Franchising Agreement

Legal Firm in Penang, Malaysia Specialised In Franchising Agreements & Intellectual Properties

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Grow Your Already Successful Business Using Lower Cost & Lower Risk

Every owner of a successful business, often comes to a point where they need to decide whether to invest more capital and grow or continue to stay small. In most cases, business owners tend to opt for the latter, due to the inherent risk and the investment capital required to grow.

Licensing and franchising are two ways for business owners to be able to grow rapidly with a much lower cost and lower risk.


“But… What’s The Difference Between Licensing & Franchising?”


Not only limited to operating system, distribution systems, marketing campaigns, operation model from franchisor and also include other IPs, in short, a manual to success. In return, the franchisee pays an upfront fee, royalties and sometimes a monthly or annual fee. Normally, franchising requires more setup and upfront investment compared to a pure licensing deal.


A contract giving permission to another party to use its intellectual properties, for example: patents, trademarks, copyrights, industrial designs.
In return, receiving parties will pay the licensor one off fee or royalties, or a combination of both as consideration.

Get Your Franchising Agreement Right From The Start


There are other differences when drafting a franchising agreement versus a licensing agreement. Some of the key terms and conditions that are considered in the area of setting up, control, support, exclusivity and competition can be very different. Get legal advice to clear your doubts and prevent time consuming mistakes when drafting a franchising agreement.

Focus On Your Outlets’ Setup & Opening – Leave Legal Matters To Us

When both parties are preparing documentations to register the franchise in Malaysia, you would need to take into account the specific requirements of the Franchise Act. While you are busy getting ready for the outlets’ setup opening and the trainings for new staff, you do not want to be caught by surprise with legal stuff and technical issues pertaining to your franchising agreement and registration.

All these could be easily resolved by engaging an experienced lawyer! At Chung Chambers, we provide extensive support, professional consultation and appropriate legal advice to both franchisor and franchisee.

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