
6. Registration 7. Application for registration 8. approval or rejection of the application for registration 9. franchise registration date comes into operation 10. the period in force 11. Amendments to document disclosure 1. notice of suspension, termination, etc., of registration 13. Cancellations from the register 14. Franchise broker registration 15. the practice of compulsory 16. annual report 17. appeal against the decision of the Registrar of the 4 laws of Malaysia Act 590 part iii franchise agreements section 18. the requirements of the franchise agreements 19. The payment of franchise fees, etc.
0. the prohibition against discrimination 1. The franchise fee or royalty payment. Promotion Fund 3. Promotional fees, etc.
4. Registration of a trademark or service mark 5. the franchise period 6. confidential information 7. prohibition against similar business 8. Waiver invalid part iV conduct of the parties and the termination of the franchise Agreement 9. the behavior of the 30. obligations of the franchisor and franchisee 31. Termination of franchise agreements 3. not renew franchise agreements 33. Early termination of the franchise period is 34. Extension of franchise part V 35 Franchise Advisory Board. the Advisory Board Franchise 36. The functions of the Advisory Board Franchise part Vi offences and penalties 37. offence for fraud, perdayaan, etc.
Francais 5 38. prevents officers 39. General penalties 40. offences by body corporate 41. Compounding of offences part Vii Enforcement 4. 43. Authorized officers authority to investigate 44. Search with warrant 45. Search and seizure without a warrant 46. Examination of a woman's 47. access to computerized data 48. List of things seized 49. the power to require the attendance of the person who knew about the case of 50. Examination of person case 51. the extra power 5. Prosecution part Viii Miscellaneous 53. The sale of the franchise to non-citizens subject to approval by Registrar 54. Franchise sales by foreigners in malaysia 55. Registration of foreign franchisor franchisee 56. Inspection of public disclosure documents 57. Ad 58. power to exclude 59. Protection of officers 60. Regulations 61. savings and transitional section 6 laws of Malaysia Act 590 Francais 7 laws of Malaysia Act 590 franchise Act 1998 an act to provide for the registration, and to regulate, franchising-franchise, and for matters connected therewith.
[October 8, 1999, P.U. (B) 389/1999]
Be it enacted by the Seri Paduka baginda yang di-Pertuan agong with the advice and consent of the Dewan negara and Dewan rakyat in Parliament assembled, and by the authority of the same, as follows: part i preliminary short title 1. This Act may be cited as the franchise Act 1998.
Commencement 2. This Act come into force on such date as the Minister may, by notification in the Gazette.
Application of the 3. (1) this Act applies throughout malaysia for the sale of any franchise in malaysia.
() The sale of a franchise is characterized in malaysia if — (a) an offer to sell or buy a franchise — (i) made in malaysia and received in or outside malaysia; or 8 laws of Malaysia Act 590 (ii) executed outside malaysia and received in malaysia; and (b) the franchised restaurants business operated or to be operated in malaysia.
(3) no nothing in this Act affects the provisions of any other written law, but if there is any discrepancy between the provisions of this Act with the provisions of any other written law, the provisions of this Act shall apply.
