Franchise Agreement Research Articles

The Role of the Prospectus in the Application of the Disclosure Principle to the Franchise Cooperation Agreement

In today's business world, franchising is also known, which are generally carried out by companies and individuals who carry out business activities in the services, food and beverage sectors, such as fast food restaurants and cafes. Franchising in Indonesia is currently regulated in Government Regulation Number 42 of 2007 Concerning Franchising, this Government Regulation is stipulated to establish a balance between the parties in a franchise contract through various procedures that must be fulfilled by the franchisor and franchisee in a franchise business, mandatory procedures fulfilled by the parties in the franchise contract according to Government Regulation Number 42 of 2007 namely the Franchise Offer Prospectus. However, both the Franchisor and the Franchisee as parties to the franchise contract in practice in the business world in Indonesia until now very rarely understand the importance of the Franchise Offer Prospectus and are aware of the existence of the Franchise Offer Prospectus itself, this is due to a problem law, that is, the rule of law in the field of franchising is blurred. Thus this journal will discuss the Franchise Offer Prospectus Arrangements in the Franchise Agreement. The legal method used is the normative legal method, using primary data obtained from legal principles, comparisons of laws written in laws and regulations, as well as applicable norms and secondary data obtained by conducting library research. The results obtained in this study are that the arrangement of the franchise offer prospectus in the franchise agreement refers to article 7 of Government Regulation Number 42 of 2007 concerning franchising which is still general in nature and still needs to be corrected, so that the delivery of the Franchise Offer Prospectus by the Franchisor to the Prospective Franchisee is intended to the franchisee can carry out a business feasibility study on the franchise business that he will undertake.

Juridical Analysis of Franchise Law in terms of Civil Law Aspects

Franchising arises due to the impact of the advancement of the global economic system. In the business world, especially in the world of trade, Indonesia is dominated by trade in goods which is the result of cooperation between Indonesian and foreign entrepreneurs. There are many forms of franchising in our environment, including fast food businesses such as those from outside and within the country such as Mc Donald, KFC, Pizza Hut, Simple RM, Mbok Berek, Mrs. Suharti and many other brands that are familiar to businesses. home furnishings and office furniture such as Ace Hardware and Ikea. In Indonesia, the legal basis governing franchising is basically not listed in the Criminal Code, but is regulated in Government Regulation No. 42 of 2007 concerning Franchising and also in Regulation of the Minister of Trade of the Republic of Indonesia Number 53/M-DAG/PER/8/2012. Basically the franchise agreement is a type of agreement that is born and grows in the community whose arrangements can be seen in the previous explanation, therefore the franchise agreement is classified as an innominate type of agreement. As referred to in Article 3 of Government Regulation No. 42 of 2007 concerning Franchising, basically aspects of intellectual property rights play a very important role in it. The forms of legal protection contained in a franchise can be classified into two types of legal protection, namely protection in the form of preventive and repressive protection, while the forms of sanctions that can be applied are in the form of administrative sanctions, written warnings or can also be subject to revocation of STPW for Franchisor and Franchisee. who violate the provisions. As a social institution in the field of franchising, or what we are more familiar with as franchising, it is certainly not free from all its weaknesses, even so, this system still has various principles of benefit and advantages in it.

Analisis Aspek Hukum Perjanjian Waralaba (Franchise) Dalam Perspektif Hukum Perdata

Currently, franchise business schemes are being widely used in society. Franchising, as a form of business investment, requires clear regulations to protect the rights and obligations of the parties involved. The main aim of this research is to provide a more comprehensive view of the legal implications in the franchise business model. The method used is normative juridical. The results of this research found that the importance of understanding Article 1320 of the Civil Code is fundamental in upholding the validity of franchise agreements, where conformity with the law is the main basis. Regulations such as PP Number 42 of 2007 and Minister of Trade Regulation Number 12/M-Dag/Per/3/2006 provide more detailed guidance regarding procedures, rights, obligations and procedures for registering franchise businesses.

Legal Protection for Franchisees Due to Unauthorized Franchise Agreements

This study analyzes legal protection for franchisees in unauthorized franchise agreements. The research method involves analysis of legal documents, literature studies, and a normative approach to the relevant legal framework. The results show that the franchisee has the option of cancellation of the contract, compensation, termination of unlawful activities, and recovery of rights that are not respected. Challenges in providing effective legal protection include regulatory weaknesses, cost and time of legal proceedings, and the power imbalance between franchisees and franchisors. This research has implications for increasing awareness, legal protection, and policies that encourage fair and stable business practices in the franchise industry.

