In
Dr H K Fong Brainbuilder Pte Ltd v SG-Maths Sdn
Bhd & Ors [2021] 1 CLJ 155, the Malaysian Court
of Appeal affirmed that an unregistered franchise agreement is void
for illegality. This case stressed that franchise registration
requirements apply to the peril of foreign and local franchisors
alike.
The nixed franchise concerned a
Brainbuilder
mathematics teaching business which the Singaporean Plaintiff /
Appellant had granted the 1
st Defendant / Respondent the
right to operate and manage in Malaysia under a Master
Licensing Agreement . Notwithstanding its innocuous name, both
the High Court and Court of Appeal found the Master Licensing
Agreement to fall within the definition of a franchise under