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Journal articles on the topic 'Franchise'
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1
Fernández-Monroy, Margarita, Josefa D. Martín-Santana, and Inmaculada Galván-Sánchez. "Building successful franchise partnerships: the importance of communication and trust." Management Decision 56, no. 5 (May 14, 2018): 1051–64. http://dx.doi.org/10.1108/md-07-2016-0528.
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Purpose The purpose of this paper is to propose a conceptual model for building successful franchise partnerships. The model examines the influence of communication and trust on satisfaction and performance in franchise partnerships, considering that franchises are based on franchisor-franchisee and franchisor-supplier relationships. Design/methodology/approach The unit of analysis refers to the relationships that the franchisor maintains with the franchisees and the main supplier, from the franchisor’s perspective. A mail survey of 592 franchises was conducted by means of a structured, self-administered questionnaire for data collection. A total of 98 valid questionnaires were received and analyzed using structural equation modeling. Findings Results indicate that communication between franchise partners is related to satisfaction through trust. In fact, communication is a major precursor of trust. Findings also show the direct influence of trust on satisfaction in both relationships. Finally, results evidence that developing satisfactory relationships between partners improves strategic and operational franchise outcomes. Research limitations/implications The use of the questionnaire limits the approach to information gathering. In addition, the study focused on the franchisor’s perspective of the relationships and it would be interesting to include other partners’ opinions. Further, research should broaden the study scope to include other factors of franchise partnerships. Practical implications This study provides franchisors with guidelines to develop satisfactory relationships. It recommends that franchisors design adequate programs to create, maintain, and enhance franchise partnerships, and also to improve a trust-based culture. Originality/value The analysis is conducted taking into consideration the franchisor-franchisee relationship and the franchisor-supplier relationship. Measurement scales are developed and validated for both relationships.
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Sanny, Lim. "Investigating the Franchisee’s Performance: Study of International Education Frachising in Indonesia." Advanced Science Letters 21, no. 4 (April 1, 2015): 1031–34. http://dx.doi.org/10.1166/asl.2015.5976.
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The purpose of this study was to investigate the factors required by the franchisees in improving their performance. The study also reveals the influence of quality management for franchisee satisfaction and performance. In addition, this study also examines the effect of Entrepreneur Orientation as a moderator variable between satisfactions with performance. This research was conducted at the International Franchise Education in Indonesia. The online survey conducted on 200 franchises and 72 data obtained can be processed. Analysis of the data using Warp PLS 3.0, shows that relational quality greatly affects quality management between the franchisor and franchisee compared to transactional quality. This study also revealed that the success of the franchise business, a franchisee needs to feel satisfied with the quality management of the franchisor; the franchisee can thus have a good performance. This study also showed that a franchisee which has the orientation Employers will be able to produce a good performance, if the franchisee has a good relationship with the franchisor. Nevertheless entrepreneurial orientation factor does not directly affect the franchisee performance.
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Prasetyo, Stephanie Patricia, and Urbaniasi Urbaniasi. "Aspects of Legal Protection for Franchisees Associated with the Franchise Agreement." QISTINA: Jurnal Multidisiplin Indonesia 2, no. 2 (December 1, 2023): 1065–72. http://dx.doi.org/10.57235/qistina.v2i2.880.
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Franchising as a business concept regarding the granting of the use of intellectual property rights by the franchisor to the franchisee is a legal relationship between the franchisor and the franchisee which is regulated in a franchise agreement. The purpose of this article is to analyze aspects of legal protection for franchisees related to franchise agreements and to analyze legal sanctions against franchisors who break the agreement unilaterally. The research method is in the form of normative law whose implementation is focused on secondary data collection (Library Materials) covering primary legal materials such as laws and regulations, primary legal materials such as articles, books and so on. This research is descriptive in nature. By using a qualitative approach/paradigm. The data is processed and analyzed qualitatively using deductive logic. The franchisor is the licenser to the franchisee to market goods and services on behalf of the franchisor in a certain area and period of time. The franchisor assists the franchisee in its distribution, in return the franchisee pays an initial fee and royalties. The franchisor can determine the contents of the agreement and terminate the agreement unilaterally with the franchisee for the agreement that has been agreed upon, but termination of this franchise agreement can result in default, because it causes losses to the franchisee and it is the franchisor's obligation to pay compensation. Legal protection for the parties in the implementation of the franchise agreement is an important aspect. The form of legal protection for franchisees in franchise agreements is contained in Government Regulation Number 42 of 2007 concerning Franchising in the provisions of Article 5 letter (k) which stipulates that the franchise agreement establishes procedures for extending, terminating and terminating the agreement. Thus the franchisor cannot terminate the agreement unilaterally at any time, the franchisor must comply with the PP on Franchising and in accordance with the Civil Code.
