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Membuka cabang atau pakai sistem franchise?

Membuka cabang ataupun menawarkan skema kemitraan atau franchise kesemuanya adalah metode ekspansi usaha. Membuka cabang biasanya dilakukan jika perusahaan punya dana yang cukup untuk membuka cabang, ingin rahasia bisnisnya tetap aman, ingin kontrol usaha lebih mudah, dan mau repot mengurusi karyawan.

Sebaliknya sistem waralaba atau kemitraan dipilih jika perusahaan tidak punya dana berlebih untuk buka cabang dan tidak mau repot mengurusi karyawan (karena karyawan adalah karyawan mitra atau franchisee). Jika Anda mau menggunakan sistem franchise ataupun kemitraan, sebaiknya usaha Anda sudah mempunyai sifat-sifat berikut : 1. 2. Adanya pengalaman bisnis yang telah teruji dan mendatangkan keuntungan. Adanya penawaran yang wajar (tidak berlebihan) dan transparan terhadap informasi-informasi mengenai usaha yang telah berjalan, termasuk bersedia memberikan informasi mengenai proyeksi keuangan usaha kepada calon mitra Anda. Adanya Standard Operating Procedure (SOP)/manual operasi secara jelas, tertulis, dapat dipelajari, dan benar-benar mencerminkan standar operasi yang telah dilakukan saat ini di lapangan sebagai cerminan bahwa bisnis yang dijalankan memang mudah diajarkan. Adanya perjanjian kerjasama antara kedua pihak (pemberi hak dan penerima hak) yang tidak bertentangan dengan peraturan di bidang franchise (PP No. 42/Thn 2007) dan peraturan perundangundangan lain yang berlaku di Indonesia.

3.

4.

Memberikan pelatihan dan pendampingan yang berkesinambungan kepada franchisee/mitra di awal pembukaan usaha dan secara berkala selama masa perjanjian kerjasama. Silakan memutuskan apakah Anda akan buka cabang atau pakai sistem franchise. Sukses selalu untuk Anda. (Pietra Sarosa, RFA adalah Managing Partner Sarosa Consulting Group. Tulisan ini pernah dimuat di Majalah DUIT edisi 09/III/September 2009.) Sumber : http://vulcan3.sip.co.id/duit/majalahduit/index.php?option=com_content&view=article&id=379:pilihfranchise-atau-buka-cabang-sendiri&catid=50:cat-tips&Itemid=66

Nama : Muhammad Al Hafidhi Tingkat : III A PBB

Waralaba Dari Wikipedia bahasa Indonesia. adalah badan usaha atau perorangan yang diberikan hak untuk memanfaatkan dan atau menggunakan hak atas kekayaan intelektual atau penemuan atau ciri khas yang dimiliki pemberi waralaba[4]. yang dimaksud dengan waralaba adalah perikatan dimana salah satu pihak diberikan hak memanfaatkan dan atau menggunakan hak dari kekayaan intelektual (HAKI) atau pertemuan dari ciri khas usaha yang dimiliki pihak lain dengan suatu imbalan berdasarkan persyaratan yang ditetapkan oleh pihak lain tersebut dalam rangka penyediaan dan atau penjualan barang dan jasa[3]. dimana pemilik merek (franchisor) memberikan hak kepada individu atau perusahaan untuk melaksanakan bisnis dengan merek. nama. • Franchisor atau pemberi waralaba. yang dimaksud dengan Waralaba ialah: Suatu sistem pendistribusian barang atau jasa kepada pelanggan akhir. Sedangkan menurut versi pemerintah Indonesia. perlu dijelaskan pula apa yang dimaksud dengan franchisor dan franchisee. • Franchisee atau penerima waralaba. adalah badan usaha atau perorangan yang memberikan hak kepada pihak lain untuk memanfaatkan dan atau menggunakan hak atas kekayaan intelektual atau penemuan atau ciri khas usaha yang dimilikinya. Daftar isi [sembunyikan] • 1 Franchisor dan franchisee • 2 Sejarah Waralaba • 3 Jenis waralaba • 4 Biaya waralaba • 5 Waralaba di Indonesia • 6 Tingkat pengembalian • 7 Lain-lain • 8 Referensi [sunting] Franchisor dan franchisee Selain pengertian waralaba. cari Waralaba (Inggris: Franchising. ensiklopedia bebas Langsung ke: navigasi. prosedur dan cara-cara yang telah ditetapkan sebelumnya dalam jangka waktu tertentu meliputi area tertentu. sistem. Sedangkan menurut Asosiasi Franchise Indonesia. [sunting] Sejarah Waralaba .Prancis: Franchise) untuk kejujuran atau kebebasan[1]) adalah hak-hak untuk menjual suatu produk atau jasa maupun layanan[2].

