The Franchising and Licensing Association (Singapore), or FLA (Singapore), is a founding member of the World Franchise Council and has been championing the growth of Singapore’s franchising industry since its establishment in 1993.

As a key pillar in Singapore’s knowledge-based economy, FLA (Singapore) promotes franchising, licensing, and branding as strategic tools for business expansion—positioning Singapore as a leading regional hub for franchise and license development.

In collaboration with government agencies and global franchise organisations, FLA (Singapore) empowers its members with the resources and support needed to drive international growth.

Today, FLA (Singapore) represents a dynamic membership of over 130 companies and 200 brands. It is guided by a committed team of advisors, committee members, and staff—all working towards helping Singapore enterprises succeed on the global stage.

Name: Franchising and Licensing Association (Singapore)

Website: https://www.flasingapore.org/

Email: [email protected]

Address: 9 Jurong Town Hall Road, #03-16 Trade Association Hub, Singapore 609431

Mr Gan Shee Wen
President
[email protected]

Ms Tricia Tan
Executive Director
[email protected]

1. Franchise Agreement

A legally binding franchise agreement is essential in any jurisdiction. This agreement outlines the rights and obligations of both franchisors and franchisees. Key elements include:

2. Pre-Contractual Disclosure

In many countries, franchisors are required to provide a Franchise Disclosure Document (FDD) before signing any agreement. This document gives prospective franchisees insight into the franchisor's financial health, business history, legal disputes, and operational details. While countries like the U.S. and Australia mandate the FDD, others may only recommend it.

3. Intellectual Property Protection

Protecting intellectual property (IP), such as trademarks and business systems, is a critical aspect of franchising. Franchisors must ensure their IP is registered and safeguarded in each market to prevent unauthorised use. Franchise agreements must clearly define the rights of franchisees to use the franchisor's brand and operational systems.

4. Employment Laws

Franchisees must comply with local employment laws governing wages, work hours, and employee benefits. Franchisors often provide guidance on compliance to maintain brand reputation and operational consistency across all franchise locations.

5. Consumer Protection Laws

Most countries have stringent consumer protection laws that regulate how franchises conduct business. These laws ensure fair trade practices, prohibit misleading advertising, and protect the rights of consumers. Franchise agreements must adhere to these laws to avoid penalties.

6. Tax and Financial Regulations

Franchisors must familiarise themselves with the local tax structures, including corporate taxes, VAT/GST, and any specific regulations concerning franchising fees or royalties. Proper tax planning and legal advice are crucial for smooth operations.

7. Non-Compete Clauses

Franchisors may include non-compete clauses in the franchise agreement to prevent franchisees from operating competing businesses during and after the termination of the franchise. However, the enforceability of such clauses varies by country, with some jurisdictions placing limitations on their scope and duration.

8. Dispute Resolution

Many franchise agreements include clauses outlining the preferred method of dispute resolution, such as arbitration or mediation. Different countries offer various dispute resolution mechanisms, so franchisors and franchisees must be aware of local practices to handle conflicts effectively.