interpretation 4. In this Act, unless the context otherwise requires — "this Act" includes any regulations made under this Act;
"franchise broker" means a person who carries on business as an agent or representative of any franchisor to sell the franchise to any person with a specific reply but does not include any Director, officer or employee of the franchisor or franchisee;
"cap" include the trademark, service mark, symbol, design, brands, titles, labels, tickets, name, signature, Word, letter or any affiliates;
"prescribed" means prescribed by regulations made under this Act;
"disclosure document" means any document disclosure prescribed by the Minister;
"franchise" means a contract or agreement, whether express or implied, whether orally or in writing, between two or more persons which — (a) the franchisor provides the franchisee the right to conduct business in accordance with the franchise system specified by the franchisor for a term specified by the franchisor;
9 (b) franchise-franchisor give the franchisee the right to use the trademark, or trade secrets, or any confidential information or intellectual property, which is owned by the franchisor or contact the franchisor, and includes circumstances when the franchisor, which is a registered user, or licensed by others to use, any intellectual property, provide any underlying rights to allow the franchisee using the intellectual property;
(c) the franchisor owns the right to perform continuous control over the term of the franchise to operating our business franchise-holder in accordance with the franchise system;
(d) the franchisor has the responsibility to provide assistance to the franchisee to operate its business includes any assistance as the provision or supply of materials and services, training, marketing, and business assistance or techniques;
(e) consideration of the grant of the rights, the franchisee is required to pay a fee or other consideration; and (f) the franchisee operating separately from the franchisor, franchisee and its relationship with the franchisor cannot at any time be deemed to be a partnership, contract of service or of the Agency;
"advertising" means any form of publication, circulars, notices, or any oral or written communications, whether aired over electronic media, or any other broadcast media, or any form of electronic means of communication to the public for the purpose of offering the sale of franchises or promote the sale of franchises;
"m e n t e r i e r t i n y a m e n t e r i y a n g r a d a m a s a i n i is entrusted with the responsibility for matters relating to the franchise;
10 laws of Malaysia Act 590 "person" includes a natural person, Corporation, partnership, Association, firm, joint venture or trust;
"authorized officer" means an officer who is authorised in writing by the Minister under section 4 to exercise enforcement powers under this Act;
"franchisor" means the person who gave the franchise to franchise holder and includes a master franchise holders in respect of its relationship with subfrancais, unless specified otherwise in this Act;
"the franchise holder" means the person to whom the franchise was provided and included, unless specified otherwise in this Act — (a) the franchise holder of the master in respect of its relationship with the franchisor; and (b) the subfrancais in respect of its relationship with the master franchise holder;
"master franchisee" means a person authorized by the franchisor to mensubfrancaiskan to others, on their own, at the cost of the franchise owned by the franchisor;
"Registrar", "Deputy Registrar" and "Assistant Registrar" means the Registrar of their respective Franchises, Deputy Registrars and assistant registrars Franchise franchise appointed under section 5;
"regulations" means regulations made under this Act;
"franchise agreement" means a contract or agreement made between the franchisor with franchise-holder in respect of a franchise in return for any form of consideration but does not include any contract or agreement made for the purposes of direct selling as provided by the direct selling Act 1993 [Act 500].
Francais 11 part ii appointment of Registrar of franchises, registration, etc. Appointment of Registrar, Deputy Registrars, etc.
5. (1) the Minister may appoint a public officer as the Registrar of Franchise and such number of Deputy Registrars, assistant registrars Franchise Franchise and other officers as may be necessary for the purposes of this Act.
() The Registrar shall, subject to the general direction and control of the Minister, carrying out the duties imposed and exercise of the powers conferred upon him under this Act.

(3) the Deputy Registrars, assistant registrars and other officers appointed under subsection (1) shall be under the direction and control of the Registrar.
(4) the Deputy Registrar may perform all the duties and exercise all powers conferred to the Registrar under this Act.
(5) the Registrar or Deputy Registrar may perform all the duties imposed and exercise all powers conferred to the Assistant Registrar under this Act.
(6) all officers appointed under this section shall be deemed to be public servants within the meaning of the Penal Code [Act 574].
Registration 6. (1) a franchisor shall register francaisnya with the Registrar before he can make an offer to sell a franchise to any person.
() A person who fails to comply with this section shall be guilty of an offence unless he has been exempted by the Minister under section 58 of the requirements to register under this section.
1 laws of Malaysia Act 590 application for registration 7. (1) the franchisor shall make application to register francaisnya by submitting an application to the Registrar in the prescribed form together with — (a) a disclosure document, complete with all the details that need to be completed;
(b) a sample of the franchise agreements;
(c) the franchise manual;
(d) the franchise training manual;
(e) a copy of the latest audited accounts, financial statements, and reports, if any, auditors and directors of the applicant; and (f) any other information or additional documents required by the Registrar for the purpose of determining the application.
() At any time after receipt of an application and before the application is determined, the Registrar may, by notice in writing, require that the applicant, or the Director or Manager of the applicant, to provide information or additional documents.
(3) the matters set out under paragraph (1) (f) or requirement under subsection () can differ between different applicants, or class, category or description of different applicants.
(4) an application under this section may be revoked at any time before the application is approved or rejected.
(5) where any information or additional documents required under subsection () is not provided by the applicant or Director or the Manager, within the time specified in the requirements or any extension of time granted by the Registrar, the application shall be deemed to have withdrawn and cannot continue, but without prejudice to any new applications made by the applicant.
Francais 13 (6) any person who gives information or false or misleading documents under this section shall be guilty of an offence.
approval or rejection of the application for registration 8. (1) on receipt of an application for registration together with the information or documents required under section 7, the Registrar may approve or reject the application, and shall give reasons for such rejection.
