Company Registration & Legal Services
A franchise business model is one of the best business agreement to be done in Indonesia to start up your business because, through franchise relationship, business owners don’t have to worry about things related to the business strategy. The franchise is a business where franchisors will be responsible in terms of planning, the operating system and the business strategy of the franchise, so you only need to carry out the operational system and procedures that have been informed by you when agreeing to the franchise business cooperation.
As easy as it sounds, starting a franchising business in Indonesia will also require you to adhere to Indonesia laws, as mandated through Peraturan Menteri Perdagangan (Ministry of Trade) No. 31/M-DAG/PER/8/2008 regarding the Implementation of Franchising. Both Franchisors and Franchisees must obtain a Franchise License or STPUW in order to set up a franchise business in Indonesia.
STPUW (Surat Tanda Pendaftaran Waralaba) acts as legal evidence that Franchisee has officially registered their names under the franchise agreement.
As a market-leading business consultancy in Indonesia, Lets Move Indonesia helps your franchise business to acquire the STPUW license, ensuring an efficient process and zero hassle when opening a franchise in Indonesia.
Franchising involves a unique business relationship where a franchisor grants a license to a franchisee, allowing them to operate a business using the franchisor’s established brand, products, and systems.
Franchisor:
Franchisee:
In essence, the franchisor creates and maintains the franchise system, while the franchisee operates a specific unit within that system. The franchisor provides the blueprint for success, while the franchisee implements it at the local level.
Yes, but they have to register their company first as an Entity in Indonesia.
Yes, you need to make at least a PT to become a Franchisee.
Your business license can be revoked and government can legally close your business.
Navigating Indonesia’s franchise laws can be complex. Engaging a legal advisor is crucial to ensure your franchise agreement complies with Indonesian regulations, safeguarding both the franchisor and franchisee. They will:
In a franchise arrangement, the franchisee usually does not own the property where they operate. Instead, they have the “right to use” the franchisor’s brand and business model within a specified location. This allows franchisees to benefit from a proven business model and established brand recognition without the need for extensive property investment.
Features | Franchising | Setting Up Your Own Business |
---|---|---|
Brand Recognition | Established brand and reputation, attracting customers more easily. | Building brand recognition and customer loyalty takes time and effort. |
Business Model | Proven business model, reducing the risk of failure | Flexibility to create and adapt your own unique business model. |
Support | Training, marketing, and operational support from the franchisor. | You are responsible for all aspects of business operations and support. |
Costs | Franchise fee, ongoing royalties, and marketing fees can be expensive. | Lower initial costs but may incur higher expenses for marketing and development. |
Control | Limited control over business operations and decision-making, following the franchisor’s rules. | Full control over all aspects of your business. |
Agreement | Franchise agreement may include restrictions on pricing, products, and territories. | No restrictions, but you are solely responsible for legal and regulatory compliance. |
Relationship | Business relationship is established with the franchisor, requiring adherence to their standards. | You are independent and not bound by any franchisor relationship. |
Disclosure | Franchise disclosure documents provide detailed information about the franchise. | You are responsible for researching and understanding all aspects of your business. |
Expansion | Potential for easier expansion with the franchisor’s support. | Expanding your business may be more challenging and require additional resources. |
Innovation | Limited ability to innovate or change the business model. | Freedom to innovate and adapt your business to market trends and customer needs. |
Exit Strategy | License to use the brand may have restrictions on selling or transferring the business. | Greater flexibility in selling or transferring your business. |
The specific terms and conditions of a franchise agreement will vary depending on the franchisor and the industry. It’s essential to thoroughly review the franchise disclosure documents and seek legal advice before entering into any licensing and franchising agreement.
There are certain classifications for Franchisors and Franchisees that require different prerequisite documents to file in order to obtain a Franchise License:
Contact Us
Stay informed with the latest Indonesia Visa & Business updates.
Latest News
Indonesia welcomed the inauguration of its membership in BRICS organisation after being announced by the 2025 Chair of BRICS, Brazil on Monday, (6/1/2025). Through the official statement, the Ministry of Foreign Affairs confirmed that the membership in BRICS represents a strategic step to strengthen democratic collaboration with other developing countries under the framework of inclusivity, […]
Natalia Harfiana
01/12/2025
Indonesia’s tax system continues to play a pivotal role in supporting national development and achieving fiscal sustainability. However, enhancing tax revenue remains a significant challenge for the government, as annual targets consistently rise amidst various obstacles. As of 31 October 2024, Indonesia tax revenue reached IDR 1,517.5 trillion, approximately 76.3% of the State Budget (APBN) […]
Lets Move Indonesia
01/02/2025
If you plan to enjoy the wonders of Indonesia or conduct a short business trip to the country, the visa B211A might be something you are familiar with. This visa is valid for 60 days and is extendable for various purposes, making it a suitable choice for an ideal trip period. However, the 211 visa […]
Lets Move Indonesia
12/24/2024
If you’re planning frequent trips to Indonesia or considering a longer stay with flexibility to travel in and out, understanding Indonesia’s multiple-entry visa options may cut you a lot of hassle. This guide explores multiple-entry visas in Indonesia for 2024, including their eligibility, requirements, and latest updates. What is a Multiple Entry Visa? A multiple-entry […]
Lets Move Indonesia
12/24/2024
If you’re planning an extended stay in Indonesia, understanding the role of a visa sponsor is critical. Whether you’re looking to live in Bali or another part of the country, navigating the visa process is essential for ensuring a smooth experience. In this article, we’ll provide expert insights into the purpose of a visa sponsor, […]
Lets Move Indonesia
12/23/2024
For foreign tourists travelling to Bali from 2024 to 2025, the Bali Provincial Government has implemented a new requirement upon entry. The Bali Tourist Tax, also known as the Bali Tourism Levy effective 14 February 2024 and introduced for a fee of 150,000 IDR (approximately USD 10 or 9 EUR) for international visitors arriving on […]
Lets Move Indonesia
12/20/2024
Bellagio Mall, Jl. Mega Kuningan Barat Kav.E4 No.3, Setiabudi, Jakarta 12930, Indonesia
Jl. Sunset Road No.105, Seminyak, Kec. Kuta, Kabupaten Badung, Bali 80361
Jl. Subak Sari No. 13, Tibubeneng, Kuta Utara, Kabupaten Badung, Bali 80361, Indonesia
Jl. Danau Tamblingan 79, Sanur, Denpasar Selatan, Kota Denpasar, Bali 80361, Indonesia
Our journey began in 2016 when we had one goal-to become Indonesia’s Most Ethical Visa & Business Consultancy. Our dream was to become a one stop shop for all expatriate needs, offering honest & transparent services at competitive prices. Find Out More »
Enter your email address to get latest updates and offers from us.
Copyright © 2024. All Rights Reserved.
LetsMoveIndonesia