An alternative to starting your own business from scratch is franchising. Franchising is not a "form" of business, but is a method or system where companies (franchisees) are granted the right to operate a business according to a special contract with a parent organization (franchisors). The franchise system is incorporated under the Franchise Act 1998.
Franchise System
A Franchise System refers to a contract signed between two or more parties in which the franchisor gives the right to the franchisee including the master franchisee to operate business that is similar to the one initially started by him. To run a business base on the franchise system you have to register with the Registrar of Franchise, Ministry of Entrepreneur and Co-operative Development, MalaysiaRegistration
Procedures
REGISTRATION OF FRANCHISOR/MASTER FRANCHISEE/FRANCHISEE/FOREIGN FRANCHISOR
1. Every application shall be accompanied with a copy of the following
documents:
a) Complete disclosure document
(Borang BAF1)
b) Application for registration form
(Borang BAF2)
c)
Franchise Agreement
d) Operations manual
e) Training manual
f) Certificate of Incorporation, (Form
8 or 9)
g) form 24 or 49
h) Annual financial statements for
companies with share capital (under section 165 of the Companies Act 1965)
j) Company's business brochure
2. The copy of each document submitted with the application form must be verified the certified true copy of the original.
3. Application Form (Form BAF 2) and a Sample of the Complete Disclosure
Document (Form BAF 1) can be obtained free of charge at the Ministry of
Entrepreneur and Co-operative Development.
Registration of Franchise Broker
a)
Company
b) Individual
a) Company Qualification:
1.
Registered under the Company Act 1965
2. Key personnel must have minimum
qualification as required for individual registration