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Saputro, Wahyu Hidayat, Taqiyuddin Kadir, and Yudha Cahya Kumala. "PERLINDUNGAN HUKUM BAGI PENERIMA WARALABA TERHADAP PERUBAHAN PRODUK SECARA SEPIHAK." SENTRI: Jurnal Riset Ilmiah 3, no. 2 (February 6, 2024): 978–87. http://dx.doi.org/10.55681/sentri.v3i2.2317.
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The development of the business world penetrates the boundaries of space, time and territory of a country. One of the breakthroughs made by business people is business development through a franchise system, which in Indonesia is termed a franchise. Republic of Indonesia government regulation no. 42 of 2007 concerning franchising provides a definition of a franchise as a special right owned by an individual or business entity to a business system with business characteristics in order to market goods and/or services that have been proven successful and can be utilized or used by other parties based on a franchise agreement. In Indonesia, the legal regulations regarding franchising are not yet complete, considering that regulation through law has not been touched by the government. This is necessary to prevent franchise business actors from unwanted losses due to the incomplete legal instruments that protect them. This research raises the issue of what are the legal consequences of franchise agreements in the event of unilateral changes to franchise products by the franchisor and what is the legal protection for franchisees? for unilateral changes to franchise products by the franchisor. By using two legal theories as analysis tools, namely the legal protection theory from Satjipto Rahardjo and the legal consequences theory from Soeroso. The method used in this research is a normative juridical research method, namely legal research carried out by examining library materials or secondary data only. The research approaches used are a statutory approach, a case approach, a conceptual approach, an analytical approach and techniques for collecting legal materials by identifying and inventorying positive legal materials, literature. books, journals and other source materials, the technique for analyzing legal materials is carried out using legal interpretation (interpretation), systematic interpretation and methods of analogous legal construction, legal refinement construction (rechtsverfijning) and a contrary argument. The legal consequences of a franchise agreement in the event of a unilateral change to the franchise product by the franchisor, is the disappearance of the legal situation and relationship between the franchiser and the franchisee due to the franchiser's default which has implications for the franchisee experiencing losses due to not providing products, tools and materials for the franchise object. as is the classification that has been agreed. Legal protection for franchisees for unilateral changes to franchise products by the franchisor will be better protected if the Franchise Agreement regulates specific protection of the suitability of the franchise object, and the franchise agreement is not made standardly by the franchisor but is formulated together with the franchisee. . Because standard agreements are more susceptible to taking sides for the unilateral benefit of the agreement maker.
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Punjatewakupt, Piyawong, and Rapeepat Manasoontorn. "DETERMINANTS OF SUCCESS FOR SELF-SERVICE LAUNDRY FRANCHISES IN SAMUT SAKHON: A STUDY OF CRITICAL FACTORS, FRANCHISOR-FRANCHISEE RELATIONSHIPS, AND RESOURCE SCARCITY THEORY." EUrASEANs: journal on global socio-economic dynamics, no. 5(42) (September 30, 2023): 265–76. http://dx.doi.org/10.35678/2539-5645.5(42).2023.265-276.
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The self-service laundry industry has witnessed significant growth and popularity, with self-service laundry franchises emerging as a lucrative investment option. This research investigates the critical success factors (CSFs) and resource scarcity theory that influence the success of self-service laundry franchises in Samut Sakhon, Thailand. The study employs a qualitative approach, conducting in-depth interviews with 25 franchisees operating in the region.
The findings reveal key CSFs that significantly impact franchise success, including strategic location selection, equipment quality and maintenance, competitive pricing, effective marketing strategies, outstanding customer service, and hygiene standards. The franchisor-franchisee relationship, characterized by mutual support, open communication, and shared values, is also found to play a crucial role in franchise performance. Moreover, resource scarcity theory influences franchisee decision-making, providing access to established brands, operational expertise, and technology. Franchisors' resources, such as training, brand recognition, and marketing support, synergistically combine with franchisee resources to enhance overall performance.