() An application for the registration of approved under this section may be made subject to any conditions imposed by the Registrar.
(3) upon approval of an application under subsection (1), the Registrar may require the applicant to pay any amount of the fee prescribed.
(4) the Registrar shall give the applicant written notice of its decision under this section.
franchise registration date comes into operation 9. If the registration franchise approved under section 8, the registration shall become effective on the date specified in the written notice given by the Registrar and that date shall be the date of filing all the information or documents required unless, prior to that, one of the following occurs: (a) the Registrar has informed the applicant that the applicant has not complied with the requirements of section 6 and subsection 7 (1) , () and (3); or (b) the Registrar has issued an order under section 10 or paragraph 16 (3) (b).
duration of effect 10. Registration of an franchise shall remain in force unless the Registrar to issue an order that is made by notice in writing to the applicant or franchisor to 14 laws of Malaysia Act 590 suspend, terminate, or refuse or prohibit the sale of franchise registration under this Act.
Amendments to document disclosure 11. (1) if there is any material change in the disclosure document referred to in paragraph 7 (1) (a) and (f), the applicant or Director or Manager, shall amend the document in accordance with the prescribed form.
() A document in subsection (1) shall be filed with the Registrar.
(3) the Registrar may, at any time, require additional information about the amendments made under this section.
notice of suspension, termination, etc., of registration 12. (1) subject to section 13, if the Registrar proposes to suspend, terminate, or refuse or prohibit the sale, registration of a franchise he shall give the applicant or the franchisor written notice of his intention to do so, stating the type of action proposed and reason which he intends to take the action, and he shall give the applicant or the franchisor opportunity to make representations in writing about that within the period of fourteen days from the date of delivery of the notice.
() After the expiry of fourteen days referred to in subsection (1) and after considering any representations made by the applicant or the franchisor under that subsection, the Registrar shall decide whether to proceed with the proposed action or not to take further action.
(3) the Registrar shall give the applicant or the franchisor written notice of its decision under subsection () and such decision shall come into force from the date of the written notice served on the applicant or the franchisor.
Francais 15 Cancellation of express 13. (1) the franchisor may, at any time after the franchise period, apply to the Registrar for cancellation of registration the franchise of Express.
() The Registrar shall accordingly cancel the franchise of express registration if he is satisfied that the franchisor no longer provide rights under the franchise.
Franchise broker registration 14. (1) the franchise broker shall register himself with the Registrar according to the following ways: (a) using the prescribed application form; and (b) by filing with the Registrar any information, which shall be determined by the Registrar, in respect of any representative or agent appointed by the franchise broker.
() the franchise brokers must meet all the requirements laid down concerning the eligibility of franchise brokers before he can be registered.
(3) the Registrar may impose conditions for the registration of a person Franchise broker.
(4) the conditions in subsection (3) may include conditions governing the sale of franchises by franchise broker and conditions of conduct, suspension, termination, prohibition or refusal of registration of a person Franchise broker.
(5) registration under this section shall be effective for one year from the date of registration, unless determined otherwise by the Registrar.
(6) the provisions in respect of confidential information and prohibition of doing business similar in sections 6 and 7 shall also apply to a franchise broker.
16 laws of Malaysia Act 590 mandatory practices 15. (1) the franchisor shall submit a disclosure document franchise agreements to a franchisee at least ten days before the franchisee signs an agreement with the franchisor.
Disclosure Document () in subsection (1) shall be the same document submitted to the Registrar.
(3) a person who fails to comply with this section shall be guilty of an offence.
annual report 16. (1) every year franchisor shall, within thirty days from the anniversary date of the registration, submit a report to the Registrar in the prescribed form.
() the report shall contain a disclosure document that has been updated.
(3) the Registrar may review the disclosure document and — (a) inform the franchisor if any additional information or modification of the disclosure document should be included or deducted; or (b) issue an order to suspend, terminate, or refuse or prohibit the sale of franchise registration in the public interest or for the purpose of protecting prospective franchisee until any deficiency disclosed by the Registrar has fixed.
appeal against the decision of the Registrar of the 17. (1) any person aggrieved by any decision of the Registrar under this section may appeal to the Minister in the prescribed manner within one month from the date of the decision diberitahukan to that person.
Francais 17 () decision of the Minister of the appeal shall be final.
Part iii franchise agreements will of franchise agreement 18. (1) the franchise Agreement must be in writing.
