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Franchise Broker Agreement Template for Malaysia

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Key Requirements PROMPT example:

Franchise Broker Agreement

"I need a Franchise Broker Agreement for my Malaysian food and beverage business, with exclusive territory rights for Kuala Lumpur and Selangor, including specific performance targets and a tiered commission structure based on successful franchise placements."

Document background
The Franchise Broker Agreement is a crucial document used when a franchisor wishes to engage professional intermediaries to expand their franchise network in Malaysia. This agreement type is particularly important in the Malaysian market where franchise businesses must comply with specific regulatory requirements under the Franchise Act 1998 and related regulations. The document establishes the broker's authority to represent the franchisor, defines commission structures, and outlines compliance responsibilities. It includes essential provisions for protecting the franchisor's intellectual property and maintaining confidentiality during the franchisee recruitment process. The agreement is designed to facilitate franchise expansion while ensuring all parties operate within Malaysian legal frameworks and maintain professional standards.
Suggested Sections

1. Parties: Identification of the franchisor and the franchise broker, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, including the franchisor's business nature and desire to engage a broker to identify potential franchisees

3. Definitions: Key terms used throughout the agreement, including specific franchise-related terminology and Malaysian legal requirements

4. Appointment and Scope: Terms of the broker's appointment, territory coverage, and detailed scope of services

5. Broker's Rights and Obligations: Detailed responsibilities including lead generation, franchisee screening, and compliance with Malaysian franchise laws

6. Franchisor's Rights and Obligations: Franchisor's commitments, including providing necessary information, training, and support to the broker

7. Compensation Structure: Commission rates, payment terms, and conditions for earning commissions

8. Confidentiality: Protection of proprietary information and trade secrets

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Compliance with Laws: Specific provisions ensuring compliance with Malaysian Franchise Act and related regulations

11. Representations and Warranties: Statements of fact and promises by both parties

12. Indemnification: Mutual protection against losses and liability

13. Dispute Resolution: Process for handling disagreements, including jurisdiction under Malaysian law

14. General Provisions: Standard clauses including notices, assignment, and entire agreement

Optional Sections

1. Non-Competition: Restrictions on broker's ability to represent competing franchises, used when exclusivity is required

2. International Operations: Additional provisions for brokers operating across multiple countries, used for international franchise expansion

3. Sub-Brokers: Terms governing the appointment and management of sub-brokers, used when broker network expansion is permitted

4. Marketing Obligations: Specific marketing requirements and cost-sharing arrangements, used when broker has marketing responsibilities

5. Performance Targets: Minimum performance requirements and consequences, used when specific targets are crucial

6. Training Requirements: Detailed training obligations and certification requirements, used for complex franchise systems

7. Insurance Requirements: Specific insurance coverage requirements, used when risk management is crucial

Suggested Schedules

1. Schedule 1: Commission Structure: Detailed breakdown of commission rates, payment terms, and calculation methods

2. Schedule 2: Territory Definition: Specific geographical areas or markets covered by the broker's appointment

3. Schedule 3: Required Documentation: List of mandatory documents and forms required under Malaysian franchise laws

4. Schedule 4: Reporting Requirements: Templates and timing for regular reporting to the franchisor

5. Schedule 5: Standard Operating Procedures: Detailed procedures for lead generation, qualification, and franchisee introduction

6. Appendix A: Franchise Information Pack: Standard information to be provided to potential franchisees

7. Appendix B: Compliance Checklist: Checklist of regulatory requirements under Malaysian franchise laws

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























Clauses






























Relevant Industries

Retail

Food & Beverage

Education

Healthcare

Automotive

Professional Services

Hospitality

Beauty & Wellness

Technology

Real Estate

Relevant Teams

Legal

Franchise Development

Business Development

Operations

Compliance

Executive Leadership

Finance

Commercial

Relevant Roles

Franchise Development Manager

Business Development Director

Legal Counsel

Franchise Operations Manager

Commercial Director

Compliance Officer

Chief Executive Officer

Franchise Broker

Business Development Manager

Regional Development Manager

Franchise Sales Director

Legal Director

Chief Operating Officer

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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