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Kim, Seung Beom, and Kanghwa Choi. "Bridging the Operational Efficiency Differences between Franchisors and Franchisees: A Metafrontier Approach." Processes 10, no. 10 (October 7, 2022): 2021. http://dx.doi.org/10.3390/pr10102021.
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A franchise business is a contractual relationship in which the franchisor and franchisee should cooperate to promote sustainable growth of their franchise entities. However, it is still unclear whether the relationship between franchisees and franchisors is a principal–agent or a business partner sharing a business goal. Thus, this study is a first attempt to investigate the relationship between franchisees and franchises using metafrontier and bootstrap DEA from the perspective of efficiency. We measured the efficiency of coffee franchises in Korea, which have grown rapidly in recent years despite the COVID-19 pandemic. Based on the bootstrap DEA results, there was a statistically significant difference in efficiency between franchisors and franchisees under the variable return-to-scale assumption. While the main cause of inefficiency in premium coffee chains is attributed to scale inefficiency, most franchisees have pure technological inefficiency. Thus, coffee franchisees can improve the operational efficiency by adjusting their business scale and reallocating service resources. This study demonstrates tailored operational plans to improve the operational efficiency of premium and mainstream coffee franchises and offers strategic initiatives to decrease the difference in efficiency between franchisors and franchisees.
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Noor, Tajuddin. "THE COMPARATIVE LAW OF FRANCHISE AGREEMENTS IN REALIZING PROTECTION BETWEEN PARTIES." Jurnal Pembaharuan Hukum 10, no. 2 (August 31, 2023): 304. http://dx.doi.org/10.26532/jph.v10i2.33355.
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Franchising as a business concept regarding the granting of the use of intellectual property rights and operational activity systems by franchisors to franchisees is a legal relationship between franchisors and franchisees regulated in a franchise agreement. The purpose of this research is to analyze the Regulations regarding franchising in Indonesia and Regulations regarding franchising in other countries to compare arrangements between Indonesia and other countries. This legal research uses normative juridical research methods. The approach used is a comparative approach that involves researcher activities that begin with identifying the effect of one variable on another. franchise is a relationship based on a contract between the franchisor and the franchisee. Franchisees operate using trade names, formats, or procedures owned and controlled by the franchisor. Legal regulations in other countries often provide global trademark protection, allowing trademark owners to protect their trademarks in several countries. In Indonesian legislation, the legal protection of franchises is limited to the territory of the Republic of Indonesia.
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DERMONDE, MATHEUS, and BRUNO BRANDÃO FISCHER. "BRAZILIAN FRANCHISE STARTUPS AND THE COVID-19 CRISIS: ORGANIZATIONAL STRUCTURE AND ADAPTION CAPABILITIES." Revista Alcance 28, no. 3(Set/Dez) (August 31, 2021): 392–407. http://dx.doi.org/10.14210/alcance.v28n3(set/dez).p392-407.
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Purpose – The purpose of this study is to understand how franchise startups have been facing the crisis caused by COVID-19, with greater emphasis on the effects of the franchising decision on the survival of this type of business during the crisis period.
Design/methodology/approach – This is a qualitative research, conducted through multiple-case studies on four Brazilian startups that operate through franchised units. Data were collected through online interviews with founders and managers of the franchisee, complemented with information obtained from the companies' websites/social media and articles published in business magazines. The technique of content analysis was used.
Findings – We found that franchise startups can operate through conventional franchises or micro-franchises. In both cases, we found no reduction in the agility or flexibility of these businesses. Thus, within a crisis context, resilience allows the franchisor to gain greater advantages from its franchisees, if it opts for the conventional franchise model.
Originality – This research addresses the intersection between two business models: startups and franchises. It contributes to the understanding of both areas, as well as the effects of a business model in a crisis context.
Limitations/implications – This is a study conducted with a small number of cases within a similar context. The main implications of this research are the formulation of a set of propositions about the startup franchising process and the effects of a crisis for companies that adopt this operating model, and a descriptive diagram of this process.
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Coiquaud, Urwana, and Isabelle Martin. "Entre salariat et indépendance : analyse juridique et économique de la relation franchisé-franchiseur." Articles 72, no. 3 (September 27, 2017): 479–500. http://dx.doi.org/10.7202/1041094ar.
