Licensing

Difference between Licensing and Franchising in Malaysia

Home > Expertise > Licensing > Licensing vs Franchising

Difference between Licensing and Franchising in Malaysia

Unlike other jurisdiction where granting a license is more or less the same as granting a franchise. However, in Malaysia, these are govern under two different statutory instruments. Franchise in Malaysia has a higher and stringent requirements, and Franchisor must able to fulfill these requirements in order to be able to grant or sell a Franchise. The table below summarizes the key differences


LICENSING FRANCHISING
Regulated by Contracts Act 1950 Regulated by Franchise 1998
Goodwill basis IP must be registered
No financial requirement Need to produce 3 profitable fiscal year
Better Flexibility with Licensees Must be Consistent with all Franchisees
No disclosure requirement Maximum Disclosure
Agreement need only be stamped Franchise must be registered
Unable to restrain Licensee from future independent trade upon termination Restrain Franchisee from future independent trade for 2 years upon termination

Difference between Licensing and Franchising in Malaysia

Unlike other jurisdiction where granting a license is more or less the same as granting a franchise. However, in Malaysia, these are govern under two different statutory instruments. Franchise in Malaysia has a higher and stringent requirements, and Franchisor must able to fulfill these requirements in order to be able to grant or sell a Franchise.

  • Regulated by Contracts Act 1950
  • Goodwill basis
  • No financial requirement
  • Better Flexibility with Licensees
  • No disclosure requirement
  • Agreement need only be stamped
  • Unable to restrain Licensee from future independent trade upon termination
  • Regulated by Franchise 1998
  • IP must be registered
  • Need to produce 3 profitable fiscal year
  • Must be Consistent with all Franchisees
  • Maximum Disclosure
  • Franchise must be registered
  • Restrain Franchisee from future independent trade for 2 years upon termination

Call us NOW for FREE CONSULTATION

Intellectual Property Express Link:-

Intellectual Property Express Link:-

OUR CONSULTANTS

Kuala Lumpur / Selangor

Johor Bahru

OFFICE NO

+603-5891 4846

OUR CONSULTANTS

Kuala Lumpur / Selangor

Johor Bahru

OFFICE NO

+603-5891 4846

CONTACT US

OUR CONSULTANTS

Kuala Lumpur / Selangor

SEND US A MESSAGE