Legal Certainty for Unregistered Franchise Agreements in Indonesia

Abstract

Franchising is one form of business that is growing rapidly in Indonesia. Basically, franchise agreements must be registered with the government. This is regulated in Government Regulation No. 42 of 2007 concerning Franchising. The purpose of this study is to analyze the legal certainty of unregistered franchise agreements in Indonesia. This research uses normative research methods. The data collection technique in this research is by literature study. The data that has been collected is then analyzed in three stages, namely data reduction, data presentation and conclusion drawing. The results showed that the legal certainty of franchise agreements that are not registered in Indonesia, the Minister of Trade, Governor, Regent/Mayor, in accordance with their respective authorities, can impose administrative sanctions. In addition to administratively, unregistered franchises are also civilly problematic. If the agreement made does not fulfill the formalities stipulated by law, then the agreement can be null and void and is obliged to return the nominal investment that has been given by the franchisee.