FRANCHISE
Franchise in Indonesia is regulated in Government Regulation Number 30 of 2000. Franchise is defined as a special right owned by an individual or a business entity to business systems with business characteristics in order to market goods and / or services that have proven successful and can be utilized and / or used by other parties under a franchise agreement. Franchise must meet requirements such as has a business characteristic and standard of service of the goods or services, continuously support, proven to have been profitable, and easy to teach and apply.
The compliance requirement under the Franchise regulation is onerous and impractical for some business. Alternative arrangement such as IP Lincesing should be considered instead of outright franchise agreement.
We assist client in:
- structuring license structures transforming franchise into license arrangements.
- Drafting and negotiationg franchise agreements and registering the necessary documents with Trade Departments.