Have You Re-registered Your Franchise In Malaysia?

Did you know that Malaysia’s Franchise (Amendment) Act 2020 came into force on 28 April 2022? The Amendment Act introduced several changes to the franchise laws which include more rigorous requirements and penalties governing franchise registration in Malaysia. Let’s take a look at the notable changes under the Amendment Act and what this means for foreign and local franchisors.

The requirement for franchise re-registration in Malaysia

One of the most significant changes is that all existing franchisors, both foreign and local, must re-register their franchise under the new MyFEX 2.0 system as the previous MyFEX 1.0 system is now obsolete. Failure to re-register franchise registrations may result in the issuance of a notice of suspension, termination and cancellation of the franchise registration by the Registrar of Franchise.

Introduction to MyFEX 2.0

The Ministry of Domestic Trade and Consumer Affairs (MDTCA) introduced MyFEX 2.0 to replace the previous MyFEX 1.0 system. MyFEX 2.0 was launched on 28 July 2022 and all re-registration and new franchise applications are to be submitted under MyFEX 2.0.

Re-registration Process and Grace Period

Under the Amendment Act, all registered franchises will be deemed to have expired on 28 April 2022. Re-registration is not an automatic process. All old registrations must be re-registered and will be subject to a fresh examination process. The Amendment Act provides a grace period of three (3) years and all re-registrations must be done by 31 July 2025.

Franchise renewals

Under the Amendment Act, all new franchise registrations will now have an expiry date. Franchise registrations will be effective for a period of five (5) years from the date of the Registrar’s approval under the new system. Renewals should be done under the new system with payment of the prescribed renewal fee.

All foreign franchisors and local franchisors are REQUIRED to do the following:

Re-register their franchise registration under the new MyFEX 2.0 system;
Re-register for each of its franchisees under the new MyFEX 2.0 system; and
Re-register as a master franchisee (if applicable) under the MyFEX 2.0 new system.

If you require any assistance to have your franchise re-registered in Malaysia, please contact us at kass@kass.asia.

Author
Recent Posts

KASS

Communications at KASS International Sdn Bhd

KASS International is an established Intellectual Property Firm which offers a one-stop solution for IP matters in Malaysia, South East Asia, and worldwide.