() The franchise Agreement shall include but not limited to — (a) the name and description of products and business under franchise;
(b) territorial rights granted to the franchisee;
(c) the franchise fee, fees, royalties or promotion of any kind of incidental charges that may be imposed on a franchise-holder, if any;
(d) obligations of the franchisor;
(e) the obligation of the franchisee;

(f) the right of the franchisee to use the trademark or any other intellectual property, while waiting for registration or after the registration of franchises;
(g) the conditions under which the franchise holder can assign rights under the franchise;
(h) a statement about the cooling off period as provided in subsection (4);
(i) description of the trademark or any other intellectual property owned by or related to franchisor of the franchise;
(j) if the agreement is related to the master franchisee, franchisor identity and rights acquired by the master franchisee of the franchisor;
(k) the type and details of the assistance given by the franchisor;
18 laws of Malaysia Act 590 (l) franchise period and terms of renewal; and (m) the effect of expiration or termination of franchise agreements.
(3) failure to comply with subsection () to make the franchise agreement null and void.
(4) the franchise Agreement shall have a cooling-off period, which shall be determined by both contractual parties but shall not be less than seven days, and during that period the franchisee has the option to terminate the deal.
(5) upon the expiration of the franchise agreement under subsection (4), an amount to cover reasonable expenses incurred by the franchisor to provide agreement can be kept by the franchisor from the initial fee paid under section 19; However, all other money shall be refunded to the franchisee.
(6) a person who fails to comply with subsection (5) shall be guilty of an offence.
The payment of franchise fees, etc.
19. If the franchisor requires the franchisee to make any payment before signing the franchise agreement, including costs that are part of the franchise fee, franchisor shall specify in writing the purpose of the payment and conditions for the use and repayment of the money.
prohibition against discrimination 20. Franchise to be unfair and in violation of this Act if any franchisor are discriminatory in a way that is not reasonable and markedly between franchise holders who operate franchise fees offered or made for franchise fees, royalties, goods, services, equipment, rentals or advertising services if such discrimination can cause harmful competition any franchisee that compete with Franchise franchise holders receive interest from the 19th such discrimination , unless and to the extent that any classification or discrimination between franchise holders are — (a) based on the franchise granted at different times, and discrimination that is reasonably required in connection with the time differences;
(b) in relation to one or more programmes to make available to the franchise is not enough capital, training, business experience or education, or lack of other qualifications;
(c) in connection with efforts by the Government or any of its agencies to promote diversity in the products or services or format or design business;
(d) in relation to efforts by a franchisee or more to repair deficiencies in the conduct of business franchised restaurants or default in franchise agreements; or (e) based on other differences that are reasonable having regard to the purposes of this Act and shall not be made sewenang-wenang.
The franchise fee or royalty payment 21. If the franchisee is required to pay any franchise or royalty fees to franchisor, franchise fee or royalty rate shall be the rate provided in the disclosure document.
Promotion Fund 22. (1) the franchisor which requires someone franchisee make any payment for the purpose of promotion of a franchise should establish Promotion Fund ("Fund").
() the Fund shall be managed under a separate account and shall be used only for promotional products under the franchise.
0 the laws of Malaysia Act 590 (3) if the franchisee is required to make any payment under section 3, franchisor shall submit the financial statements of the Fund, which has be endorsed by public accountants, registered with the Registrar within thirty days after the expiration of the term of the finance on.
(4) the Financial Statement in subsection (3) shall be submitted to the Registrar together with the annual report under section 16.
(5) a person who fails to comply with this section shall be guilty of an offence.
promotional fees, etc.
23. (1) where a franchisee is required to make any payment for the purpose of promotion or promotional fee to the franchisor, the costs shall be at the rate provided in the disclosure document.
() the payment required to be made under subsection (1) shall be deposited in the Fund.
Trademark registration mark 24 service. Franchisor is required to register its trade mark or its service marks associated with francaisnya Trademark Act 1976 [Act 175] (if can be registered under the Act) prior to applying for registration of francaisnya under section 7.
25 franchise period. the franchise period shall not be less than five years.
Confidential information 26. (1) the franchise holder shall give written guarantees to the franchisor that franchisee and its employees shall not disclose to any person any information contained in the operating manual 1 Franchise or acquired during the training organised by the franchisor during the period of the franchise agreement and for a period of two years after the franchise agreement expired or terminated earlier.
