Equal Legal Position for Franchisor and Franchisee

Regulation of the Minister of Trade No. 31 Year 2008 concerning Organization of Franchise as the implementing regulation of the Government Regulation No. 42 Year 2007 concerning Franchise explicitly stipulates that a Franchisor and a Franchisee both have an equal position under a franchise agreement. This provision should have a positive impact to the continuity of a franchisee business as it provides legal certainty.

With an equal position among a Franchisor and a Franchisee, then each party may request performance by the other party of the obligations in accordance with the agreement. Incorporation in the agreement of the rights and obligations of each party can be used as a reference or ground for a Franchisor or a Franchisee to proceed with legal action when any of the parties violates the agreement. Therefore, it is expected that both Franchisor and Franchisee will put their efforts to comply with the agreed terms and conditions under franchise agreement so franchise businesses can be maintained and developed well, and further they could stimulate the growth of national economy.



Said, Sudiro & Partners
Indonesian Legal Consultants
Sampoerna Strategic Square
South Tower, Level 18
Jl. Jend. Sudirman Kav. 45 - 46
Jakarta 12930 Indonesia
Phone: (62-21) 575.0983
Fax: (62-21) 575.0803

Websites: www.ssplegal.com
                www.saidsudiro.webs.com
                www.saidsudiro.weebly.com

Emails: mail@ssplegal.com
               sdsdp@cbn.net.id

P.O. BOX 8211 JKS.SB
Jakarta 12920