The Government deems it necessary to know the legality and reliability of business the Franchisor both from abroad and domestic efforts to create transparency of information that can be used optimally by the national effort in marketing the goods and / or services to the franchise.In addition, the Government can monitor and compile data Franchising both the number and types of businesses are franchised. To that end, the Franchisor before making franchise agreements with franchisees, franchise offering prospectus must be delivered to the Government and the prospective Franchisee.On the other hand, if there is agreement Franchisor, Franchisee shall submit to the Government franchise agreement.Government regulation is expected to provide certainty and legal certainty for the Franchisor and Franchisee in marketing their products. "(Excerpt of Chapter I of the explanation for Regulation No. 42 of 2007)In the Government Regulation No. 42 of 2007 stated that the franchise must meet the 6 (six) criteria must be met, namely:
Having a distinctive feature of business.What is meant by "typical" is a business which has the advantage or difference that is not easily replicable in comparison with other similar businesses, and consumers are always looking for the hallmark of the question. For example, management system, the way sales and service, or arrangement or manner of distribution is a special characteristic of the franchise giver.
Already proved beneficial.The meaning of "is a benefit" refers to the giver is a franchise that has been owned less than 5 (five) years and has had business tips to overcome the problems in the course of its business, and this is proved by surviving and growing the business profitably .
Have a standard of service offered goods and services made in writing.The definition is standard in writing so that franchisees can implement the business within a clear framework and the same (standard operational work).
Easily taught and applied.What is meant by "easily taught and applied" is easy to implement so that the franchisee who has no experience or knowledge of similar efforts to carry it out properly in accordance with operational guidance and management of sustainable franchise granted by the giver.
The existence of continuous support.What is meant by "continuous support" is support of the franchise giver continuously as operational guidance, training, and promotion.
And intellectual property rights that have been registered.The term "intellectual property rights that have been registered" is the intellectual property rights related to business such as brands, copyrights, patents, trade secrets already on the register and have a certificate or are in the process of registration at the competent agency.
