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Non Exclusive Franchise Agreement Template for Malaysia

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Key Requirements PROMPT example:

Non Exclusive Franchise Agreement

"I need a Non-Exclusive Franchise Agreement for my Malaysian bubble tea business, allowing franchisees to operate in multiple territories across Kuala Lumpur and Selangor, with specific provisions for halal certification requirements and local sourcing of ingredients."

Document background
The Non-Exclusive Franchise Agreement is essential for businesses expanding through franchising in Malaysia while retaining the right to appoint multiple franchisees in the same territory. This document is used when a franchisor wishes to grant franchise rights while maintaining flexibility in network expansion. The agreement must comply with Malaysia's Franchise Act 1998 and related regulations, including mandatory registration with the Franchise Registry. It contains comprehensive provisions covering operational standards, brand protection, quality control, and financial obligations. The non-exclusive nature particularly suits businesses seeking rapid expansion in competitive markets or testing new territories. This agreement type is commonly used in retail, food and beverage, and service industries where multiple franchise locations can coexist in the same area.
Suggested Sections

1. Parties: Identification of franchisor and franchisee with complete legal details

2. Background: Description of the franchise business, brand history, and purpose of the agreement

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

4. Grant of Franchise: Terms of the non-exclusive franchise rights, territory, and permitted use of intellectual property

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

6. Franchise Fees and Payments: Initial franchise fee, ongoing royalties, advertising contributions, and payment terms

7. Franchisor Obligations: Support, training, operations manual, marketing assistance, and other franchisor duties

8. Franchisee Obligations: Operational standards, compliance requirements, reporting obligations, and performance targets

9. Intellectual Property Rights: Usage of trademarks, patents, copyright materials, and trade secrets

10. Training and Support: Initial and ongoing training requirements, technical support provisions

11. Marketing and Advertising: Marketing obligations, advertising fund contributions, local marketing requirements

12. Quality Control: Quality standards, inspection rights, and compliance requirements

13. Records and Reporting: Financial records, reporting requirements, and audit rights

14. Insurance and Indemnity: Required insurance coverage and mutual indemnification provisions

15. Transfer and Assignment: Conditions for transfer of franchise rights and change of ownership

16. Termination: Grounds for termination, notice requirements, and consequences of termination

17. Post-Termination Obligations: Obligations after agreement ends, including non-compete and confidentiality

18. Dispute Resolution: Process for handling disputes, jurisdiction, and governing law

19. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Multi-Unit Development: Used when franchisee has rights to develop multiple units within a territory

2. E-commerce Rights: Include when online sales channels are part of the franchise system

3. Equipment Leasing: Required if franchisor leases equipment to franchisee

4. Property Lease Requirements: Include when franchise requires specific property requirements or franchisor involvement in property selection

5. Supply Chain Obligations: Used when franchise requires purchase of supplies from designated suppliers

6. International Operations: Include for franchises operating across international borders

7. Halal Certification: Required for food and beverage franchises requiring Halal certification in Malaysia

8. Covid-19 or Force Majeure Provisions: Detailed provisions for handling pandemics or other force majeure events

Suggested Schedules

1. Schedule 1 - Franchise Territory: Detailed description and/or maps of the granted territory

2. Schedule 2 - Fees Schedule: Comprehensive breakdown of all fees, royalties, and payment terms

3. Schedule 3 - Trademark and Intellectual Property: List of all registered trademarks, patents, and intellectual property included in the franchise

4. Schedule 4 - Initial Training Program: Details of required initial training, duration, location, and content

5. Schedule 5 - Operations Manual Table of Contents: Overview of the operations manual content (full manual provided separately)

6. Schedule 6 - Equipment and Inventory Requirements: Detailed list of required equipment, initial inventory, and specifications

7. Schedule 7 - Design and Layout Specifications: Store design, layout requirements, and brand standards

8. Schedule 8 - Insurance Requirements: Detailed insurance coverage requirements and minimum limits

9. Appendix A - Franchise Disclosure Document: Required disclosure document under Malaysian Franchise Act

10. Appendix B - Financial Reporting Templates: Standard forms for financial reporting and recordkeeping

11. Appendix C - Confidentiality Agreement: Detailed confidentiality terms for employees and stakeholders

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 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 and Beverage

Retail

Education and Training

Healthcare Services

Automotive Services

Beauty and Wellness

Real Estate Services

Hospitality

Technology Services

Professional Services

Manufacturing

Entertainment and Recreation

Relevant Teams

Legal

Operations

Finance

Business Development

Compliance

Marketing

Brand Management

Training

Quality Assurance

Property Management

Supply Chain

Risk Management

Relevant Roles

Chief Executive Officer

Franchise Development Manager

Legal Counsel

Operations Director

Commercial Director

Business Development Manager

Compliance Officer

Brand Manager

Financial Controller

Training Manager

Property Manager

Quality Assurance Manager

Marketing Director

Supply Chain Manager

Regional 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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