Clause 7

by inserting, immediately after the definition of “financial year”, the following definition:“ “franchise” means a written agreement or arrangement between 2 or more persons by which —

a party to the agreement or arrangement (referred to in this definition as the franchisor) authorises or permits another party (referred to in this definition as the franchisee), or a person associated with the franchisee, to exercise the right to engage in the business of offering, selling or distributing goods or services in Singapore under a plan or system controlled by the franchisor or a person associated with the franchisor;

the business carried on by the franchisee or the person associated with the franchisee, as the case may be, is capable of being identified by the public as being substantially associated with a trade or service mark, logo, symbol or name identifying, commonly connected with or controlled by the franchisor or a person associated with the franchisor;

the franchisor exerts, or has authority to exert, a significant degree of control over the method or manner of operation of the franchisee's business;

the franchisee or a person associated with the franchisee is required under the agreement or arrangement to make payment or give some other form of consideration to the franchisor or a person associated with the franchisor;

the franchisor agrees to communicate to the franchisee or a person associated with the franchisee, knowledge, experience, expertise, know-how, trade secrets or other information whether or not it is proprietary or confidential; and

the agreement or arrangement referred to in paragraph (a) is not a unit trust scheme as defined in the Securities Industry Act (Cap. 289) or an investment contract;”;

by deleting the word “or” at the end of paragraph (d) of the definition of “interest”; and

by inserting, at the end of paragraph (e) of the definition of “interest”, the word “or”, and by inserting immediately thereafter the following paragraph:“(f)any franchise;”.