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Franchise Owned Company Operated Agreement Template for Malaysia

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Key Requirements PROMPT example:

Franchise Owned Company Operated Agreement

"I need a Franchise Owned Company Operated Agreement for my international bubble tea chain expanding into Malaysia, with special provisions for halal certification and local sourcing requirements, planned to commence operations in March 2025."

Document background
The Franchise Owned Company Operated Agreement (FOCO) is a specialized franchise arrangement used in Malaysia when a franchise owner grants rights to an operating company to run the franchised business. This document is essential for compliance with the Malaysian Franchise Act 1998 and related regulations. It differs from traditional franchise agreements in that the operator is typically a company specifically set up to operate the franchise, rather than an individual franchisee. The agreement includes comprehensive provisions for business operations, brand standards, financial terms, and quality control measures. It's particularly relevant for businesses expanding their franchise operations in Malaysia and needs to address specific local legal requirements, including registration with the Franchise Registry Development Division (MDTF) under the Ministry of Domestic Trade and Consumer Affairs.
Suggested Sections

1. Parties: Identification of the franchisor and franchisee, including full legal names and registration details

2. Background: Context of the agreement, brief description of the franchise business, and purpose of the arrangement

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

4. Grant of Franchise: Scope of franchise rights, territory, and exclusivity provisions

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

6. Franchise Fees and Payments: Initial fees, royalties, marketing contributions, and payment terms

7. Obligations of Franchisor: Training, support, marketing, and other services provided by the franchisor

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

9. Intellectual Property Rights: Use of trademarks, trade secrets, and other intellectual property

10. Quality Control: Standards, inspections, and compliance requirements

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition: Restrictions during and after the agreement term

13. Termination: Grounds for termination and procedures

14. Post-Termination Obligations: Rights and obligations after agreement ends

15. Governing Law and Dispute Resolution: Applicable law and dispute resolution mechanisms

Optional Sections

1. Insurance Requirements: Detailed insurance obligations when specific coverage types are required

2. Environmental Compliance: Environmental standards and obligations for environmentally sensitive operations

3. Halal Certification: Requirements for maintaining Halal certification if applicable to the business

4. Data Protection: Specific provisions for handling personal data when significant data processing is involved

5. Force Majeure: Provisions for unforeseen circumstances affecting performance

6. Assignment and Transfer: Rules for transferring franchise rights when applicable

7. Import/Export Requirements: Specific provisions for international trade if applicable

Suggested Schedules

1. Schedule 1 - Business System: Detailed description of the franchise system and operating procedures

2. Schedule 2 - Marks and Intellectual Property: List and images of trademarks, copyrights, and other IP

3. Schedule 3 - Initial Setup Requirements: Specifications for premises, equipment, and initial inventory

4. Schedule 4 - Training Program: Details of initial and ongoing training requirements

5. Schedule 5 - Fee Structure: Detailed breakdown of all fees, royalties, and payment terms

6. Schedule 6 - Territory Map: Detailed description and/or map of the franchise territory

7. Schedule 7 - Operating Manual Table of Contents: Overview of the operating manual contents

8. Schedule 8 - Performance Targets: Specific performance metrics and targets

9. Appendix A - Compliance Checklist: Regulatory compliance requirements under Malaysian law

10. Appendix B - Required Forms: Standard forms and documents used in the franchise operation

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








































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Relevant Industries

Food & Beverage

Retail

Education & Training

Healthcare & Wellness

Automotive

Fashion & Accessories

Professional Services

Hospitality

Beauty & Personal Care

Technology & Electronics

Relevant Teams

Legal

Operations

Commercial

Finance

Compliance

Business Development

Brand Management

Quality Assurance

Regional Management

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Franchise Development Manager

Legal Counsel

Operations Director

Commercial Director

Business Development Manager

Compliance Officer

Brand Manager

Finance Director

Regional Manager

Quality Assurance 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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