Von Shevithra Selva Mohan
In der Franchise-Branche, Ein Fehltritt kann zu großen Problemen führen, vor allem, wenn es darum geht, gegen das Franchise zu verstoßen. Beispielsweise, der Fall von SP MULTITECH INTELLIGENT HOMES SDN BHD gegen HOME SDN BHD, die einen rechtswidrigen Franchisevertrag beinhalten. Als das Gericht entschied, dass es gegen das Gesetz verstößt, ein Unternehmen in Malaysia nicht als Franchiseunternehmen zu registrieren, Die Entscheidung löste bei den Beteiligten Schockwellen aus. Diese Entscheidung offenbarte nicht nur einen schwerwiegenden Verstoß gegen das Franchise-Gesetz, aber es bedeutete auch, dass die unrechtmäßige Partei mit erheblichen rechtlichen Konsequenzen rechnen musste.
Let’s explore how a small mistake ended up causing significant legal liabilities and what it means for franchisors and franchisees in Malaysia.
A Sneak Peek at What’s Inside This Article
In diesem Fall, the Franchisee was managing operations for a retail home concept chain store franchise. Hingegen, upon signing the Franchise Agreement with the Franchisor on October 15, 2001, it was revealed that the business had failed to register the franchise, violating Abschnitt 6(1) des Franchisegesetzes 1998, which mandates the Franchisor to register the franchise with the Registry of Franchise (ROF). It is interesting to take note, that it took approximately five (5) months for the Franchise Registration application to gain official approval, which was finally granted on March 22, 2002.
Gleichzeitig, the Franchisee raised a significant concern, claiming that the Franchisor had failed to provide crucial disclosure documents within the required 10-day period before the Franchisee signed the Franchise Agreement—an essential requirement specified in Abschnitt 15(1) des Franchisegesetzes 1998.
Als Ergebnis, the Franchisee pursued a declaration that the Franchise Agreement was inherently unlawful and null from the outset, also seeking compensation in the form of a refund aiming to recover all payments and benefits given to the Franchisor.
How Things Turned Out Legally?
The court decided the Franchise Agreement signed between the parties was void, attributing this to the Franchisor’s breach of the Act’s provisions. This conclusion aligned with Abschnitt 2(g) of the Contract Act 1950, where any agreement lacking legal enforceability stands declared as void.
In reaching the decision, the court emphasized that the intention of the parties at the time of entering into the Franchise Agreement, as well as subsequent actions of the parties, were crucial in determining the legality of the agreement.
In the ultimate ruling, it was revealed that the franchise received approval only on 22.3.2002, whereas the agreement was dated 15.1.2001. Infolgedessen, the Franchisor’s failure to adhere to the Franchise Act 1998 by not registering the franchise before offering it for sale rendered the agreement unenforceable by law. Daher, the agreement was deemed void, and the court mandated the refund of all payments made and benefits provided to the Franchisor back to the Franchisee.
What it All Adds Up To!
Einwickeln, in Malaysia, prior to selling or even offering a franchise for sale, it is imperative for the Franchisor to register their franchise. This essential step demands complete and transparent disclosure about the franchise, aligning with the main requirement for registration..
Neglecting this legal obligation can place a Franchisor in legal jeopardy, constituting a violation under the Act. In the case of a company, the repercussions for not adhering to these regulations are significant, as the Franchisor could face penalties of up to RM250,000 for the first offence and RM500,000 for subsequent violation.
Deshalb, the crucial lesson to glean from this is that the Franchisor’s failure to register the franchise yields severe repercussions, unmistakably leading to the nullification of the Franchise Agreement due to its unlawful status.
Also, in the End!
This case is a clear indication for Franchisors about the importance of complying with regulatory frameworks. It stresses meticulous adherence to registration protocols, highlighting that non-compliance could void the Franchise Agreement and result in significant penalties. This underscores the vital importance of ensuring legality and conformity in Franchise Agreement.
Should you require guidance or assistance with franchising inquiries in Malaysia, Indonesien, or other Southeast Asian countries, KASS stands prepared to offer its expertise and support.
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