() The franchisee and its employees shall abide by the guarantees granted under subsection (1).
(3) a person who fails to comply with subsection (1) or () is guilty of an offence.
prohibition against similar businesses 27. (1) the franchise holder shall give written guarantees to the franchisor that franchise holders and employees-employees are not going to conduct any other business similar to franchised restaurants business operated by the franchisee during the period of the franchise agreement and for a period of two years after the franchise agreement expired or terminated earlier.
() The franchisee and its employees shall abide by the guarantees granted under subsection (1).
(3) a person who fails to comply with subsection (1) or () is guilty of an offence.
Waiver invalid 28. (1) any conditions, stipulations or provisions in franchise agreements to be binding on the holder of a franchise so waive compliance with any of the provisions in this Act shall be invalid.
() This section does not prevent any person from making a settlement agreement or perform general relief in respect of a civil action which is likely to be or actually filed in respect of the franchise and also does not preclude arbitration of any claim.
Laws of Malaysia Act 590 part iV conduct of the parties and the termination of the Franchise Agreement the behavior 29. (1) the franchisor and the franchisee shall act honestly and legally binding laws and shall strive to continue the franchise the best business practices over time and place.
() The franchisor and the franchisee while they deal with each other shall avoid behavior the following: (a) assessment of excessive and unreasonable about fees and prices;
(b) conduct which is not necessary and not reasonable in relation to the risks incurred by one party; and (c) behavior with its reasonable need to protect business interests of franchisor, franchisee or franchise system that is valid.
obligations of the franchisor and franchisee 30. (1) the franchisor shall give written notice of breach of contract by the franchise holder and gives the franchise holder time to remedy the breach.
() The franchisee shall pay franchise fees, royalties, fees promotion or any other charges provided in the franchise agreement.
(3) a franchisor shall provide assistance to the franchisee to operate its business, such as the provision or supply of materials and services, training, marketing and business assistance or techniques.
(4) the franchisor and the franchisee shall protect the interests of consumers at all times.
Francais 3 termination of franchise agreements 31. (1) no franchisor may terminate the franchise agreement before the expiration date unless a good reason provided for in subsection () and (3).
() "Good reason" shall include, but not limited to — (a) the failure of the franchise holder to comply with any of the franchise agreement or any other agreement made between the franchisor to the franchisee; and (b) the failure of the franchise holder to remedy the breach that has been committed or any of its employees within the period specified in the written notice provided by the franchisor, which cannot be less than fourteen days, for the default recovery.
(3) "good reason" to be included, but without the requirements of notice and an opportunity to remedy the breach, the circumstances when the franchise holder —

(a) make the franchise rights of assignment for the benefit of creditors or the disposal of its kind the franchise's assets to any other person;
(b) leave the franchise business purpose;
(c) convicted of a criminal offence which significantly damage the reputation associated with the trademark or any other intellectual property of the franchisor; or (d) is repeatedly fails to comply with the terms of the franchise agreement.
not renew franchise agreements 32. Franchisor commits an offence if he refused to renew franchise agreements or extend the franchise without paying compensation to the franchisee whether 4 laws of Malaysia Act 590 by way of purchase or other means at a price agreed upon between the franchisor to the franchisee after taking into account the reduction in the value of the franchised restaurants business due to the expiry of the franchise if — (a) the franchise holder is blocked by franchise agreements , or by the refusal of franchisor at least six months before the expiration date the franchise agreement to waive any part of franchise agreements that prohibit the franchise holder, rather than continue to run in the same business substantially under the cap to another in the same area after the expiry of the franchise agreements; or (b) the franchisee is not given a written notice of intention not to renew the franchisor franchise agreement at least six months before the expiration date of the franchise agreements.
Early termination of the franchise period 33. Notwithstanding section 5, the franchise period may be terminated before the expiry of a minimum of five years in the following circumstances: (a) if both parties in the agreement the agree with the termination of the franchise; or (b) if the Court decides that there are certain conditions in the franchise agreements that justify the agreement is terminated earlier than the minimum period.
Extension of franchises 34. (1) at any time before the expiry of the franchise, the franchise holder must be in accordance with its notice to the franchisor to extend the franchise.
() except when the franchise holder broke the terms of the previous franchise agreement, franchise-franchisor 5 shall extend the franchise to an other period if the franchisee has applied for extension of the period in accordance with subsection (1).
(3) the franchise agreements francaisnya period extended shall contain conditions that are similar or not less favorable than the terms in the previous franchise agreement.