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Le contrat de franchise consiste à transmettre au franchisé le savoir-faire du franchiseur, moyennant des contreparties financières. Cependant, la transmission de ce savoir-faire va au-delà de la simple mise à disposition d’une « recette ». Elle se prolonge par une assistance de tous les instants délivrée par le franchiseur au franchisé. À certains égards, cette relation contractuelle ne ressemble-t-elle pas à celle d’un employeur avec le salarié ? Cet article étudie la relation émanant de ce contrat à l’aide des facteurs juridiques (le caractère subordonnant de la relation contractuelle) et économiques (la puissance économique du franchiseur) qui la structurent. L’étude s’appuie tant sur une analyse sociojuridique de la jurisprudence québécoise (1994-2016) au moyen d’une appréhension du contenu relationnel de ce contrat, que sur la littérature économique dans le but de comprendre les éléments de subordination et de puissance économique qui empreignent cette relation. Le constat révèle que la relation de franchise comporte de fortes composantes de subordination et d’inégalité de puissance économique pour le franchisé, engendrant un assujettissement aussi réel que celui mis en place par le salariat, même s’il n’est pas institué formellement par le contrat de franchisage. Plusieurs pistes d’action sont proposées. Si la requalification de certains contrats de franchise en contrat de travail semble une avenue préconisée par plusieurs pays, nos tribunaux y sont peu enclins. La deuxième piste d’action résiderait dans l’adoption d’une loi encadrant l’établissement et le contenu des contrats de franchise afin de réduire l’asymétrie informationnelle existante entre franchiseur et franchisé, ainsi que de mieux encadrer les qualités du « concept » sur lequel s’appuient les franchiseurs pour séduire les franchisés. Une troisième piste serait de reconnaître l’inégalité de puissance économique, point de départ de la reconnaissance « d’un droit de la dépendance dans l’indépendance » capable d’appréhender ces multiples situations d’entrepreneuriat dépendant dont la franchise n’est qu’un exemple.
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Willemse, Leonard C. "Die inkomstebelastinghantering van aanvangsfranchisefooie betaalbaar in die Suid-Afrikaanse petroleumbedryf." Journal of Economic and Financial Sciences 4, no. 2 (October 31, 2011): 407–26. http://dx.doi.org/10.4102/jef.v4i2.328.
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A wholesaler of petroleum products is prohibited in terms of section 12(2)(c) of Regulation 287 of the Petroleum Products Act, No. 120 of 1977, to own a retail licence for purposes other than that of training. As a result, petroleum companies make use of franchises to sell their products. The concept of a franchise is based on the principle that a franchisee obtains the franchise of an existing, often prosperous, business from a franchisor, and then operates the business under the banner of this franchise. The franchisee pays the franchisor franchise fees as consideration for certain items or privileges obtained. This article investigates the deductibility of franchise fees in terms of the current South African Income Tax Act, No. 58 of 1962 and includes an evaluation of Australian Income Tax Act sections that might offer deduction possibilities for franchise fees if applied within a South African context.
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Pranoto, Ersan Suria. "An Overview of Franchising In The Hospitality Industry." Binus Business Review 1, no. 1 (May 30, 2010): 133. http://dx.doi.org/10.21512/bbr.v1i1.1062.
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Nowadays, franchising is the most significant part in the hospitality industry through hotels and fast food restaurant. Franchisor gives the right to the franchisee to sell their product and service also to sub franchise it and worked under their brand name. Furthermore, in franchising there must be a contract between the franchisor and the franchisee which include the term and condition. Franchises include some aspects such as, screening, site selection, operating manuals and the pre opening. However, there are some advantages and disadvantages for both the franchisor and the franchisee. The expansion of franchise can be achieved through different strategies of distribution and the knowledge of the targeted market. The future of franchise can be gained through strategies of distribution system, which could emerge the entrepreneur into the majority economy and business.
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Joshi, Upasna. "Franchise Mart-The Source of Indian Entrepreneur." Journal of Education and Vocational Research 2, no. 1 (July 15, 2011): 4–9. http://dx.doi.org/10.22610/jevr.v2i1.18.