Gagasan mereka adalah membiarkan rekanan mereka untuk mandiri menggunakan nama yang sama. menyebabkan waralaba digemari sebagai suatu sistem bisnis diberbagai bidang usaha. General Motors Industry ditahun 1898[6]. mencapai 35 persen dari keseluruhan usaha ritel yang ada di AS. Kecenderungan ini dimulai pada tahun 1919 ketika A&W Root Beer membuka restoran cepat sajinya. pendiri Coca Cola[5]. makanan. John S Pemberton. Mc Donalds. AS. menurut sumber lain. Pemilik waralaba (franchisor) dalam menyeleksi calon mitra usahanya berpedoman pada keuntungan bersama. Pada tahun 1935. Namun. Dalam perkembangannya. AS Waralaba diperkenalkan pertama kali pada tahun 1850-an oleh Isaac Singer. yang mengikuti Singer kemudian bukanlah Coca Cola. Lyons melalui usahanya Wimpy and Golden Egg. tetapi dikendalikan oleh Western Union[7] serta persetujuan eksklusif antar pabrikan mobil dengan penjual[8]. namun dialah yang pertama kali memperkenalkan format bisnis waralaba ini di AS. persediaan. tidak berdasarkan SARA[10]. yang telah dioperasikan oleh berbagai perusahaan jalan kereta api. Howard Deering Johnson bekerjasama dengan Reginald Sprague untuk memonopoli usaha restoran modern. salah satu pewaralaba rumah makan siap saji terbesar di dunia Waralaba saat ini lebih didominasi oleh waralaba rumah makan siap saji[9]. Bisnis waralaba tidak mengenal diskriminasi. Kemudian.Perusahaan Coca cola di Atlanta. Sedangkan di Inggris. berkembangnya waralaba dirintis oleh J. caranya ini diikuti oleh pewaralaba lain yang lebih sukses. melainkan sebuah industri otomotif AS. sistem bisnis ini mengalami berbagai penyempurnaan terutama di tahun l950-an yang kemudian dikenal menjadi waralaba sebagai format bisnis (business format) atau sering pula disebut sebagai waralaba generasi kedua. pada tahun 60-an. Perkembangan sistem waralaba yang demikian pesat terutama di negara asalnya. Contoh lain di AS ialah sebuah sistem telegraf. pembuat mesin jahit Singer. logo dan bahkan membangun desain sebagai pertukaran dengan suatu pembayaran. Walaupun usahanya tersebut gagal. . ketika ingin meningkatkan distribusi penjualan mesin jahitnya.

[sunting] Waralaba di Indonesia Di Indonesia. Perkembangan waralaba di Indonesia. cenderung lebih disukai karena sistemnya lebih jelas. • Undang-undang No. Banyak orang masih skeptis dengan kepastian hukum terutama dalam bidang waralaba di Indonesia. dibayarkan pemegang waralaba setiap bulan dari laba operasional. 1 miliar. yaitu dengan dimulainya sistem pembelian lisensi plus. namun juga memiliki hak untuk memproduksi produknya[12] . dan dirasakan lebih bergengsi. pendidikan dan lain-lain. dimulai dari Rp. Perkembangan kedua dimulai pada tahun 1970-an. Besarnya ongkos royalti berkisar dari 5-15 persen dari penghasilan kotor. 10 juta hingga Rp. waralaba berkembang pesat. Biaya ini meliputi pengeluaran yang dikeluarkan oleh pemilik waralaba untuk membuat tempat usaha sesuai dengan spesifikasi franchisor dan ongkos penggunaan HAKI. merek sudah diterima diberbagai dunia. Lebih dari 10 persen biasanya adalah biaya yang dikeluarkan untuk pemasaran yang perlu dipertanggungjawabkan. [sunting] Biaya waralaba Biaya waralaba meliputi: • Ongkos awal. khususnya di bidang rumah makan siap saji sangat pesat. Karenanya.Kategori waralaba berbeda-beda antara lain : franchise dalam bentuk makanan. yaitu dengan munculnya dealer kendaraan bermotor melalui pembelian lisensi. Hal ini ini dimungkinkan karena para pengusaha kita yang berkedudukan sebagai penerima waralaba (franchisee) diwajibkan mengembangkan bisnisnya melalui master franchise yang diterimanya dengan . maka persyaratan utama yang harus dimiliki satu teritori adalah kepastian hukum yang mengikat baik bagi franchisor maupun franchisee. Tonggak kepastian hukum akan format waralaba di Indonesia dimulai pada tanggal 18 Juni 1997. 16 Tahun 1997 tentang Waralaba. kita dapat melihat bahwa di negara yang memiliki kepastian hukum yang jelas. • Peraturan Menteri Perindustrian dan Perdagangan RI No. Selanjutnya ketentuan-ketentuan lain yang mendukung kepastian hukum dalam format bisnis waralaba adalah sebagai berikut[13]: • Keputusan Menteri Perindustrian dan Perdagangan RI No. 31/MDAG/PER/8/2008 tentang Penyelenggaraan Waralaba • Undang-undang No. [sunting] Jenis waralaba Waralaba dapat dibagi menjadi dua: • Waralaba luar negeri. 14 Tahun 2001 tentang Paten. 30 Tahun 2000 tentang Rahasia Dagang. Hal ini terlihat dari semakin banyaknya payung hukum yang dapat melindungi bisnis waralaba tersebut. • Ongkos royalti. Ongkos royalti yang layak adalah 10 persen. • Undang-undang No. juga menjadi salah satu pilihan investasi untuk orang-orang yang ingin cepat menjadi pengusaha tetapi tidak memiliki pengetahuan cukup piranti awal dan kelanjutan usaha ini yang disediakan oleh pemilik waralaba. salah satu bentuk nya adalah [11] dan masih banyak lagi franchise yang berkembang di Indonesia ini. 15 Tahun 2001 tentang Merek. sistem waralaba mulai dikenal pada tahun 1950-an. PP No. 16 tahun 1997 tentang waralaba ini telah dicabut dan diganti dengan PP no 42 tahun 2007 tentang Waralaba. Agar waralaba dapat berkembang dengan pesat. 259/MPP/KEP/7/1997 Tanggal 30 Juli 1997 tentang Ketentuan Tata Cara Pelaksanaan Pendaftaran Usaha Waralaba. yaitu franchisee tidak sekedar menjadi penyalur. Namun saat ini kepastian hukum untuk berusaha dengan format bisnis waralaba jauh lebih baik dari sebelum tahun 1997. misalnya di AS dan Jepang. yaitu dengan dikeluarkannya Peraturan Pemerintah (PP) RI No. • Waralaba dalam negeri.

