Description of Invention
In Malaysia, the franchise activities are governed by the Franchise Act 1998. Some may start to argue that franchisees’ interests are oppressed by the franchisors by inserting the unfair terms in the franchise agreement. The Malaysian Franchise Act 1998 is also silent about the unfair terms in franchise agreements. Thus, this research investigates the legal issues of unfair contract terms in franchise agreements in Malaysia and proposes a few suggestions to overcome the issue of unfairness arising from the unfair contract terms imposed by the franchisors on franchisees with an Islamic perspective. It is suggested that an amendment should be made to the existing Franchise Act to attain the balance of the rights between franchisors and franchisees in Malaysia from the Islamic perspective.