Confusion reigns over franchise ruling as players seek loopholes
The recently issued government regulation on franchising will hurt the industry with its difficult and sometimes unreasonable requirements, forcing some business players to look for “legal loopholes”, an association says.
“The new regulation is too tight, particularly for small and medium-size franchising businesses, which constitute about 80 percent of the 560 brands currently available in the market,” Indonesian Franchising and Licensing Association chairman Amir Karamoy told The Jakarta Post on Thursday.Amir said at present a franchising firm could base its business operations on one of two regulations; the franchising regulation just issued by the Trade Ministry, or a regulation from the Justice and Human Rights Ministry, as the business falls under the domain of intellectual property rights.
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