In Indonesia, the franchise system began to be known in the 1950s, with the advent of motor vehicle dealers through the purchase of a license. The second development was started in the 1970s, namely with the commencement of licensing plus the purchase system, the franchisee did not just become a dealer, but also have the right to produce their products. In order for a franchise can evolve rapidly, the main requirements that must be owned by one territory is a binding legal certainty for both the franchiser and the franchisee.Therefore, we can see that in a country that has a clear legal certainty, franchise fast-growing, for example in the U.S. and Japan. Benchmark for certainty of law will be the format franchising in Indonesia began on 18 June 1997, by the issuance of Government Regulation (PP), Republic of. 16 of 1997 on Franchising. PP. 16 year 1997 about this franchise has been revoked and replaced by Regulation no 42 of 2007 on Franchising. Furthermore, other provisions that support the rule of law in business format franchising is as follows:
- Decree of the Minister of Industry and Trade Decree no. 259/MPP/KEP/7/1997 Date July 30, 1997 on the provisions of Business Registration Procedure of Franchising.
- Regulation of the Minister of Industry and Trade Decree no. 31/M-DAG/PER/8/2008 Concerning Franchising
- Law no. 14 of 2001 on Patents.
- Law no. 15 of 2001 on Marks.
- Law no. 30 of 2000 regarding Trade Secret.
Many people are still skeptical of legal certainty, especially in the field of franchising in Indonesia. However, the current legal certainty to try to format franchising is much better than before 1997. This can be seen from the increasing number of umbrella laws that can protect the franchise business. The developments of franchising in Indonesia, particularly in the field of fast food restaurants are very rapid. This is possible because our entrepreneurs as a receiver-based franchise (franchisees) are required to develop its business through a master franchise received by searching or appoint franchisee continued. Using the pyramid system or cell system, a network of business format franchise will continue to expand. There are several franchise associations in Indonesia, among others APWINDO (Indonesian Franchise Association), WALI (Franchise & License Indonesia), AFI (Indonesian Franchise Association). There are several franchise consultants in Indonesia, among others IFBM, The Bridge, Hans Consulting, FT Consulting, Ben Warg Consulting, JSI and others. There were several exhibition Franchise in Indonesia which regularly hold roadshows in various regional and national outreach, among others, the International Franchise and Business Concept Expo (Dyandra), License Expo Indonesia (Panorama convex), Info Franchise Expo (Neo and Magazine Indonesia).
Two of the new comers in this industry are Bobby Steak and Simply Homy – Guest House.