ILP. ITutorNet. Binus) . distribusi peralatan komputer ( Micronics Distribution ) . Info Franchise Expo ( Neo dan Majalah Franchise Indonesia). Sapo Oriental. Red Crispy. Townfor Kids) . Sinotif) . Kids2success . [sunting] Tingkat pengembalian Tingkat pengembalian yang layak dari sebuah waralaba adalah minimum 15 persen dari nilai. Papa Rons dan masih banyak merek lainnya).Primagama. • Perkembangan merek dan waralaba dalam negeri cukup pesat dan pada pameran pameran franchise di tanah air terlihat banyak merek merek nasional Indonesia bersaing dengan merek global dan regional. Hip Hop. Java NetCafe. Warnet / NetCafe (Multiplus. Veneta dll) . AFI (Asosiasi Franchise Indonesia). Pendidikan Bahasa Inggris (EF/English First. X4Print.Franchise License Expo Indonesia ( Panorama convex). The Bridge. Hans Consulting. WALI (Waralaba & License Indonesia). . Kantor Konsultan Solusi JSI . • Di bidang Telematika atau Information & Communication Technology . Ada beberapa asosiasi waralaba di Indonesia antara lain APWINDO (Asosiasi Pengusaha Waralaba Indonesia). pendidikan komputer (Widyaloka. AlfaMart) banyak menyebar ke pelosok kampung dan pemukiman padat penduduk. juga mulai diminati pada 3 tahun terakhir ini berkembang beberapa bidang waralaba seperti distribusi tinta printer refill/cartridge (Inke. • Waralaba berbentuk retail mini outlet (Indomaret. CFC. Yomart. Ada beberapa konsultan waralaba di Indonesia antara lain IFBM. • Yang juga menguntungkan adalah waralaba di bidang pendidikan (Science Buddies. suatu jaringan format bisnis waralaba akan terus berekspansi. Ada beberapa pameran Waralaba di Indonesia yang secara berkala mengadakan roadshow diberbagai daerah dan jangkauannya nasional antara lain International Franchise and Business Concept Expo (Dyandra). FT Consulting. [sunting] Lain-lain • Di Indonesia waralaba yang berkembang pesat dan masih sangat menguntungkan adalah waralaba di bidang makanan (Wong Solo. Direct English) dll. Dengan mempergunakan sistem piramida atau sistem sel.cara mencari atau menunjuk penerima waralaba lanjutan. dll. lebih menarik lagi terdapat Sekolah robot ( Robota Robotics School ). Ben WarG Consulting. Net Ezy) . JSI dan lain-lain. taman bermain (SuperKids) dan taman kanak-kanak(FastractKids.

and is used both as a noun and as a (transitive) verb. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business. For the concept of "franchising" in sports. Franchising is the practice of using another firm's successful business model. For the cable television franchise fee in the United States.from franc . search This article is about the business concept. The franchisor's success depends on the success of the franchisees. the franchise is an alternative to building 'chain stores' to distribute goods that avoids the investments and liability of a chain. A McDonald's franchise. the free encyclopedia Jump to: navigation. see Major professional sports leagues in the United States and Canada.meaning free. see Cable television franchise fee.Franchising From Wikipedia.[1] For the franchisor. . The word 'franchise' is of Anglo-French derivation .

