The CEW is the most specific and relevant law. The contractual relationship between the parties would also be governed by the contractual terms of the franchise agreement and, therefore, the provisions of the Contracts Act 1950 would be relevant. A Malaysian franchisee also has the right to request an extension of the deductible period by providing a written notification to the franchisor at least 6 months before the expiry of the period (section 34, paragraph 1, of the FA 1998). In Noraimi bt aka Rangkaian Hotel Seri Malaysia  9 CLJ 815, the defendant (franchisor) entered into franchise and premise management agreements with the applicant (franchised) for the management of the Seri Malaysia hotel chain. Although the agreement provided for an extension of a new eight-year term, the defendant refused to renew it. The Tribunal found that the expiry of the franchise agreement was not grounds for refusal to renew. The defendant`s act was not valid because it violated the terms of the franchise agreement and the franchisee was compensated for the shortfall. First, we begin to define what a franchise is, a franchise is essentially an agreement between two or more people, where the franchisor grants the right, so that the franchisee is able to operate the business in accordance with the franchise system. The system is then defined by the franchisor for the life determined by the franchisor. This agreement remains active for a one-year signing period, unless one of the following points arises, in order to avoid doubts, that each duration of the deductible may not be less than five (5) years, as defined in Section 25 of the FA 1998. The owner also agrees to pay these business licenses up to [dollars.amount] on a monthly basis, as agreed by both parties. If royalties and/or royalties are not paid within an agreed time frame, this may lead to the termination, seizure or withdrawal of the owner`s franchise licence.
(a) the franchisor grants the franchisee the right to operate a business under the franchise system, as determined by the franchisor for a period to be determined by the franchisor; A franchise broker is essentially an agent or representative of a franchisor who sells a franchise to a person for a certain consideration. A franchise broker may be either a business or an individual, but it does not include a director, employee or franchisor officer. Although there is no express provision in the FA or any other statute regarding the nature or amount of royalties, there is a general provision in the CEW that provides that a franchisor and a franchisee avoid the following behaviour: A franchisee is in fact a person who has been granted, the franchisee will include a franchisee in relation to the relationship he has with the franchisor and the under-franchised and the relationship he has with the franchiser.