In Malaysia, franchises are governed by the Franchise Act of 1998. According to the Franchise Act, a franchise business involves an agreement between parties which involves a franchisee’s being granted a permit by the franchisor. This permit allows the franchisee to conduct business activities in a manner which may be determined by the franchisor. According to Malaysian franchise laws, registration is to be done with the Registrar of Franchises before the franchise business begins its operations.