765.250 . (convenience stores) |startup costs in 2010 $40.4 China o 3.[5] 1.$1. (28. have laws that explicitly regulate franchising.$84.7.1 percent of all private.2 Italy  3. Servpro (insurance and disaster restoration and cleaning) | startup costs in 2010 $102. generating $880.[2] Contents [hide] • 1 Overview • 2 Obligations of the parties • 3 Regulations o 3. there were 909.000 partners worldwide in 2004). 2.300 partners in 2010) 3.7. Great Clips (hair salons) | startup costs in 2010 $109.000 partners worldwide in 2004) 9.7.300 – $258.S.716.300 (22.4 percent of all private sector output. the USA is a leader in franchising.400 . motels at the time of the Great Depression.300 8.6 Kazakhstan o 3. China. listing tabulates[3] the early 2010 ranking of major franchises along with the number of sub-franchisees (or partners) from data available for 2004.700 (37.253 established franchised businesses.200 partners in 2004) 7. a position it has held since the 1930s when it used the approach for fast-food restaurants.6 United Kingdom o 3.427 .800 5. including the United States. 7-Eleven Inc.1 Australia o 3. and 4.7. (11.7.4 Russia  3.900 – $1.5 India o 3.[4] As can be seen from the names of the franchises.7. slightly later.000 . with the majority of all other countries having laws which have a direct or indirect impact on franchising.5 Spain  3.148.750 . H&R Block (tax preparation and now e-filing) | startup costs $26. Jani-King (commercial cleaning) | startup costs $11. McDonald's | startup costs in 2010. Dunkin' Donuts | startup costs in 2010 $537.3 Norway  3.500.Thirty three countries.$35.$161. food inns and.1 France  3.300.3 Brazil o 3. As of 2005.8 United States • 4 Social franchises • 5 Event franchising • 6 Home-based franchises • 7 See also • 8 References • 9 External links [edit] Overview The following U.000 – $15. and Australia.$203.842. $995.200 partners in 2004) 4.050.150 .9 billion of output and accounting for 8.094 (11.7 Europe  3.000 6. non-farm jobs. Hampton Inns & Suites (midprice hotels) |startup costs in 2010 $3. Subway (sandwiches and salads) | startup costs $84.$775.2 New Zealand o 3. This amounts to 11 million jobs.

hospitals. After the brand and formula are carefully designed and properly executed.10. Therefore. There is a great deal of standardization required. Thus. and serves a specific territory or geographical area surrounding its location. not the purchase of a business for the purpose of ownership. there are proprietary service marks which may be copyrighted. Two important payments are made to a franchisor: (a) a royalty for the trademark and (b) reimbursement for the training and advisory services given to the franchisee. It should be recognized[citation needed] that franchising is one of the only means available to access venture investment capital without the need to give up control of the operation of the chain and build a distribution system for servicing it. A franchise can be exclusive.$7. non-exclusive or 'sole and exclusive'. and corresponding regulations.065 Mid-sized franchises like restaurants. A franchise usually lasts for a fixed time period (broken down into shorter periods.[citation needed] Besides the trademark.615. franchisor fees are typically based on 'gross revenue from sales' and not on profits realized. logos and trademark in a prominent place. with premature cancellations or terminations of most contracts bearing serious consequences for franchisees. One franchisee may manage several such locations. . The franchisee is obligated to carry out the services for which the trademark has been made prominent or famous. Agreements typically last from five to thirty years.835. The place of service has to bear the franchisor's signs. Franchisor rules imposed by the franchising authority are usually very strict in the USA and most other countries need to study them carefully to protect small or start-up franchisee in their own countries.823 . It is classified as a wasting asset due to the finite term of the license. [edit] Obligations of the parties Each party to a franchise has several interests to protect. (August 2010) Although franchisor revenues and profit may be listed in a franchise disclosure document (FDD). These two fees may be combined in a single 'management' fee. as they would be in retailing. which depends on how intensively the franchisee 'works' the franchise. A fee for "disclosure" is separate and is always a "front-end fee". etc. The service has to be in accordance with the pattern followed by the franchisor in the successful franchise operations. which are discussed further under technological alliances. According to the International Franchise Association approximately 4% of all businesses in the United States are franchisee-worked. spas. See Remuneration. The franchisor is involved in securing protection for the trademark. A franchise is merely a temporary business investment involving renting or leasing an opportunity. The uniforms worn by the staff of the franchisee have to be of a particular design and colour. MiniMarkets (convenience store and gas station) | startup costs in 2010 $1. Franchise brokers help franchisors find appropriate franchisees. This section requires expansion. which each require renewal). There are also large franchises like hotels. controlling the business concept and securing know-how. gasoline stations and trucking stations involve substantial investment and require all the attention of a businessperson. training and other support services are commonly made available by the franchisor. Various tangibles and intangibles such as national or international advertising. franchisors are able to sell franchises and expand rapidly across countries and continents using the capital and resources of their franchisees while reducing their own risk. There are also main 'master franchisors' who obtain the rights to sub-franchise in a territory. no laws require an estimate of franchisee profitability. franchisees are not in full control of the business.