Part V Advisory Board Franchise Advisory Board franchise 35. (1) the Advisory Board established Franchise.
() the franchise Advisory Board shall consist of people, their numbers not exceeding fifteen people, who may be appointed by the Minister from time to time.
(3) the members appointed under subsection (1) shall be those who have knowledge and extensive experience in matters relating to the franchise.
(4) the members of the Advisory Board Franchise can receive such remuneration for their services.
the functions of the Advisory Board franchise 36. (1) the Advisory Board shall advise the Minister of Franchise and the Registrar on matters relating to the franchise, and the Administration and enforcement of appropriate laws relating to the franchise.
() the Minister and the Registrar shall not be bound to act on advice or report the Advisory Board Franchise.
6 laws of Malaysia Act 590 part Vi offences and penalties offences for fraud, perdayaan, etc.
37. A person who, either directly or indirectly — (a) use any tricks or plans to cheat;
(b) make any statement is not true about material fact or not stating fact material that causes his statement is misleading;
(c) engage in any act, practice or course of business, acts or will act as fraud or perdayaan for any person, in relation to an offer to sell or sale of franchise, shall be guilty of an offence.
Prevent officer 38. A person who — (a) prevent any person appointed under this Act who act in accordance with this Act;
(b) fails to comply with any requirement properly made to him by an officer authorized under this Act; or (c) without reasonable cause does not give an officer authorised any assistance or information required to reliably by the officer for the purposes of the implementation of its obligations under this Act, is guilty of an offence and, on conviction, be liable to a fine not exceeding two thousand ringgit or to imprisonment for a term not exceeding six months or to both.
Francais 7 Penalties am 39. (1) any person who commits an offence under this Act for which no penalty expressly provided, can on conviction — (a) for the first offence, to a fine not less than five thousand dollars and not more than fifty thousand dollars; and (b) for a second or subsequent offence, to a fine of not less than ten thousand ringgit or to imprisonment for a term not exceeding five years or both.
() when the judge franchisor for the first offence, the Court may — (a) declare a franchise agreement between franchisor with any franchisee to be null and void;
(b) order the franchisor repay any form of payment diperolehnya than any franchise holder; or (c) prohibit the franchisor from making any new franchise agreement or appoint any new franchise holders.
offences by body corporate 40. If any offence against any provision of this Act has been committed by a body corporate, any person who at the time of the offence committed was a Director, Manager, Secretary or other similar officer of the body corporate in it or purporting to act on any such property, or in any way or to any extent is responsible for the management of any Affairs of the Corporation , or assist in the management of such, is deemed to have committed such offence unless, after taking into account the type of its functions on the properties and all the circumstances, he proves — (a) that the offence was committed without the knowledge, consent or pembiarannya; and 8 laws of Malaysia Act 590 (b) that he took all reasonable precautions and exercise due diligence to prevent the Commission of the offence.
Compounding of offence 41. (1) the Registrar may, with the written consent of the public prosecutor, mengkompaunkan any offence which has been committed by any person under this Act and prescribed by the Minister as the offense can compound with make an offer in writing to the person suspected to have committed the offence to mengkompaunkan them on payment to the Registrar a sum of money not exceeding fifty per cent of the amount of the maximum fine for the offence within the time stated in the offer.
() An offer under subsection (1) may be made at any time after the offence is committed, but before any prosecution for him started.
(3) if the amount stated in the offer is not paid within the time stated in the offer or in any extended period granted by the Registrar, a prosecution for the offence may be commenced at any time after that to the person to whom the offer is made.
(4) If an offence is compounded under subsection (1), no prosecution shall be instituted in respect of the offence against a person to whom an offer to compound that has been made.
(5) all sums received by the Registrar under this section shall be paid into and form part of the Federal Consolidated Fund.
Part Vii Enforcement of authorized officers 42. (1) the Minister may, in writing, authorize the Registrar or any Deputy Registrar, Assistant Registrar or Franchise 9 public officers to exercise the powers of enforcement under this Act.
() In the exercise of any powers of enforcement under this Act, an officer authorized shall upon request submit to the person against whom he is acting authority card signed Minister and issued to him.
authority to investigate 43. (1) authorized officers can investigate the activities of the franchisor, franchise broker or franchise-holder for the purpose of determining whether he is complying with this Act.
