The Pros And Cons Of Franchise

Franchising has become one of most popular ways of doing business in today’s marketplace including fast food business, health & fitness, financial services and etc. What is franchise? Franchise means a right that granted to an individual or group to market a company’s goods or services within a certain region or location such as McDonald’s, Domino’s Pizza, PappaRich, and many more. Other than that, franchising also can be define as a long-term cooperative relationship between two entities which are the franchisor and the franchisee that is based on an agreement whereby the franchisor provides a licensed privilege to the franchisee to running the business. In addition, the franchisor grants the franchisee the right to use an expansion concept including the franchise trademarks and brand names, production, service and marketing procedures and the entire business operation model, for a fee. Meanwhile, the franchisee provides the time, the capital, and the desire to exploit the brand and services provided by the franchisor to build a successful business.

Furthermore, franchise means a privilege or right that officially granted to offer the specific products or services under explicit course of action at a certain location for a certain period of time. In addition, franchise agreements means the legal documents between franchisor and the franchisee that governs the relationship between the two parties for a specified period of a time as well as it frames the relationship in a concise manner. Moreover, a franchisee is a person or an individual or an entity to whom the right to conduct a business is granted by the franchisor or licensor, while a franchisor is the company that owning or controlling the rights to grants franchises to pote...

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...g in Malaysia and globally. The MFA offers the courses of fundamental of franchise business course, business plan preparation for would be franchisee, franchise development course for franchise consultants, Franchise Act seminar and essential franchise training program fro would be franchise. Besides, the Malaysian Government also provides direct assistance to franchise business through the “Program for Franchise Development” and then, Permodalan Nasional Berhad will further the offers to aspiring Bumiputra franchisors with various development schemes and financing.

Hence, the Franchise Act purports to extensively and continuously regulate and supervise the area of franchising in Malaysia. Other than that, the commencement of the Franchise Act engendered legal ramifications to existing and potential franchises as well as other contractual business relationship.