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Most of us encounter dozens of franchised businesses each day, ranging from familiar fast-food restaurants to franchised educational systems such as Learn Right. Franchise means the special right given by the producer of a product (brand) to another firm to sell his product in a particular area. Franchising operation is a contractual relationship between a franchisor (the company offering the franchise) and the franchisee (the company undertaking to promote the sale of franchisor’s products). Individual franchises are a tightly knit group of enterprises whose systematic operations are planned, directed and controlled by the operation’s innovator, called the ‘franchisor’. Franchising continues to be a highly regulated industry that endeavors to promote the healthy growth of the economy. As an entrepreneur is a catalyst in the process of economic development, there is a need to develop the concept of entrepreneurship. Franchise Mart is a source to develop the Indian entrepreneurs. The present paper aims to discuss the concept of franchising, reasons for franchising and different opportunities provided by franchising for development of Indian entrepreneurs. The top established and emerging franchises both national and international are also discussed in our present paper. Finally, some suggestions are given for success in franchising.
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Suleman, Dede. "Keuntungan yang di dapat dari mengembangkan usaha dengan system franchise (Studi kasus di Indonesia)." Jurnal Doktor Manajemen (JDM) 2, no. 1 (December 30, 2019): 1. http://dx.doi.org/10.22441/jdm.v2i1.6812.
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AbstractAbstract: one method to be able to develop a business that has run well with fast time by using a franchise business system where there will be a relationship between the franchisor and the franchisee. The franchisor is obliged to provide support and franchisees with an obligation to pay fees. This gives a beginner franchisor an overview of rights and obligations and understands the potential of developing a business with a franchise system in his business. when the franchise business is running there are several other income that the franchisor will get as the owner. in this case the results of this study are collected through group discussion (Franchise and Licensing) discussions that focus on information about the potential income of the franchisor. The results show that aside from the self-owned business profits there are also other franchisor sources of income that can be fostered from their franchisees; Other income is royalties, franchise fees, advertising costs, material purchases. In the findings of discussion income is the largest percentage of revenue contributors from the purchase of raw materials by the franchisee to the head office or owner of the franchiseKeywords Franchise, Royalty fee, franchise fee, marketing fee, purchase of raw materials AbstrakAbstrak: salah satu metode untuk bisa mengembangkan usaha yang sudah berjalan baik dengan waktu cepat dengan menggunakan sistem bisnis waralaba dimana akan ada hubungan antara franchisor dan franchisee. Franchisor berkewajiban untuk memberikan dukungan dan franchisee dengan kewajiban untuk membayar biaya. Ini memberikan gambaran pemilik waralaba pemula tentang hak dan kewajiban dan memahami potensi mengembangkan bisnis dengan sistem waralaba dalam bisnisnya. ketika usaha waralaba sudah berjalan ada beberapa pendapatan lain yang akan di dapat oleh franchisor sebagai pemilik. dalam hal ini dari hasil penelitian ini dikumpulkan melalui diskusi kelompok anggota (Waralaba dan Lisensi Indonesia) yang berfokus pada informasi tentang pendapatan potensial franchisor. Hasilnya menunjukkan bahwa selain dari keuntungan bisnis milik sendiri ada juga sumber pendapatan franchisor lain yang dapat dipupuk dari franchisee mereka; Penghasilan lainnya adalah royalti, biaya waralaba, biaya iklan, pembelian materi. Dalam temuan diskusi pendapatan adalah persentase terbesar dari kontributor pendapatan dari pembelian bahan baku oleh pemegang waralaba ke kantor pusat atau pemilikfranchiseKata KunciWaralaba, biaya Royalti, biaya waralaba, biaya pemasaran, pembelian bahan baku
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Balsarini, Peter, Claire Lambert, Maria M. Ryan, and Martin MacCarthy. "Subjective Knowledge, Perceived Risk, and Information Search when Purchasing a Franchise: A Comparative Exploration from Australia." Journal of Risk and Financial Management 14, no. 8 (July 21, 2021): 338. http://dx.doi.org/10.3390/jrfm14080338.
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Franchising has long been a method by which organizations seek to expand and facilitate local market development. However, franchising as a growth strategy can often be hampered by lack of suitable franchisees. To mitigate this shortage, some franchisors have engaged in recruiting franchisees internally from the ranks of their employees in addition to the traditional approach of recruiting franchisees externally. Predominantly franchisees are individuals rather than corporations and thus purchasing a franchise should most commonly be characterized as a consumer acquisition. To explore the relationship between subjective knowledge, perceived risk, and information search behaviors when purchasing a franchise qualitative interviews were conducted with franchisees from the restaurant industry. Half of these respondents were externally recruited having never worked for the franchisor and half were internally recruited having previously been employees of the franchisor. The external recruits expressed a strong desire to own their own business and engaged in extensive decision-making processes with significant information search when purchasing their franchises. Contrastingly, the internal recruits expressed a strong desire to be their own boss and engaged in limited, bordering on habitual decision-making processes with negligible information search when acquiring their franchises. The results reveal that differences in subjective knowledge and perceived risk appear to significantly impact the extent of information search between these two groups. A model of the relationship between subjective knowledge, perceived risk and information search in the purchasing of a franchise is developed that reconciles these findings. The findings also have practical implications for franchisors’ franchisee recruiting efforts which are integral to their capacity to develop local markets.