() for the purposes of subsection (1), the authorized officer may issue an order to the franchisor, franchise broker or franchisee to help implement his investigation and ensuring compliance with this Act.
(3) in addition to its powers under subsection (1) and (), in any case in relation to the Commission of an offence under this Act, a person authorized officers carrying out the investigation may exercise all or any powers in connection with police investigations in cases of arrest can be given under the criminal procedure code [Act 594].
Search with warrant

44. (1) where in the opinion of someone magistrate, based on information given in writing and after such inquiry as he thinks necessary, that there is reasonable cause to believe that an offence under this Act is being or has been committed in any premises, the magistrate may issue a warrant empowering any authorized officer named therein to enter the premises at any reasonable time either during the day or night , with or without assistance and if necessary by force.
30 laws of Malaysia Act 590 () an authorized officer may, in the premises entered into under subsection (1), search and seize — (a) a copy of any book, account or other document, including computerized data, containing or suspected with reasonable contains information about any suspected offences have done so;
(b) any cap, signs, cards, letters, pamphlets or other device or thing that reflects or implies that that person is the franchisor, franchise broker or franchisee;
(c) any documents or other items with its reasonable believed to give evidence of the Commission of the offence.
(3) an authorized officer who is carrying out a search under subsection (1) may, if in its opinion is necessary to do so reasonably required for the purposes of the investigation of the offence, examine any person residing in or in the premises.
(4) an officer d iber power make a search of a person under subsection (3) may seize, detain or take possession of any books, accounts, documents, computerized data, cap, cards, letters, pamphlets, device or thing found on that person for the purpose of surveys conducted by the officer.
(5) where, by reason of the type, size or its cost, it is not practical to transfer any books, accounts, documents, computerized data, marks, signs, cards, letters, pamphlets, device or thing seized under this section, the officer shall seize, in any way, prevent books, accounts, documents, computerized data, marks, signs, cards, letters, pamphlets, device or article in the premises or in the container in which it was found.
(6) any person who, without lawful authority, break, tamper with or damage the lak referred to in subsection (5) or transfer any books, accounts, documents, computerized data, marks, signs, cards, letters, pamphlets, device or thing dilak or attempting to do so shall be guilty of an offence.
Francais 31 Search and seizure without a warrant 45. If an officer authorized in any of the circumstances referred to in section 44 has reasonable cause to believe that by reason of the delay in obtaining a search warrant under section of that investigation will be affected or evidence of the Commission of an offence is likely been tampered with, removed, defaced or destroyed, the officer can get into the premises and perform in, on and in respect of premises that all the powers referred to in section 44 in a way that fully and adequately as if he authorised to do so by a warrant issued under that section.
Examination of a woman's 46. There are no women may be inspected under section 44 or 45 except by another woman.
access to computerized data 47. Someone authorized officers carrying out the search under section 44 or 45 shall be given access to computerised data, whether stored in a computer or otherwise.
list of things seized 48. (1) except as provided in subsection (), where any books, accounts, documents, computerized data, marks, signs, cards, letters, pamphlets, device or thing seized under section 44 or 45, the seizing officer must provide a list the things seized and forthwith deliver a copy of that list signed by him to the occupier of the premises searched, or ask your agent or pekhidmatnya, the premises.
() if the premises were unoccupied, officials who seize it shall, whenever possible, affix list of things seized it significantly the premises.
3 laws of Malaysia Act 590 power to require the attendance of the person who knew about the case of 49. (1) an authorized officer making an investigation under this Act may by order in writing require the attendance before it of people who in the opinion of the authorized officers knew about the circumstances of the case, and such person shall attend when so required.
() if that person is not present as required, the authorized officers can report the absence to a magistrate who shall issue a warrant to secure the attendance of such person.
Examination of person case 50. (1) an authorized officer making an investigation under this Act may examine orally any person is expected to know the facts and circumstances of the case.
() the person was legally bound to answer all questions relating to the case submitted to it by the authorized officers, but that person may refuse to answer any question that the answer is likely to expose him to a criminal charge or penalty or forfeiture.
(3) a person who makes a statement under this section shall be legally bound to state the truth, whether or not the statement was made in whole or in part as an answer to questions.
(4) authorized officers that obtain information from someone shall first inform that person of the provisions of subsection () and (3).
(5) a statement made by a person under this section shall, as far as possible, reduced to writing and signed by the person who made it or marked with cap head jarinya after the statement was read out to him in a language he made it and after she was given the opportunity to make any corrections he wanted.
