Overview of the Regulatory Framework for the Franchise Industry in Malaysia
Franchising has emerged as a significant trend in Malaysia, offering attractive opportunities for local and foreign investors to expand their businesses as well as allowing entrepreneurs to operate under an established brand, significantly reducing the risks associated with starting a new business from scratch.
The franchise industry in Malaysia is governed by the Ministry of Domestic Trade and Cost of Living (the “Ministry”) with a strong support of the Malaysian Franchise Association. Unlike licensing where focuses are more on intellectual property solely than the complete business model, franchising in Malaysia is largely and strictly regulated, especially by the Franchise Act 1998 (the “Act”).
