IMPLICATIONS OF FRANCHISE AGREEMENTS FOR DEFAULT BY FRANCHISEES CASE STUDY : DECISION NUMBER 1064K/Pdt/2020

Abstract

This Audy ainu; lo analyze the raf"d gm"1h of the franch,se bus- in lndor><$111, wh1Ch hao prompted ti... S"''ernrnent to regulate and pn>h>CI the leg.ol relallon,,lup betw""n fr,mdusors and (ranch.,...... through vfflous regulations, including Go,....-nmcnt 11:egulalion Number 42of'}J)07 and the Mini.try of Trade Regula hon Number 71 ol 2019. A dispute C"a5" between l'T M"5alon lntemaliona.J a1 the Erandusor 11nd R.atnasan Luk,taningrum as the franch.- h,ghhghls the challenge5 in lmplementing francluw agr;,ernents in lndoneQa. This n,search '"'"".U ronduct.i,d quaht.ot..-ely with a case study analY5tl. The reM'MCh method u...d is empirklll juridi<"lll. The <'aw study ana.JY51S Mnd literature ""'iew are de.cribed in th111 ...........,h The main challenge5 in franch- ag,._ls indude une!Hr mntra.ct d11uses, non..,..mplianct! with regulallons, �k of trust, and operallonal difficult- in implemen11ns franclusor st.i.ndards The 1mf'i"d ol these challenga 11,dudeo law5uit1, cnntracl temunat,011, and damage lo bo.mnew n,put.ohon. Based on civd law princ,pi,... such IIS cm_,,.ua]ism, (r.,..Jom of contract, and good fa,th, th� Audy emphasU.a ti,., imptttance of compl.ia- ,..,th n,,gulations and lransr,>renry in the imrlementallon ol franclu,e agreements lo "'"-'"le JUSl!<,,t! and busi""" sustain.ab.hty. n... study condud"" that harmonizing regulaho.... •nd simpW")'lng administrative rroc,r1<"" are n� lo address the ch,o.tlt•nges in fr•nchise agn.-em<...,tl on lndone,,1a wlule promotmg he.ilthy and compet,li,•• franch1$1! sector growth.