3% from 2009 to 2010. The code also regulates the content of franchise agreements.[10] There is no separate law covering franchises. the total number of franchised units increased by 5. The start-up costs and working capital must be known before the license is granted. a mandatory code of conduct concluded under the Trade Practices Act 1974.[6] Often the training period . The training period must be adequate.[8] Some experts have warned that any pressure to increase the regulation of the franchising sector could make it a less attractive means of doing business. The franchisee must be seen as an independent merchant. sales documents and email access. Contracts are renewable at the sole option of the franchisor. If the franchisor requires purchase from his stores. can be readily identified by the trademark if its raw materials come from a particular supplier.[7] Franchise contracts tend to be unilateral contracts in favor of the franchisor. There must be assurance that additional licensees will not crowd the "territory" if the franchise is worked according to plan. Also. for example in relation to marketing funds. termination. and that they have not been promised success or profits by the franchisor. Many franchisors have set up corporate universities to train staff online.. The federal government is currently considering recommended changes to the Code of Conduct. Despite (or because of) the recession. for example.A service can be successful if equipment and supplies are purchased at a fair price from the franchisor or sources recommended by the franchisor. [edit] Regulations [edit] Australia In Australia. who is generally protected from lawsuits from their franchisees because of the non-negotiable contracts that require franchisees to acknowledge. He must be protected by the franchisor from any trademark infringement by third parties.[1] So too the purchase of uniforms of personnel. franchise agreements carry no guarantees or warranties and the franchisee has little or no recourse to legal intervention in the event of a dispute. A franchise attorney is required to assist the franchisee during negotiations. but in low-cost franchises it may be considered expensive. signs. so they are covered by normal commercial law. and the franchisee has to learn on his own from instruction manuals. franchising is regulated by the "Franchising Code of Conduct". it may come under anti-trust legislation or equivalent laws of other countries. a cooling-off period.is too short in cases where it is necessary to operate complicated equipment. etc. A coffee brew. "Opportunity not Opportunism: Improving conduct in Australian Franchising" tabled by a Parliamentary inquiry into franchising on 4 December 2008. This code requires franchisors to produce a disclosure document which must be given to a prospective franchisee at least 14 days before the franchise agreement is entered into. as well as the franchise sites.[9] [edit] New Zealand New Zealand is served by around 423 franchise systems operating 450 brands. This functions very well in New Zealand and . The fees must be fully disclosed and there should not be any hidden fees. He and the franchisor must develop a marketing or business plan. The franchisee must carefully negotiate the license. giving it the highest proportion of franchises per capita in the world. that they are buying the franchise knowing that there is risk. These are contained in the report. if they are owned or controlled by the franchisor. in effect. Most franchisors require franchisees to sign agreements that mandate where and under what law any dispute would be litigated. This is in addition to providing literature.the costs of which are in great part covered by the initial fee . and the resolution of disputes by mediation.

compared to more than 540 in the United States.[21] "Measures for the Administration of Commercial Franchise". 1994) defines the franchise as a system in which the franchisor licenses the franchisee. The Franchise Law does not distinguish between Brazilian and foreign franchisors.includes law as it applies to contracts. Starbucks followed a little later. Indispensable documents are a Statement of Delivery (of disclosure documentation) and a Certification of Recording (INPI).[12] A case of fraud in 2007 perpetrated by a former master franchisee of the country's largest franchise system[13] led to a review of the need for franchise law by the Ministry of Economic Development. This contains many provisions similar to those of the Australian Franchising Code of Practice legislation. as at their forming the franchise law was not explicit. Pizza Hut. The provision of a "Franchise Offer Circular" or disclosure document is mandatory before execution of agreement and is valid for all of the Brazilian territory.[22] Previous legislation (1997) made no . Page reference in franchising in this country: Guide of Franchising . Around 11 percent of this total are foreign-based franchisors. The latter is necessary for payments.[19] [edit] Brazil In 2008.Guia do Franchising (http://www. which seeks foreign franchise growth. For example. although it should be noted that only around a third of all franchises are members of the association and therefore bound by the code. The Brazilian Franchise Law (Law No. TGIF.[15] This decision was criticised by the Opposition. which leads to refunds and serious payments for damages. But total franchising is only 3% of retail trade. Each system in China has an average of 43 outlets.[11] The Franchise Association of New Zealand introduced a self-regulatory Code of Practice for its members in 1996.guiadofranchising.[14] The New Zealand Government decided there was no case for franchise-specific legislation at this time. making it one of the largest countries in the world in terms of number of units. restrictive trade practices. All sums amounts may not be convertible into foreign currency.013 franchises[20] with more than 62. Failure to disclose voids the agreement. there are 2600 brands in some 200. Wal-mart. for a payment. the right to use a trademark/patent along with the right to distribute products or services on an exclusive or semi-exclusive basis.com. The Registration accomplishes three things: * It make the agreement effective against third parties * It permits the remittance of payments * It qualifies the franchisee for tax deductions. and the review process was questioned by a leading academic. there were about 1. KFC was the most significant foreign entry in 1987 and is widespread [21] Many franchises are in fact joint-ventures. 8955 of December 15.500 outlets. to avoid translation. intellectual property and the law of misleading or deceptive conduct.[17] The Franchise Association originally supported the positive regulation of the franchise sector[18] but its eventual submission to the review was in favour of the status quo – selfregulation. as long as the Brazilian party knows English fluently and expressly acknowledges that fact.000 retail markets. Certification may also mean compliance with Brazil's antitrust legislation. McDonald's is a joint venture. The National Institute of Industrial Property (INPI) is the registering authority. The year 2005 saw the birth of an updated franchise law.[16] which had initiated the review when in power. Together.br) [edit] China China has the most franchises in the world but the scale of their operations is relatively small. Parties to international franchising may decide to adopt the English language for the document.

