Due to the spending power of the Indonesian middle class, Indonesia is a good place to establish or expand a franchise. It is a safer alternative option to start your business.
Although the demand for a franchise business is high, the franchising regulatory is still complex. Investors need to go through bureaucratic procedures. There are some points you need to know before starting this business!
Best Possible Franchise businesses:
- Food
- Entertainment
- Coffee joints
- Beauty & Fitness
- Retail
- Digital Agencies
- Education
- Language centers!
Conditions to start the franchising business
| Franchise | Franchisor |
| Have specific business characteristics | 5 years experience in the business |
| Has been proven to generate profits | Does not necessarily need a legal entity |
| Have easy to learn & applied SOP on quality and service | Must have SOP |
| Must have registered Intellectual Property Rights | Capable to provide continuous support to the franchises |
| Needs to apply for licenses according to the activities | |
| Can sell supporting service or products, under 10% from the actual given license |
Settle franchise agreement
- Provide prospect of an offer to franchisee 2 weeks before signing
- The prospect offer and agreement have to be in Bahasa Indonesia
- Based on Indonesian Law
Obtain a Franchise Registration Certificate (Surat Tanda Pendaftaran Waralaba/STPW)
If you want to know clearly the procedure to set up your company in Indonesia, feel free to contact us!
