Legal Requirements For Doing Franchise Business In Indonesia

Starting a new business is a challenge for entrepreneur candidates who do not yet have a systematic and planned of working and business management, have little experience in doing business or do not have sufficient capital. The alternative solution is acquiring a franchise business with good reputation that is profitable and in line with the entrepreneurs’ passion and interest. Another factor to be considered is the budget to acquire a franchise as the top-ranked franchises shall charge high franchise fees paid up upfront, excluding the initial investment costs.

Pursuant to Ministry of Trade Regulation Number 71 of 2019 concerning Franchising, a franchise must meet some criteria as follow:
a. has typical business characteristics;
b. proven that the franchise is already profitable;
c. has a written standard for marketing goods and/or services;
d. easy to teach and apply;
e. there is continuous support; and
f. Registered Intellectual Property Rights (IPR).

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