We were informed that MyFEX2.0 will be launched in March 2022.

Meaning, franchisors, franchisees and master franchisee MUST ‘key-in’ into MYFEX2.0. Unlike the original MyFEX, which is very much an online e-filing system, MyFEX2.0 is a combination of an online e-filing system and manually preparing all the documents to be PDFed into the system.

Documents mentioned are documents pursuant to section 7 Franchise Act includes but not limited to the Complete Disclosure Document, Franchise Agreement, Operation Manual and Training Manual, audited financial records, and any other documents pertaining to the franchise including all amendments under section 11.

Sadly, MyFEX2.0 is not a migration system but a fresh new system where all stakeholders MUST apply and prepare documents to be uploaded into the system making it very cumbersome especially to older or foreign franchisors who had their exemption under section 54 Franchise Act.

My worry is none other than the issue of enforcement as the Franchise Act is very much quasi criminal Act of Parliament. Even an omission or any failure to act can be an issue of an offence under the Act. An example, terms of an agreement in section 18(2) must be adhere to. If a clause on cooling off period is omit from the agreement, it warrants a ministerial action that can amount to an offence or a failure to deliver the annual report under section 16 can cause grave misconduct, thus creating an offence.

As such, any migration or new method of registration of the franchise, the Registrar must give grace period for adherence and to suspend all form of enforcement by the Ministry.