Singapore’s government has continued to actively promote franchising as a strategic growth avenue across key industries, resulting in a flexible common-law framework and pro-business environment that is a sharp contrast when compared to the more prescriptive regulatory regimes commonly found in many other jurisdictions.

Key sectors currently driving Singapore's economy include manufacturing, which encompasses the production of electronics, chemicals, biomedical products, and precision engineering. The financial services sector is also a significant contributor, with Singapore being a global financial hub offering banking, insurance and asset management services, amongst other things. Trade and connectivity, tourism and hospitality, and information and communications technology (ICT) are also other vital sectors contributing to the Singapore economy.


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In Singapore, a 'franchise' is typically understood to be a written agreement between two or more persons whereby a franchisor authorises a franchisee to exercise the right to engage in and/or operate a business in Singapore utilising the franchisor’s system which has been developed and which is controlled by the franchisor. The franchisee’s business will typically be identified by the public as being substantially associated with a trade or service mark, logo, symbol or name, the use of which is controlled by the franchisor. The franchisor will typically also exert, or have the authority to exert, a significant degree of control over the method or manner of operation of the business carried on by the franchisee.

Legal considerations

Singapore does not have a single, comprehensive statute governing franchising or a franchising registration system. Instead, franchising relationships are primarily governed by general contract and commercial laws including, amongst others, the Unfair Contract Terms Act 1977, Competition Act 2004, Consumer Protection (Fair Trading) Act 2003 and the Trade Marks Act 1998. Together, these laws provide the legal framework for managing contractual obligations, market competition, consumer protection and brand integrity within franchise arrangements.

Whilst there is no specific legislation dedicated to franchising, there may be different laws and regulations which may be applicable to franchisees depending on the nature of the franchise in question. As an example, the Resource Sustainability Act 2019 imposes mandatory packaging reporting obligations on franchisors and franchisees with an annual turnover exceeding S$10 million if they fulfil specified requirements. 

Competition and antitrust

Singapore’s Competition Act 2004 prohibits price-fixing, resale price maintenance and market allocation schemes, and this rule would similarly apply to franchisees. In particular, franchise agreements should be structured to avoid incorporating provisions that fix downstream prices or limit territories beyond what is necessary to protect the brand.

Intellectual property

Intellectual property protection lies at the heart of any franchise system. In Singapore, prompt registration with the Intellectual Property Office of Singapore (IPOS) is recommended to protect brand integrity in the context of franchising.

Generally, it is advisable for a franchisor to register their trade marks before licensing them to the franchisee. Likewise, the franchisee should protect their licensing rights in the trade marks by checking that the trade marks granted to them are registered with IPOS.

Franchises will benefit from intellectual property protections in relation to trade secrets, copyright, patents, trade marks and design rights. Separately, the use, disclosure and protection of confidential information can be, and is typically safeguarded under contractual agreements.

FLA Code of Ethics

The Franchising and Licensing Association (Singapore) (FLA) provides a Code of Ethics (the code) which emphasises transparency, fair dealings, and proper disclosure. Whilst the code is only binding on members of the FLA, it is a useful framework for the offer and sale of franchises for non-members. There is no obligation or requirement in Singapore for franchises or franchise agreements to be registered with the FLA. 

Corporate structure

Franchisors and franchisees have the flexibility to operate as private limited companies, sole proprietorships, partnerships or limited liability partnerships. There is no requirement for franchisors or franchisees to be local entities or wholly owned by Singapore nationals.

The franchise agreement

Under Singapore law, franchise agreements must navigate a common-law framework without a dedicated franchising statute. 

Registration requirements

Franchise agreements do not need to be registered with local authorities and there are no statutory restrictions on franchise agreement term lengths or renewal periods, which are typically negotiated and agreed to contractually between the parties. However, businesses must comply with general registration requirements under the Accounting and Corporate Regulatory Authority of Singapore (ACRA). 

Non-compete clauses

Restraints of trade are prima facie void - considered invalid at first glance - in Singapore, unless the party seeking to rely on the clause can prove that the restraint of trade protects a legitimate interest of themself, and that the restraint of trade is reasonable in the interests of the parties and also reasonable in the public interest.

Anti-competitive behaviour

Resale price maintenance is to some extent regulated under the Competition Act. Franchisors should ensure compliance and avoid anti-competitive practices.

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