Kafe Choco Loco director, former director charged over unlicensed franchise deals

The director and former director of Kafe Choco Loco face legal action following allegations that they entered into franchise agreements with two companies without securing the required authorization from Malaysia's franchise registrar. The use of franchise terminology in contractual arrangements with the two recipient companies proceeded without official approval, according to the charges filed. Franchise operations in Malaysia are regulated under the Franchise Act, which requires businesses offering franchise opportunities to register with the relevant regulatory authority before executing franchise agreements. The case highlights ongoing enforcement efforts to ensure compliance with franchise regulations in the country. Both individuals are expected to appear before the courts to address the charges brought against them.