World · Malaysia Bureau
Dessert Cafe Directors Face Charges Over Unregistered Franchise Deals
A current and former director of Choco Loco have been charged for allegedly entering into franchise agreements without obtaining the required regulatory approval. The pair are accused of using franchise terminology in contracts with two franchisees in violation of franchise registration requirements.
LSN Malaysia ·
The director and former director of the dessert cafe chain face legal proceedings over their handling of franchise arrangements, authorities confirmed. Investigators allege that the two individuals concluded franchise agreements with franchisees using the term 'franchise' without securing proper registration clearance from the relevant regulatory body.
The charges relate to agreements entered into with two separate franchisees, according to legal filings. Under Malaysian franchise law, operators must register franchise arrangements and comply with disclosure requirements before offering franchise opportunities to third parties.
The case highlights ongoing regulatory scrutiny of franchise operations in the country. Enforcement agencies have intensified monitoring of franchise sectors to ensure compliance with registration and disclosure obligations designed to protect franchisees and maintain market integrity.
Choco Loco operates as a dessert cafe concept with multiple locations. The matter is ongoing, with authorities continuing their investigation into the circumstances surrounding the franchise agreements in question.