The law comprises 42 articles and 8 chapters. the franchisee is prohibited from continuing to use the franchisor's marks. including number. • The franchise agreement must have a minimum three-year term. among which are: • The standard franchise agreement. it must be refunded on termination of the franchise agreement.specific inclusion of foreign investors. and the terms of supply • The training franchisees will receive • Information about the trademarks. locations. upon termination. [edit] India The franchising of goods and services foreign to India is in its infancy. The laws are applicable if there are transactions involving a trademark combined with payments with many obligations on the franchisor. one of the biggest franchising markets because of its large middle-class of 300 million who are not reticent about spending and because the population is entrepreneurial in character.[25] . • The ability to train the Chinese personnel and provide • Long-term operational guidance. Among the franchisor obligations are: • The FIE (foreign-invested enterprise) franchisor must be registered by the regulator • The franchisor (or its subsidiary) must have operated at least operated two company-owned franchises in China (revised to "anywhere")for more than 12 months ("the two-store. Today the franchise law is much clearer by virtue of the 2007 law. working manual and working capital requirements.[24] India is. (see Demographics of India) McDonald's is a success story despite its fare's differing from that of the rest of the world. and ample ability to supply materials.including registration. The disclosure has to take place 20 days in advance. The franchisor must meet a list of requirements for registration. Among other provisions: • The franchisor is liable for certain actions of its suppliers • Monetary and other penalties apply for infractions of the regulations. It has to contain: • Details of the franchisor's experience in the franchised business with scope of business • Identification of the franchisor's principal officers • Litigation of the franchisor during the past five years • Full details about all franchise fees • The amount of a franchisee's initial investment • A list of the goods or services the franchisor can supply. usage. and operational results. one-year" rule) • The franchisor must disclosure any information requested by the franchisee • Cross-border franchising. however. Other elements of this legislation are: • The franchisee's confidentiality obligations continue indefinitely after termination or expiration of the franchise agreement • If the franchisee has paid a deposit to the franchisor.[23] a revision of the 2005 law. with some caveats. and • An audited financial report and tax information (for an unspecified period of time). and litigation • Demonstration of the franchisor's capabilities to provide training and guidance • Statistics about existing units. is possible (2007 law). In a highly diversified society. and the percentage of franchises that have been terminated. • A track-record of operations. The first International Exhibition was only held in 2009.

firms involved in franchising in France.[26] Kazakhstan franchising began with the emergence of a "Coca-Cola" factory. which provide for both specific enforcement of covenants in a contract and remedies in the form of damages for breach of contract. yet McDonald's and Century 21 are found everywhere. d) A list of all other franchisees currently in the network. The plant was built in 1994. including bankers. franchise agreements are covered under two standard commercial laws: the Contract Act 1872 and the Specific Relief Act 1963.S. There are about 300 franchise systems and the number of franchised outlets approaches 2000. Hilton. Legal consultation is needed before entering and finalizing the agreement(s). All formal disclosure countries are required to furnish "Contract Summaries" highlighting: • The object of the contract • The rights and obligations of the parties • The financial conditions • The term of the contract. Combined with Decree No. and Pizza Hut. Marriott. . Romania (1997). Other brands that are also present in Kazakhstan through the franchise system include Pepsi. which is not so significant a factor in the USA. or the master franchisor. The law applies to "exclusive or quasi-exclusive territory". as local populations tend to be homogeneous. Kazakhstan is the leader in Central Asia in the franchising market. The market is considered difficult for outside franchisors because of cultural characteristics. but the industry is largely unregulated. The specific and important disclosures to be made are [29]: a) The date of the founding of the franchisor's enterprise and a summary of its business history and all information necessary to assess the business experience of the franchisor. the European Union has not adopted a uniform franchise disclosure policy. Cultural factors are also relevant. plays an important role. trademark or trade name or other business arrangements. Intercontinental. They are France (1989). The Loi Doubin Law of 1989 was the first European franchise disclosure law. opened to sublicense a Turkish licensor of the same brand. dating back to the 1930s. Only five countries in Europe have adopted pre-sale disclosure obligations. [edit] France France is one of Europe's largest markets. This is where the franchise broker. [edit] Kazakhstan In Kazakhstan franchise turnover for 2010 is 1 billion US$ dollars per year. [edit] Europe Franchising has grown rapidly in Europe in recent years. c) The franchisor's financial statements for the previous two years. Growth came in the 1970s. it has a long history of franchising. Italy (2004) and Belgium (2005). although the decree also applies to any person who provides to another person a corporate name. There is a special law on franchising which went into effect in 2002. 91-337.So far. it regulates disclosure.[28] There are no government agencies regulating franchises. The disclosure document must be delivered at least 20 days before the execution of the agreement or any payments are made. There are some 30 U. Spain (1996). b) A description of the local market for the goods or services. Most often one of the principal tasks in Europe is to find retail space. Similar to the United States.[27] The Code of Ethics of the European Franchising Federation is self-enforced in seventeen European states where their national franchise associations are members of the European Franchise Federation (EFF) and the International Institute for the Unification of Private Law UNIDROIT. Unlike the United States.

