KUALA LUMPUR, June 26 (Bernama) -- The Bill to amend the Franchise Act 1998, which proposes a fine of up to RM250,000 to franchisors who fail to register their franchises with the Registrar, was tabled for first reading at the Dewan Rakyat on Tuesday.
The Bill was tabled by the Deputy Minister of Domestic Trade, Cooperatives and Consumerism, Datuk Rohani Abdul Karim.
Under the amendment, a franchisor must register his or her franchise with the Registrar before carrying out the franchise business or to offer to sell the franchise to anyone.
Any organisation that commits the offence can be fined not exceeding RM250,000 for the first offence and a fine of not more than RM500,000 for the second and subsequent offences.
For individuals committing the offence, they can be fined not more than RM100,000 or imprisoned not more than one year or both and for the second and subsequent offences the fine is not more than RM250,000 or imprisonment not exceeding three years or both.
The franchisor must also submit his annual report to the Registrar within six months of the end of their financial year and the Registrar is also empowered to revoke the registration of the franchisor who fails to submit their annual report for five consecutive years.