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Dharmawan, Jessica, and Urbaniasi Urbaniasi. "Review of Default Law in the Franchise Agreement Between the Franchisee and the Franschisor." QISTINA: Jurnal Multidisiplin Indonesia 2, no. 2 (December 1, 2023): 810–15. http://dx.doi.org/10.57235/qistina.v2i2.767.
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Franchise is an option for entrepreneurship with the least risk. Initially, the franchise started from the success of the business of the brand owner or franchisor. Through the franchise business, the franchisor will transmit the success of his business to the franchisee. In a franchise or franchise business, the cooperation agreement between the two parties is called a franchise agreement. The franchise agreement is a legal guideline that outlines the responsibilities of the franchisor and franchisee. In the franchise agreement, the franchisor has several responsibilities regulated in Government Regulation no. 42 of 2007 concerning franchise business (Franchise). In this regulation, it has been explained what are the obligations of the franchisor before entering into a franchise agreement with the franchisee. This is so that the franchisee is not deceived which will cause losses to the franchisee.
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Chien, Shih-Yi. "Franchisor resources, spousal resources, entrepreneurial orientation, and performance in a couple-owned franchise outlet." Management Decision 52, no. 5 (June 10, 2014): 916–33. http://dx.doi.org/10.1108/md-07-2013-0368.
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Purpose – Franchise outlets owned by entrepreneurial married couples are gradually increasing. Based upon prior research in resource-based view, entrepreneurial orientation (EO), franchising, and family business, the purpose of this paper is to analyze franchisor resources, spousal resources, and EO are critical to the development of franchisees’ performance. Design/methodology/approach –The author conducted a survey of 99 franchisees in couple-owned convenience store franchise outlets in Taiwan using the partial least squares technique. Findings – It was found that franchisor resources, spousal resources, and EO directly affect franchisee performance. In addition, franchisor resources also have an indirect effect on performance through EO, but spousal resources do not have an indirect effect. Practical implications – The franchisor should pay attention to the development of their resources and a franchisee's EO and the interaction between the franchisee and the spouse. Furthermore, a franchisee's EO facilitates the manipulation of the franchisor's resources. Originality/value – This study highlights the possession of franchisor and spousal resources, and the importance of EO to foster and develop the franchisee performance in a couple-owned franchise outlet. These findings also suggest that franchisor resources have indirect effect on performance through EO.
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Simin, Marina Jovićević, and Slobodan Živkucin. "ADVANTAGES OF FRANCHISE SYSTEM FOR DEVELOPMENT OF ENTREPRENEURSHIP." Knowledge International Journal 28, no. 1 (December 10, 2018): 177–81. http://dx.doi.org/10.35120/kij2801177j.
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Franchising is considered the most successful marketing concept around the world. Today, many franchises are offered, and it is incomparably easier and more secure to develop entrepreneurial spirit under the patronage of the already developed system. Franchise is called long term, firm contractual cooperation between independent companies or entrepreneurs, franchisor and franchisee, where the franchisor provides the franchisee with a set of knowledge and gives it its brand. The number of franchise systems in the world is rising, and competition compels the franchisee to search for new and attractive offers. The largest number of franchises exists on the United States market, the number of employees in this market is in arrears, and achieves the high GDP measured in billions of dollars. In the United States are represented all kinds of franchise systems, from the automotive industry, restaurants, education, beauty salons to new forms of work from home. Canada is the second largest in franchising, many forms have been developed that place the franchise at the very top of economic business. In Europe, the less developed countries, such as Poland, the Czech Republic, Hungary, Bulgaria, etc., are developing more and more domestic brands and striving towards the conquest of international markets. New models of franchised business such as home-based franchises are being developed to allow most people to work from home. The application of the franchise system in our country would significantly contribute to the development of the domestic market. The future success of franchising in Serbia depends on the ability to innovate, improve the size of the site, provide education to interested small and medium-sized enterprises and entrepreneurs. Looking at all these countries and different markets, one can conclude that franchising is less developed in weaker economies, while economically more developed markets achieve even greater expansion in the form of GDP, employment, education, institutions. If each country awakens awareness of the value of franchising as a good technique for enterprises and entrepreneurs, it will open the possibility of expansion franchising to international markets, through marketing, social networks and the Internet. What is important is that this type of franchising is developing in our country and in this way it is slowly focusing on international markets. In franchising, the risk of business failure when starting a business is significantly lower than when starting a stand-alone business. Franchising is a way to use a proven, more successful, business model in a personal business, thereby reducing the likelihood of failure. The franchisee still continues to act substantially with his own resources, at his own risk, but under a different name. A well-known and famous brand is an additional guarantee for greater recognition and an automatically higher number of consumers. Franchising is a shortcut to a more successful business success. In the future, banks are expected to pay more attention to the financing of franchising, as both franchisees and recipients are referred to banks that receive the role of checkpoints and mediators.
