Document background
The Franchise Development Agreement is a crucial document used when a franchisor wishes to expand their franchise network in Malaysia through a developer who will establish multiple franchise units. This agreement must comply with Malaysian law, particularly the Franchise Act 1998 and its associated regulations, which require specific disclosures and registrations with the Registrar of Franchises. The document outlines the developer's territorial rights, development schedule, financial obligations, and operational requirements, while protecting the franchisor's intellectual property and brand standards. It's particularly important in the Malaysian context due to local regulatory requirements, including potential Bumiputera ownership considerations and Halal certification requirements where applicable. The agreement serves as the master document governing the relationship between the franchisor and developer, with individual unit franchise agreements being executed separately for each developed location.
