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Restaurant Franchise Agreement Template for Malaysia

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Key Requirements PROMPT example:

Restaurant Franchise Agreement

"I need a Restaurant Franchise Agreement for my traditional Malaysian restaurant chain expanding through franchising, with specific provisions for halal certification requirements and local sourcing of ingredients, planning to open our first franchise location in March 2025."

Document background
The Restaurant Franchise Agreement serves as the foundational legal document for establishing and operating a franchised restaurant location in Malaysia. This agreement is essential when a restaurant brand owner (franchisor) wishes to expand their business through franchising, granting rights to independent operators (franchisees) to use their brand, systems, and intellectual property. The document must comply with the Malaysian Franchise Act 1998 and related regulations, requiring registration with the Malaysian Franchise Registry. It covers crucial aspects such as territory rights, operational standards, training requirements, quality control, financial obligations, and brand protection measures. This agreement is particularly important in the Malaysian market, where franchise businesses must adhere to specific local requirements, including potential Halal certification, local food safety standards, and cultural considerations.
Suggested Sections

1. Parties: Identification of franchisor and franchisee, including full legal names and registration details

2. Background: Context of the agreement, description of the franchise system, and business concept

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Grant of Franchise: Scope of franchise rights, territory, and exclusivity provisions

5. Term and Renewal: Duration of agreement and conditions for renewal

6. Franchise Fees: Initial franchise fee, ongoing royalties, and other financial obligations

7. Training and Support: Franchisor's obligations regarding initial and ongoing training

8. Operations Standards: Required operational procedures and quality standards

9. Intellectual Property: Use of trademarks, trade secrets, and proprietary information

10. Marketing and Advertising: Marketing obligations and advertising fund contributions

11. Supply and Equipment: Requirements for suppliers, equipment, and inventory

12. Records and Reporting: Financial reporting requirements and record-keeping obligations

13. Inspection and Audit: Franchisor's rights to inspect and audit the franchise

14. Transfer and Assignment: Conditions for transfer of franchise rights

15. Termination: Grounds for termination and termination procedures

16. Post-Termination: Obligations after termination including non-compete and confidentiality

17. Governing Law: Application of Malaysian law and jurisdiction

18. General Provisions: Standard contractual provisions including notices, amendments, and severability

Optional Sections

1. Development Rights: Used when granting rights to develop multiple outlets in a territory

2. E-Commerce Rights: Include when the franchise involves online ordering or delivery services

3. Halal Certification: Required for franchises maintaining Halal certification

4. International Operations: Include for franchises with international expansion potential

5. Sub-Franchising Rights: Used when allowing franchisee to grant sub-franchises

6. Ghost Kitchen Operations: Include for delivery-only or virtual kitchen operations

Suggested Schedules

1. Schedule 1: Business System: Detailed description of the franchise system and business concept

2. Schedule 2: Licensed Marks: List and images of all trademarks and service marks

3. Schedule 3: Territory: Detailed description and/or maps of the franchised territory

4. Schedule 4: Initial Fee and Royalties: Detailed breakdown of all financial obligations

5. Schedule 5: Operations Manual Table of Contents: Overview of the operations manual contents

6. Schedule 6: Required Equipment and Supplies: Specifications for all required equipment and supplies

7. Schedule 7: Initial Training Program: Details of the initial training program

8. Schedule 8: Approved Suppliers: List of approved suppliers and products

9. Schedule 9: Standard Restaurant Layout: Specifications for restaurant design and layout

10. Schedule 10: Menu Items: Approved menu items and pricing guidelines

11. Appendix A: Form of Confidentiality Agreement: Standard confidentiality agreement for employees

12. Appendix B: Personal Guarantee: Form of personal guarantee if required

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

Food & Beverage

Hospitality

Retail

Quick Service Restaurants

Casual Dining

Fine Dining

Cloud Kitchens

Food Delivery Services

Catering Services

Restaurant Equipment & Supply

Relevant Teams

Legal

Operations

Franchise Development

Business Development

Compliance

Quality Assurance

Training

Finance

Property Management

Brand Management

Supply Chain

Marketing

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Franchise Development Director

Operations Director

Legal Counsel

Franchise Manager

Business Development Manager

Restaurant Operations Manager

Compliance Officer

Brand Manager

Quality Assurance Manager

Training Manager

Finance Director

Property Manager

Restaurant Owner

Area Development Manager

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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