rather than pursue legal remedies. The Spanish Retail Trading Act regulates franchising. there was some uncertainty whether any breach of the provisions of the Doubin law would enable the franchisee to walk away from the contract. franchising is encouraged.[32] [edit] Spain The legal definition of franchising in Spain is an activity in which an undertaking. [edit] Russia In Russia. b) A list of franchisees currently operating in the franchise system in Italy. and f) The conditions for renewal. copies of franchisor's balance sheets for the previous three years. and franchisors cannot set standards or limits on the prices of the franchisee's goods. This may also apply to vertical cooperation such as franchising. or since start-up if that period is shorter.[33] The contents of the franchise must include. The franchisor must disclose: a) A summary of the franchise activities and operations. the franchisor. the right to exploit an owned system to commercialize products or services already exploited by the franchisor with enough success and experience. whether by termination or non-renewal. In addition.e) All franchisees who have left the network during the preceding year. termination and the scope of exclusivity. [30] Dispute settlement features are only incorporated in some European countries. limit or diminish the competition. Initially. the franchisee. c) Year-by-year details of the changes in the number of franchisees for the previous three years in Italy. Enforcement of laws and resolution of contractual disputes is a problem:[citation needed] Dunkin' Donuts chose to terminate its contract with Russian franchisees who were selling vodka and meat patties contrary to their contracts. the right to market goods and services under particular trademarks. in exchange for a consideration. for a specific market and in exchange for financial compensation (either direct. franchise agreements are invalid unless written and registered. However. the French supreme court (Cour de cassation) eventually ruled that agreements should only be annulled where missing or incorrect information affected the decision of the franchisee to enter into the agreement. the Norwegian Competition Act section 10 prohibits cooperation which may prevent. and e) If requested by the franchisee. grants to another party. articles dictate the form and content of the franchise agreement and define the documents that must be made available 30 days prior to execution. assignment. [edit] Norway There are no specific laws regulating franchising in Norway. However. and . under chapter 54 of the Civil Code (passed 1996). • The communication by the franchisor to the franchise of certain technical knowledge or substantial and singular know-how that has to be owned by the franchisor. d) A summary of any court or arbitral proceedings in Italy related to the franchise system. The burden of proof is on the franchisee. By not being rigorous. at least: • The use of a common name or brand or any other intellectual property right and a uniform presentation of the premises or the transport means included in the agreement. indirect or both). [edit] Italy Under Italian law franchise [31] is defined as an arrangement between two financially independent parties where a franchisee is granted.