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Angellina, Pricillia, and Urbaniasi Urbaniasi. "Legal Consequences of Franchisees Doing Default Against Franchisors and Legal Protection for Franchisors." QISTINA: Jurnal Multidisiplin Indonesia 2, no. 2 (December 1, 2023): 1053–59. http://dx.doi.org/10.57235/qistina.v2i2.878.
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The franchisor and franchisee bond is a reciprocal bond. Because basically the franchisor grants a license to use an IPR in using logos, trademarks, patents, industrial designs, technology, and secret recipes for franchisees. On the franchisee side, of course, they are obliged to provide reciprocity by preparing land, infrastructure and paying a royalty fee to the franchisor. The franchise agreement is subject to Book III of the Civil Code concerning engagement, the legal relationship between the franchisor and the franchisee is also bound by a franchise condition as referred to in the Minister of Trade Regulation Number 71 of 2019 concerning Franchise Operations. The research method used by the author in this study is a normative juridical method, where the approach taken is to use a statutory approach as an object of study to analyze statutory regulations which are the primary source of law in this writing.
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Araújo, Davi Lucas Arruda de, Silvio Popadiuk, and Rafael Morais Pereira. "Barriers to knowledge transfer of the franchisor to franchisee: an application in language schools." Journal of Workplace Learning 32, no. 5 (April 25, 2020): 317–34. http://dx.doi.org/10.1108/jwl-09-2019-0110.
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Purpose This study aims to measure the influence of the barriers present in the knowledge transfer at the sales process, by the franchisor to the franchisee, in language schools in the São Paulo/SP city, Brazil. The theoretical aspects include the transfer of knowledge displayed through communication model and barriers inherent in this process. Using (Szulanski 1996) approach the barriers may occur in relation to, namely, the content of knowledge; context; the source; the recipient. Design/methodology/approach The methodology is quantitative and the type of research is exploratory and descriptive. For this investigation was used an adapted version of the questionnaire developed by Szulanski (1996), applied to a sample of 79 franchised language schools linked to the Brazilian Franchise Association. Beyond factor analysis it was used the nonparametric test of Jonckheere-Terpstra and analysis of variance, to comparing schools. Findings The results of this analysis revealed that certain types of knowledge transfers are evaluated by the franchisees as more favorably or unfavorably according to the brand franchise. These results show a lack of standardization trend of the activities of the sales process and mismatches with the guidelines of the franchisor. The authors highlight that in the comparison between the brands is evident the dominance of the CNA in relation to other networks of language franchises when analyzed the relationship factors, technical adequacy, absorption of knowledge, competence to absorb knowledge and in the indicators contribution to revenue, acceptance of guidelines and bring results. Originality/value This research contributes to the identification of barriers that are involved during the transfer of practices of the franchisor to the franchisee on the knowledge of the sales process in language schools, awakening in franchisee reflections of improvements and solutions that can be worked on and developed in their units. Specifically, the study contributes to the knowledge management literature in franchises, as this topic is still emerging, as it presents conflicting findings.
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Antia, Kersi D., Sudha Mani, and Kenneth H. Wathne. "Franchisor–Franchisee Bankruptcy and the Efficacy of Franchisee Governance." Journal of Marketing Research 54, no. 6 (December 2017): 952–67. http://dx.doi.org/10.1509/jmr.14.0182.
