With the coming into force of the Franchise (Amendment) Act 2020
and its subsidiary legislation ("the Amendments") on
28 April 2022, the Amendments have brought along
changes to the Malaysian Franchise Act 1998 ("the Act").
This Legal Alert is intended to provide a brief snapshot of the key
changes made to the Act:
1. Foreign Franchisors
A foreign franchisor registered under Section 54 of the Act
prior to 28 April 2022 shall be deemed to have been registered
under Section 6 of the Act (previously interpreted to cover local
franchisors and local master franchisees only).
Consequently, all provisions previously perceived to be
applicable only to local franchisors and local master franchisees
will now extend to foreign franchisors, and such provisions,
include without limitation, the requirements to provide disclosure
documents as part of the compulsory practice and the filing of
annual report.
