Understanding the Impact of The Franchise (Amendment) Act 2020 on Franchising in Malaysia
The Franchise (Amendment) Act 2020, effective from April 28, 2022, modernises Malaysia's franchising regulations, strengthening requirements for franchisors and franchisees. Key changes include the new MyFEX 2.0 registration system, stricter registration processes for foreign franchisors, mandatory five-year renewal terms, and public display of franchise registration. Non-compliance can result in severe penalties. The Act also reallocates franchise registration responsibilities to the Ministry of Entrepreneur Development and Cooperatives, signaling a focus on supporting entrepreneurial ventures. These amendments aim to create a transparent, conducive franchising environment, enhancing compliance and fostering growth in Malaysia's franchising industry.
July 2, 2024
Raja Nadhil Aqran