Franchise in Indonesia

In Indonesia, the franchise system became known in the 1950s, with the arrival of motor vehicle dealers through the purchase of a license. The second development started in the 1970s, namely with the beginning of the licensing plus the purchasing system, the franchise Not only did he become a merchant, but he also had the right to produce his products. For a franchise to evolve rapidly, the main requirement that a territory must be owned is a binding legal certainty for both. the franchisee and the franchiseTherefore, we can see that in a country that has clear legal certainty, the franchise is growing rapidly, for example in the United States and Japan. The benchmark for the certainty of the law will be the franchise format in Indonesia that began on June 18, 1997, with the issuance of the Government Regulation (PP), Republic of. 16 of 1997 on franchises. PAGES. 16 year 1997 on this franchise has been revoked and replaced by Regulation No. 42 of 2007 on Franchises. Additionally, other provisions that support the rule of law in commercial format franchises include the following:

• Decree of the Minister of Industry and Commerce Decree no. 259 / MPP / KEP / 7/1997 Date July 30, 1997 on the provisions of the Franchise Company Registration Procedure.
• Regulation of the Ministry of Industry and Commerce Decree no. 31 / M-DAG / PER / 8/2008 Concerning franchises
• Law no. 14 of 2001 on Patents.
• Law no. 15 of 2001 on Trademarks.
• Law no. 30 of 2000 on trade secret.

Many people are still skeptical of legal certainty, especially in the field of franchises in Indonesia. However, the current legal certainty in trying to format the franchise is much better than before 1997. This can be seen in the growing number of general laws that can protect the franchise business. Franchise developments in Indonesia, particularly in the field of fast food restaurants, are very fast. This is possible because our entrepreneurs as a recipient-based franchise (franchise) are required to develop their business through a master franchise received by search or additional franchisee continued. Using the pyramid system or the cellular system, a network of commercial format franchises will continue to expand. There are several franchise associations in Indonesia, including APWINDO (Indonesian Franchise Association), WALI (Indonesian Franchise and License), AFI (Indonesian Franchise Association). There are several franchise consultants in Indonesia including IFBM, The Bridge, Hans Consulting, FT Consulting, Ben Warg Consulting, JSI and others. There were several Franchise exhibitions in Indonesia that regularly tour in various areas of regional and national scope, including the International Franchise and Business Concept Expo (Dyandra), License Expo Indonesia (Convex Panorama), Info Franchise Expo (Neo and Magazine Indonesia ).

Two of the newcomers to this industry are Bobby steak and Simply Homy – Guest House.