Franchise (Forms and Fees) Regulations 1999 [P.U. (A) 422/1999] provides information on franchise business regulations in Malaysia, including registration forms, procedures, fees, and reporting requirements.
It also includes details on franchise outlets, employees, contracts, and annual sales. Additionally, it outlines the registration process for franchise brokers.
In Malaysia, the reporting requirements for annual franchise business activities are governed by the Franchise Act 1998 and the Franchise (Forms and Fees) Regulations 1999.
Franchise businesses are required to submit an annual report to the Registrar of Franchises within 30 days after the registration anniversary of the franchise.
The annual report must be submitted using Form 1, as specified in the First Schedule of the Franchise (Forms and Fees) Regulations 1999.
This form is known as the Franchise Business Annual Report and includes various details about the franchise's operations in Malaysia.
The information required in the Franchise Business Annual Report includes:
The total value of annual sales for all franchise outlets operating in Malaysia.
The total number of operating franchise outlets in the financial year for the franchisor and all types of franchisees doing business overseas.
The registered address of the company or business.
The Malaysian Franchise Association Membership number, if applicable.
The company's capital, if applicable.
Additionally, if there are any changes to the franchise business, the latest supporting documents must be attached to the report.
The report must also include the name of the officer responsible for preparing the report and their signature.
It is important to note that any document required to be attached to the prescribed form must be verified by a statutory declaration declaring that the copy has been compared with the original document and that it is a true copy of the original document.
Failure to comply with these reporting requirements may result in penalties as stipulated by the Franchise Act 1998 and its regulations.
Therefore, it is crucial for franchise businesses in Malaysia to adhere to these annual reporting obligations to maintain their franchise registration status and avoid legal repercussions.