Franchises must re-register pursuant to amendments to Malaysian Franchise Act 1998 coming into effect

20 December 2022

The Franchise (Amendment) Act 2020 (“Amendment Act”) came into force on 28 April 2022 and introduced various changes to the franchise laws and practice framework set out under the Malaysian Franchise Act 1998 (“Act”), including introducing more stringent requirements and penalties governing franchise registration in Malaysia.

One of the most notable changes to the Act is the alignment of the franchise registration process and requirements for foreign franchisors with local franchisors. Accordingly, a new software system called MyFEX 2.0 (“New System”) was unveiled by the Registrar of Franchises on 28 July 2022 to meet the requirements of the Amendment Act.

This article by our associate firm in Malaysia, Rahmat Lim & Partners, addresses key questions raised by existing franchisors (both local and foreign) and franchisees (both master and unit) relating to the New System and the practical impact of the amended Act on existing franchise registrations. To read the full article from the Rahmat Lim & Partners website www.rahmatlim.com, please click here.