Franchisor Should Seek Legal Counsel To Avoid Complaints

Nov. 1, 2011 - PRLog -- Franchise is one of the most popular fund raising and business models in Malaysia. It allows franchisors to quickly raise fund and expand the influence of its brand, and at the same time, allows entrepreneurs to minimise business risks and efficiently open new businesses and potentially generate substantial profits based on proven business model, method, trademarks and infrastructures.

However, before a business model is eligible for franchise license, the owner of the franchise is required to operate a potential franchise brand by way of licensing. During the pre- franchise stage, the Licensor is refrained from making representation that it is operating a franchise business. In a licensing arrangement, both parties are bound by a sometimes-intricate set of obligations to one another.

When a party fails to meet those obligations, disputes inevitably arise between licensor and licensee. Due to the complexity of laws relating to licensing and franchise businesses, Kuala Lumpur business lawyer and franchise attorney, Mr. Leon Lu suggests contacting an experienced franchise attorney in these cases.

“There are a mass of laws, regulations and contract arrangements that are unique to pre- franchise situations,” Leon said. “We encourage you to contact a Malaysia Law Firm which is experienced and well-informed in handling pre- franchise arrangements. License agreement has be to drafted with caution to avoid possible compliant under Franchise Act.”

“A reliable business lawyer with franchise experience will review a client’s license or franchise agreement and any relevant facts related to the business model,” Leon said. “With the proper and accurate guidance, the  chance of receiving complaints will be minimised. A brand which has been recorded having been complained, will be blacklisted and therefore jeopardise its chance of obtaining franchise license is future.”

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For more information, please visit Malaysia Law Firm here: http://www.lylu.com.my/malaysia-boutique-law-firm