An additional 51 33 franchise power. An officer authorized shall, for the purposes of implementing this Act, has the power to do all or any of the following: (a) require the production of records, computerized data, accounts and documents kept by the franchisor, franchise broker or franchisee and check, inspect and copy any records, accounts, computerised data and the document;
(b) require the production of any document identification of any person in relation to any case or of an offence under this Act;
(c) make such investigations as are necessary to determine whether the provisions of this Act are complied with.
Prosecution 52. No prosecution shall be instituted under this Act without the written consent of the public prosecutor.
Part Viii Miscellaneous Franchise Sales to non-citizens subject to the approval of the Registrar 53. Franchisor which intends to sell a franchise to someone who is not a citizen of malaysia shall obtain the approval of, and subject to such conditions as may be imposed by the Registrar.
Franchise sales by foreigners in Malaysia 54. (1) foreigners who plan to sell francaisnya in malaysia or to any Malaysian citizen shall submit an application to the Registrar.
34 the laws of Malaysia Act 590 () the Registrar may approve or reject an application under subsection (1) without giving the reasons for such rejection.
(3) an application approved under this section may be made subject to such conditions as may be imposed by the Registrar.
Registration of foreign franchisor franchisee 55. (1) Notwithstanding section 6, one franchisee foreign franchisor shall register francaisnya with the Registrar by using the prescribed application form.
() The Registrar may impose conditions on the registration of franchise-holder referred to in subsection (1).
Inspection of documents disclosure 56. The Registrar may allow public inspection any disclosure documents filed to the Registrar unless, in its opinion, the examination could be prejudicial to the franchisor or franchisee or any person involved in the franchise business relating to the examination or inspection is not necessary or appropriate in the public interest.
57 ads. (1) any person who intends to publish, distribute or use any ads offering to sell or buy a franchise under this Act shall file with the Registrar a copy of the original ad is at least five days prior to the publication, distribution or use of the first such advertisement or any shorter period approved by the Registrar, or unless the advertisement has been excluded by the Registrar of this section.
() The Registrar may, by order, prohibit the use of any ads that are deemed to be false, fraudulent, misleading or deceptive.
Francais 35 (3) a person who fails to comply with subsection (1) shall be guilty of an offence.
power to exclude 58. the Minister may, by order published in the Gazette, exempt, subject to such conditions as he thinks fit to impose, any person or class of persons or business or industry from all or any provisions of this Act.
Protection officer 59. no action or prosecution can be brought, instituted or maintained in any court against —

(a) the Registrar, Deputy Registrar, Assistant Registrar or any officer or person duly authorised under this Act for or for or in respect of any act directed or performed for the purpose of implementing this Act; and (b) any other person or due to or in respect of any act done or said to be performed by him under orders, directions or instructions of the Minister, the Registrar, Deputy Registrar, Assistant Registrar, or any officer or person duly authorised under this Act if the Act made in good faith and with reasonable believing that the Act necessary for the purposes to be achieved thereby.
Regulations 60. (1) the Minister may make regulations for all or any of the following purposes: (a) prescribing the forms, procedures and other requirements for the purposes of this Act;
(b) the tapkan ben tuk and find all the contents of the disclosure document;
36 laws of Malaysia Act 590 (c) prescribing the fees or costs payable to the Registrar with respect to the registration of franchises and how to collect and pay the fees or costs;
(d) establish a procedure of appeal under this Act;
(e) prescribing the procedure and the requirements for the registration of any franchise granted or sold in or outside malaysia by the franchisor or franchise brokers before this Act comes into operation;
(f) prescribing the remuneration for Services Advisory Board Franchise; and (g) provide for any other matters proposed by, or necessary to carry out the full, the provisions of this Act and for the Administration accordingly.
() The regulations made under subsection (1) may prescribe any act in violation of the regulations as an offence and may prescribe a penalty to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding five years or both.
savings and transitional 61. Franchisor or franchise brokers who have given or sold in or outside malaysia franchise to franchise-holder before this Act comes into force shall, not later than twelve months from the commencement of the francaisnya, register with the Registrar in accordance with the procedures and requirements prescribed under this Act.
Francais 37 laws of Malaysia Act 590 franchise Act 1998 List Amendment law short title force amend from — No — 38 laws of Malaysia Act 590 laws of Malaysia Act 590 franchise Act 1998 List Section amended Section power amend with effect from – there are –