According to the regulation in force in 2010 this obligation has to be met within three months after the start of its activities in Spain. and many businesses that refer to themselves as franchisors do not conform to these rules. For example. The Minister of Industry indicated that if due diligence were performed by the investors and the banks. • Justification of ownership or license for use of any trademark or similar sign and judicial claims affecting them as well as the duration of the license. etc.Technical or commercial assistance or both. Interstate Highway System. provided by the franchisor to the franchisee during the agreement. The Minister of Industry. In Spain. • Contents and characteristics of the franchise and its exploitation. franchises are subject to the same laws that govern other businesses. • Experience of the franchisor. The growth in franchising accelerated in the 1930s when such chains as Howard Johnson's started to franchise motels. Franchisors (with some exceptions) should be registered in the Franchisors’ Register and provide the requested information. • Structure and extension of the network in Spain. franchise agreements are produced under regular contract law and do not have to conform to any further legislation or guidelines.S. hearings were held in the UK Parliament concerning citizeninitiated petitions for special regulation of franchising by the government of the UK due to losses incurred by citizens who had invested in franchises.[35] There is some self-regulation through the British Franchise Association (BFA) and the UK Franchise Organisation.[who?] On 22 May 2007. who made improvements to an existing model of a sewing machine in the 1850s.[34] [edit] United Kingdom In the United Kingdom there are no franchise-specific laws. • .[citation needed] There are several people and organisations in the industry calling for the creation of a framework to help reduce the number of "cowboy" franchises and help the industry clean up its image.[38] Modern franchising came to prominence with the rise of franchise-based food service establishments. • Essential elements of the franchise agreement. However. supplies. followed later by Coca-Cola. there are many franchise businesses which do not become members. conducted hearings but resisted any government regulation of franchising with the advice that government regulation of franchising might lull the public into a false sense of security. Massachusetts Howard Johnson's restaurant founded in the late 1920s.[36] [edit] United States Isaac Singer. began one of the first franchising efforts in the United States. This information has to be true and not misleading and include: • Identification of the franchisor. Margaret Hodge. Western Union. Howard Deering Johnson established the first modern restaurant franchise based on his successful Quincy. logo and even building design in exchange for a fee. without prejudice to any supervision faculty to which the parties could freely agree in the contract.[37] and by agreements between automobile manufacturers and dealers. the franchisor submits the disclosure information 20 days prior to signing the agreement or prior to any payment made by the franchisee to the franchisor.[41] The 1950s saw a boom in franchise chains in conjunction with the development of the U. In 1932. food.[39][40] The idea was to let independent operators use the same name. Franchisors are to disclose to the potential franchisee specific information in writing. • General description of the sector in which the franchise operates. the current laws governing business contracts in the UK offered sufficient protection for the public and the banks.

Mary's Place Hotel in Edinburgh and the Hotel Tritone in Trieste. Individual states may require the FDD to contain their own specific requirements. The majority of franchisors have inserted mandatory arbitration clauses into their agreements with their franchisees. and generally requires audited financial statements from the franchisor in a particular format.S. An example of event franchising is the World Economic Forum.In the United States. estimate of total franchise revenues and franchisor profitability.[43] As in classic franchising. such as soap making. concept and format of the event. aquarium maintenance. event franchising is built on precisely copying successful events.S. retaining the original brand (logo). the Federal Trade Commission has oversight of franchising. The final agreement is always a negotiated document setting forth fees and other terms. rather than the U. etc. The FTC administrates oversight via the FTC Franchise Rule. When The Music Stops is an example of an events franchise in the UK. wholefood retailing.S. only that provided by the franchisor can be depended upon. Whereas elements of the disclosure may be available from third parties. There is no federal registry of franchises or any federal filing requirements for information. except in some circumstances. addresses and telephone numbers of the franchisees in the licensed territory (who may be contacted and consulted before negotiations). mission. Home-based franchises are becoming popular as they are considered to be an easy way to start a business as . The U. which has regional event franchisees in China. [edit] Home-based franchises The franchising or duplication of another firm's successful home-based business model is referred to as a home-based franchise. also known as the Davos forum. Supreme Court has dealt with. the agreement may take the shape of a business format franchise . Franchise Disclosure Document (FDD) is lengthy (300-700 pp +) and detailed (see Uniform Franchise Offering Circular (UFOC) for elements of disclosure). Likewise. Where the franchisor has many partners. and hotel operation have been identified as suitable for adoption by social firms employing disabled and disadvantaged people. but the requirements in state disclosure documents must be in compliance with the federal rule that governs federal regulatory policy. Social franchising also refers to a technique used by governments and aid donors to provide essential clinical health services in the developing world. such as where a franchisor is new. [edit] Social franchises In recent years. Securities and Exchange Commission. the idea of franchising has been picked up by the social enterprise sector. A number of business ideas. some of which the U. Latin America. the alter-globalist World Social Forum has launched many national events. which hopes to simplify and expedite the process of setting up new businesses. in this case.an agreement that is identical for all franchisees. a steadily growing chain of some 50 neighborhood supermarkets in Germany. There is no private right of action of action under the FTC rule for franchisor violation of the rule. It must include such data as the names. States are the primary collectors of data on franchising companies and enforce laws and regulations regarding their presence and their spread in their jurisdictions. The most successful example is probably the CAP Markets. [edit] Event franchising Event franchising is the duplication of public events in other geographical areas. Other examples are the St. but fifteen or more of the states have passed statutes that provide this right of action to franchisees when fraud can be proven under these special statutes. running speed dating and singles events.[42] The (FTC) Federal Trade Commission requires that the franchisee be furnished with a Franchise Disclosure Document (FDD) by the franchisor at least fourteen days before money changes hands or a franchise agreement is signed.

"[46] . you will likely need a separate office and a dedicated time where you will not be interrupted. It may cost little to start a home-based franchise. but experts say that "the work is no less hard. "but having a home based business doesn't offer any guarantees as you will encounter many challenges you'll have to learn to overcome."[44] According to America's Best Franchises. If your home is too small and you are crammed in with noisy children.they may provide a low barrier for entry into entrepreneurship. there are many benefits to choosing to become a home-based franchisee. For example. it will indeed make it more difficult for your business to work.[45] There are some important factors that you will have to take into account if you choose a home based franchise.