Asas Proporsional dan Asas Itikad Baik dalam Perjanjian Waralaba

The purpose of the study to determine and analyze the urgency of the principle of proportionality and the principle of good faith in the franchise agreement, legal protection and minimization of problems. The problem of how the urgency of the proportional principle and the principle of good faith in the franchise agreement, then the proportional principle and the principle of good faith in the franchise agreement can be a solution in minimizing the problems posed by the franchise agreement and legal protection of the parties.the method used in this study is juridical normative. This research is based on treaty theory, justice theory, proportional principle in Treaty, legal protection. Legal issues the occurrence of ambiguity of norms, that based on Government Regulation No. 42 of 2007 on franchise has contained rules regarding clauses in the agreement clearly as many as 11 clauses that must exist but in the implementation of the standard agreement is an agreement made by one of the parties, causing problems in the future. the results showed that (1) the principle of proportionality and good faith is a unity in a system of checks and balances whose task is to encourage the creation of legal relations in a proportional contract.(2) the principle of good faith and the principle of proportionality in making a franchise agreement, can prevent losses that will be experienced by other parties and is able to minimize the problems that will be caused before the agreement,at the time of the agreement,and after the agreement.

Penerapan Asas Itikad Baik dalam Pembuatan Perjanjian Waralaba sebagai Dasar Pembuatan Kontrak

Standard agreement is a contract that tends to be one-sided and violates the principle of good faith. It is different from what is stated in Article 1338 (3) of the Civil Code that the Agreement must be executed in good faith. In practice, the application as the basis for the formation of franchise agreements, the cause of deviations in rights and obligations by strong parties, resulting in the loss of weak parties. so that it looks far from the values of justice. To find out whether the principles are applied in making a franchise agreement is to pay close attention to the provisions/articles governing the rights and obligations of the parties. This study aims to determine the application of the principle as the basis for making franchise agreements and the legal consequences if the principle is not carried out. Empirical juridical research methods, with the specifics are descriptive analytical. the conclusion of the application of that in the franchise agreement must be treated for the fulfillment of the rights and obligations of the parties, the legal effect on the principle is that the agreement is null and void or voidable.
 
 

THE CONCEPT OF FRANCHISING IN THE INDONESIAN’S CIVIL LAW AND ISLAM

The franchise concept is an agreement between the franchisor and the franchisee. This means that the franchisor, as the patent owner of the trademark, has the right to receive a certain amount of royalties or fees to be paid by the franchisee based on legal provisions. Franchise agreements are regulated in Indonesian civil law with regard to special rights to trademarks. While in Islamic law, the franchise agreement is actually a development of a form of cooperation (syirkah). This research uses the library research method, where data sources come from laws and other secondary data. The results of this study indicate that a franchise agreement under civil law, which refers to Article 4 of Government Regulation No. 42 of 2007 on Franchising, states that every franchise agreement of any kind must be made in writing by the parties. The existence of a franchise agreement is an innominaat contract. Innominaat contracts are contracts that arise, grow and develop in practice. From the perspective of Shari'ah economic law, franchise agreements belong to the group of shirkah (partnership) and the law is permissible. In addition, the franchise agreement involves the cooperating parties, namely the franchisor and the franchisee. Meanwhile, the franchisor's capital consists of intellectual rights in the form of company names, logos, systems and methods, which are owned and developed by the franchisor.

Effects of intellectual capital and management control systems on organizational performance mediated by cooperation in the franchising system

This study analyzed the effects of intellectual capital and management control systems (MCS) on performance, mediated by cooperation in a franchising system, on the assumption that those, in the condition of antecedents, can improve performance through cooperation since contracts are signed for that purpose. The results showed that intellectual capital (human, structural, and relational) promotes improved performance and cooperation in a franchising system. Similarly, MCS (performance appraisal systems and socialization) translate into performance and cooperation. However, no mediating effect of cooperation was observed in intellectual capital and MCS` relationships with performance. A survey was carried out with 112 fuel dealer managers, and structural equation modeling was applied to test the hypotheses. It was concluded that cooperation did not potentiate the effects of intellectual capital and MCS in performance on the performance of the investigated franchising system. This finding raises the need for further research as it clashes with the purpose of cooperation with has been advocated in the literature and expected in a franchise agreement.

