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 1st 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
section 4 of the Franchise Act 1998 ("the
Act"), that is to say, an agreement by which a
franchisor grants a franchisee the right to operate a business
according to a franchise system using the franchisor's
trademark and other intellectual property, for a fixed
