Like many countries Indonesia has special franchising rules.
Some are common, others more localized. See
here for the background. The consensus has been that that
franchising complexity is a challenge and restricts franchise
growth.
A new regulation called Regulation of Minister of Trade Number
71 of 2019 on Franchising and was issued on 4 September 2019. It
makes several changes:
- Clearer details about franchise
business criteria are set out (uniqueness, track record, written
manual, clear business model, ongoing support and IP).
- Providing a prospectus for 2 weeks
applies to all forms of Franchiser
- Franchisers appoint more than one
Franchisee provided there are clear separate zones.