THE COMPARATIVE LAW OF FRANCHISE AGREEMENTS IN REALIZING PROTECTION BETWEEN PARTIES

Franchising as a business concept regarding the granting of the use of intellectual property rights and operational activity systems by franchisors to franchisees is a legal relationship between franchisors and franchisees regulated in a franchise agreement. The purpose of this research is to analyze the Regulations regarding franchising in Indonesia and Regulations regarding franchising in other countries to compare arrangements between Indonesia and other countries. This legal research uses normative juridical research methods. The approach used is a comparative approach that involves researcher activities that begin with identifying the effect of one variable on another. franchise is a relationship based on a contract between the franchisor and the franchisee. Franchisees operate using trade names, formats, or procedures owned and controlled by the franchisor. Legal regulations in other countries often provide global trademark protection, allowing trademark owners to protect their trademarks in several countries. In Indonesian legislation, the legal protection of franchises is limited to the territory of the Republic of Indonesia.

Tinjauan Yuridis Perjanjian Waralaba Menurut Hukum Positif di Indonesia

A franchise is a form of business partnership between two parties known as the franchisor and the franchisee. During the partnership period, the franchisee has the right to use the franchise's trademarks, business systems, technical assistance, and training, as well as other important aspects related to the business. In fact, a franchise agreement has a fairly high level of complexity because it involves many aspects and certain details that must be considered by both parties. The relationship between franchising and default is very close because the implementation of the contract is difficult when there is disagreement about the rights and obligations of each party in the franchise cooperation. If there is a violation on the part of the franchisor, the franchisor has the potential to take legal action. Such violations may include non-compliance with or violation of established procedures in promoting and disseminating the franchise mark, as well as non-compliance with the rules set by the franchisor in managing the business. By conducting this review, it is hoped that it will provide a firmer and more thorough understanding of franchise contracts from the perspective of positive law in Indonesia, so that all parties involved in the agreement can understand their rights and responsibilities and avoid possible legal problems in the future.

Perspective of Intellectual Property Rights Related to Copyright in the Scope of Franchise Business

Franchise business is closely related to Intellectual Property Rights. Intellectual Property Rights, especially copyright, are exclusive rights that need to be protected because they are made based on the creativity, ideas, energy, and time of the creator. Legal protection of IPR in the franchise business is carried out to protect related parties from losses and actions that occur outside the franchise agreement. Indonesia itself has accommodated the need for IPR protection or exclusive rights with applicable laws and regulations. These laws and regulations not only protect the rights of the franchisor, but also regulate and protect the rights and obligations of the franchisee. In the international arena, Indonesia also participated in the Forum Agreement Establishing the World Trade Organization (Agreement on the Establishment of the World Trade Organization.

Aspects of Justice in Business Contracts Force Majeure Study on Franchise Agreements in the Covid-19 Period

The agreement, in essence, is an agreement, characterized by meeting the will (meeting of mind, mutual assent) of the parties to achieve an agreed goal in order to provide the maximum possible benefit for the parties. As a conclusion, justice has not been achieved for the parties, especially the franchisee, due to the very strong bargaining position of the franchisor, which is not balanced when comcpared to the weak bargaining position of the franchisee. This has an impact on the contents of the contract which is fully made by the franchisor, which of course tends to provide the greatest benefit to the franchisor. Force majeure or force majeure can be in the form of earthquakes, fires, floods, landslides, wars, military coups, embargoes, epidemics, and so on. During the corona pandemic, which is currently hitting all parts of the world, of course it has an impact on the implementation of a business contract. This paper examines force majeure in an agreement that occurred during the corona virus pandemic which cannot automatically be used as a reason for canceling a business contract, but can be used as a way to negotiate in canceling or changing the contents of the contract.

