1. The Franchise Agreement: A Vital Blueprint
At the heart of any successful franchise venture lies the franchise agreement. It’s not just a document; it’s a blueprint for the partnership between the franchisor and the franchisee. In Indonesia, the process of establishing a franchise business begins with the creation of a robust franchise agreement.
Here’s what you need to know:
A franchisor must prepare and deliver a franchise agreement to the franchisee at least two weeks before the contract is executed. This critical step ensures transparency and allows both parties to fully understand their rights and obligations.
If your franchise agreement is in English, it must be translated into Indonesian and certified to be legally effective. This linguistic bridge ensures that the agreement is accessible and enforceable under Indonesian law.
Compliance is Key:
Both franchisors and franchisees embarking on a franchise agreement must adhere to Indonesian laws and regulations. This includes compliance in various domains such as health, consumer protection, environment, education, spatial layout, intellectual property, and employment.