Doing Business

Establishing or expanding a franchise in Indonesia: What you need to know!

Trường Lăng

September 24, 2019


Due to the spending power of the Indonesian middle class, Indonesia is a good place to establish or expand a franchise. It is a safer alternative option to start your business.
Although the demand for a franchise business is high, the franchising regulatory is still complex. Investors need to go through bureaucratic procedures. There are some points you need to know before starting this business!

Best Possible Franchise businesses:

  • Food
  • Entertainment
  • Coffee joints
  • Beauty & Fitness
  • Retail
  • Digital Agencies
  • Education
  • Language centers!

Conditions to start the franchising business

FranchiseFranchisor
Have specific business characteristics5 years experience in the business
Has been proven to generate profitsDoes not necessarily need a legal entity
Have easy to learn & applied SOP on quality and serviceMust have SOP
Must have registered Intellectual Property RightsCapable to provide continuous support to the franchises
Needs to apply for licenses according to the activities 
Can sell supporting service or products, under 10% from the actual given license 

Settle franchise agreement

  • Provide prospect of an offer to franchisee 2 weeks before signing
  • The prospect offer and agreement have to be in Bahasa Indonesia
  • Based on Indonesian Law

Obtain a Franchise Registration Certificate (Surat Tanda Pendaftaran Waralaba/STPW)

If you want to know clearly the procedure to set up your company in Indonesia, feel free to contact us!
 

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