Application of Franchising as a Form of Agreement Object

The approach in this study uses a normative juridical approach. The juridical approach is an approach to the problem by looking at it from the point of view of the applicable laws and regulations, especially regarding the application of franchising as a form of agreement. Therefore, this type of research is normative relating to the principles and norms in the implementation of franchise agreements, namely between the franchisor and the franchisee. In this paper using primary and secondary data obtained from library materials in the form of laws, government regulations, the Civil Code and literature related to problems and derived from legal materials such as primary legal materials, secondary legal materials and tertiary legal materials. A franchise agreement is a form of agreement involving the franchisor as the franchisor and the franchisee receiving the franchise. This legal relationship gives rise to binding rights and obligations for franchisors and franchisees. The franchise agreement includes an innominate agreement that is regulated outside the Criminal Code. Legal sanctions in violation of franchise agreements are regulated in Article 16 of Government Regulation Number 42 of 2007 where legal sanctions in the form of administrative sanctions are carried out through 3 (three) stages, namely giving written warnings, fines and/or revocation of franchise registration certificates.

Menantea Franchise Agreement Case Analysis Reviewed from the KUHPer

The development of the Indonesian economy was followed by the development of legal forms of agreements. Nowadays many people start a business by buying a business system or what is known as a franchise which in Indonesian is called a franchise. Franchising comes from the word Wara which means more and Profit which means profit. Literally franchising means that franchising is a business that provides more profits. In addition, according to the Indonesian Franchise Association (AFI), what is meant by franchising is a system of distributing goods or services to end customers, where the owner (franchisor) gives rights to individuals or companies (franchisees) to carry out business with a brand, name, system, procedure and ways that have been determined beforehand in a certain period of time covering a certain area. Menantea is a tea beverage product that was founded in 2021. Menantea does not only sell tea drinks but also food in the form of chicken and potatoes. Menantea officially opened on April 10 2021. However, only 11 days later, alias on August 21 2021, they are reported to have offered a franchise. In fact, this is something that is not fair. Because, a business that can be offered as a franchise must have an STPW (Franchise Registration Certificate), one of the conditions is to fulfill the profit offering prospectus. In this case the author will discuss legal protection and legal remedies that can be taken by the Franchisee in the Menantea franchise agreement.

Breach of Non-Competition Clause in Franchise Agreements Related to Unfair Business Competition

The non-competition clause in the franchise agreement is the franchisee's commitment not to run a similar business or potentially become a competitor to the franchisor's business within a certain period as a form of protection of the franchisor's intellectual property rights and appreciation for the transfer of know-how that the franchisor has carried out in the form of knowledge, concept, and experience to the franchisee. There are two purposes of this article. First is to explore and analyze cases of breach of the non-competition clause in franchise agreements in Indonesia carried out by franchisees can be qualified or not as a form of unfair business competition as regulated in Article 1 number 6 Law Number 5 of 1999 concerning Prohibition of Monopolistic Practices and Unfair Business Competition. Second is to investigate the legal remedies taken by the franchisor against the franchisee who breaks the non-competition clause in the franchise agreement. This research project uses qualitative method. This research involved respondents and informants from business owners of national franchisors. There are two results of this study. First, breaking non-competition clauses in franchise agreements, which have been read before signing, can qualify as unfair business competition. Second, if a franchisee or former franchisee breaks a non-competition clause, it is necessary to communicate with the violating party first before giving a summons/warning. Moreover, if it is still not heeded, the franchisor can file a lawsuit in court or submit a complaint to The Indonesia Competition Commission (KPPU).<p> </p>

Kekuatan Eksitensi Bisnis Waralaba Sebagai Perjanjian Innominaat Di Indonesia

The Indonesian state system is a prosperous country where a safe, comfortable and peaceful society is the benchmark. Welfare development is supported by economic development in the business sector, one of which is the franchise business. Franchise is a business venture that provides benefits for the parties involved in the agreement. Franchise agreements are regulated in general in the Civil Code, Government Regulations and Minister of Commerce Regulations governing franchising. Franchise agreements are like agreements in general that are regulated in the Civil Code and are bound by the principles of the agreement. However, in reality there is often an imbalance or deviation from the principles committed by one of the parties. Therefore it is needed, a law that specifically regulates the existence of a franchise agreement. Legislation is made by the House of Representatives which must be drafted and ratified as soon as possible so as to create legal certainty and protection for the parties.

Features of legal regulation of franchise agreement in Spain

The purpose of the article is to study features of legal regulation of franchise agreement in Spain. Research methodology. The research is based on the use of general scientific and special-scientific approaches such as dialectical, abstraction and generalization, logical, system analysis, historical and legal method, comparative and legal, logical analysis. Research results. Among the EU Member States, which have adopted special acts regulating franchise agreement issues, Spain is especially notable for its Royal Decree 201/2010, which regulates the procedure for concluding franchise agreement in detail. Practical implication. It is stated that there is statutory provision on pre-contractual disclosure in Spain, the main purpose of which is to protect a potential franchisee by providing him with the relevant information. Value /originality. This scientific work is the first research in Ukraine devoted to the characteristics of franchise agreement in a separate country (in Spain).

Implementation of Government Regulation Number 42 of 2007 Regarding Franchise Agreements in Local Fast Food Businesses

Franchising is one of the opportunities to become an entrepreneur, which recently is one of the developing economic activities. Franchise itself is a special right owned by an individual or business entity with business characteristics in order to market goods and/or services based on a franchise agreement. Franchise Agreements have implications for Local Warteg Franchise and Japanese Udon Foreign Franchise. The purpose of this research is to know and understand the Domestic Franchise Agreement and Foreign Franchise and to know and understand the Implementation of Government Regulation Number 42 of 2007 Regarding Franchise Agreements in Local Fast Food Businesses. The research method used is descriptive with a normative juridical research type using a statutory approach (Statute Approach) then data collection techniques through document studies on secondary data, then the data is analyzed with qualitative juridical. Based on the results of the study it was concluded that the Object of Research on Local Fast Food Franchise Agreements, namely domestic franchises, namely Warteg and Japanese Udon Foreign Franchises both made by the nation's children and foreign franchises still refer to positive law in Indonesia, namely Government Regulation 42 of 2007 concerning Franchising , then the Implementation of Government Regulation Number 42 of 2007 regarding Franchise Agreements on Local Fast Food is specifically regulated in Article 5 of Government Regulation Number 42 of 2007 concerning Franchising Other than Clauses that must be in the Franchise Agreement, one of the legal instruments that must be observed is STPW.

Uwagi do projektu ustawy o działalności franczyzowej

The aim of the paper is to present comments to the second draft of the franchise agreement regulation proposed by Rafał Adamus. Undoubtedly, the franchise agreement requires statutory regulation, hence the solutions to be adopted in the planned act are very important. The study discusses the issue of the place of regulation of the franchise agreement (the Civil Code or a separate act), the definition of this agreement, the regulation of the agreement taking into account the Act on Combating Unfair Competition of 16 April 1993, the essence and content of the information prepared by the franchise network organizer, the rights and obligations of the parties of the agreement, the advisability of introducing regulations on practices infringing the collective interests of franchisees and intertemporal rules. The paper contains suggestions concerning additional solutions in the planned regulation, e.g. about issues related to the sub franchise agreements, the rules of joint (and several) liability of the franchisee and the franchisor towards third parties, overriding provisions and regulation regarding the obligation of the parties to the contract to care for the good name of the franchisor and the entire network. The study is to be an incentive for further intensive work on the statutory regulation of the franchise agreement.

Legal nature of commercial concession contract (franchising)

The article is devoted to the analysis of the theoretical foundations for determining the legal nature of the commercial concession contract (franchising) and its features. An analysis of the current legislation regarding the determination of the legal nature of the commercial concession contract was carried out. It is argued that the issues of the legal nature of the commercial concession (franchising) contract remain debatable today. In addition, the institution of franchising in Ukraine needs a thorough rethinking and significant reformation, both theoretically and practically. It is substantiated that according to the analysis of the current legislation of Ukraine, the international law enforcement practice, a commercial concession is mediated by a franchise agreement. For this purpose, it is argued that the commercial concession agreement is equivalent to franchising agreements abroad. The author states in the article that according to the analysis of the current legislation of Ukraine, international law enforcement practice, a commercial concession is mediated by a franchise agreement. Considering the fact that the term "franchising" is unknown to the legislation of Ukraine, its equivalent is the concept of "commercial concession", and in order to avoid additional inconveniences at the stage of adapting franchising to the conditions of Ukrainian legislation, it is suggested that it is appropriate to use concepts commonly used in international practice. The statement on the adoption of the Law "On Franchising" with the aim of preventing confusion of concepts and strengthening the legislative framework was supported. Scientific positions on the interpretation of the concept of franchising and the features of the commercial concession contract are considered. Proposals for improving the theoretical foundations of the specified problem have been formulated.