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Franchisors’ long-term viability is tied to the ongoing operations of their franchisees. To ensure the ongoing performance of franchisees, franchisors deploy multiple governance mechanisms. This study assesses how governance mechanisms deployed to enhance franchisee ability (via selection and socialization) and motivation (via incentives and monitoring) impact franchisee bankruptcy. The authors examine the individual and joint effects of deploying governance mechanisms that share the same underlying objective, namely, to enhance franchisee ability and motivation. They also assess how motivation-inducing mechanisms may serve to counter the motivation-dampening effect of an increased royalty rate. Relying on data from multiple archival sources, the authors identify all bankruptcy filings by franchisees and their franchisors across 1,115 franchise systems over a 13-year observation window. Their findings document a positive and significant relationship between franchisee and franchisor bankruptcy. They also find main and interaction effects of the ability- and motivation-influencing governance mechanisms on the likelihood of franchisee bankruptcy, and the existence of significant bankruptcy spillovers among franchisees within the same franchise system. They discuss implications for franchise theory and management.
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Andika, I. Gusti Ngurah Md Rama, Ni Luh Made Mahendrawati, and Ida Ayu Putu Widiati. "Perlindungan Hukum Terhadap Franchisee Akibat Pemutusan Sepihak dalam Perjanjian Franchise." Jurnal Preferensi Hukum 2, no. 3 (October 26, 2021): 491–95. http://dx.doi.org/10.22225/jph.2.3.3989.491-495.
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In the implementation of a franchise agreement, it is not uncommon for the agreement not to be implemented due to a unilateral termination by the franchisor. Considering that the franchisee in the franchise agreement is in a weaker position, in the event of a unilateral termination, it will suffer a large loss. However, in the laws and regulations, there are no clear arrangements for the protection of franchisees who experience unilateral termination who actually experience losses. The purpose of this study is to analyze the franchise agreement may be terminated unilaterally by the franchisor and the legal protection of the franchisee against the unilateral termination of the franchise agreement by the franchisor. This study uses normative legal research methods using primary legal materials, with the types of approaches used are statutory approaches, case approaches and conceptual approaches. Legal sources are then analyzed systematically. Based on the results of the study, it can be concluded that basically the franchise agreement cannot be terminated unilaterally unless the void conditions stated in the contract have been fulfilled and legal protection for the franchisee against the losses he has suffered can be sued for compensation based on default.
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Grace, Anthony Richard, Lorelle Frazer, Scott K. Weaven, and Rajiv P. Dant. "Building franchisee trust in their franchisor: insights from the franchise sector." Qualitative Market Research: An International Journal 19, no. 1 (January 11, 2016): 65–83. http://dx.doi.org/10.1108/qmr-09-2014-0085.
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Purpose – The purpose of this research is to identify the critical determinants of a franchisee’s trust in their franchisor. Design/methodology/approach – A qualitative approach was used, and 30 interviews were conducted with franchising participants. The first phase of the research consisted of exploratory interviews with franchising experts (franchise lawyers, accountants, consultants, mediators and bankers), and the second phase consisted of semi-structured interviews with franchisees and franchisors across two franchise systems. Findings – The research revealed five critical determinants of a franchisee’s trust in their franchisor: franchisee’s engagement in the system, franchisee’s confidence in the system, franchisee’s perception of a strong team culture, franchisee’s perception of franchisor competence and franchisee’s perception of franchisor character. Practical implications – The research provides insight into how the aforementioned components can be developed within a franchise system to build franchisee trust. The paper also concludes with four practical recommendations that can be integrated within a franchise system to increase levels of franchisee trust. Originality/value – This research builds on prior research into franchisee trust, providing an original contribution to the literature through the development of a practical model, showcasing critical determinants of a franchisee’s trust in their franchisor.
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Yeung, Ruth M. W., Maureen Brookes, and Levent Altinay. "The hospitality franchise purchase decision making process." International Journal of Contemporary Hospitality Management 28, no. 5 (May 9, 2016): 1009–25. http://dx.doi.org/10.1108/ijchm-08-2014-0399.
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Purpose The purpose of this study is to explore the hospitality franchise purchase decision-making process undertaken by franchisees in Macau as an emerging tourism destination and the role of national culture on purchasing a franchise brand and selecting a potential franchisor. Design/methodology/approach Semi-structured in-depth interviews with 18 franchisees in Macau, who purchased international and domestic hospitality franchise brands, were conducted to understand the feelings, attitudes and motivation of franchisees toward purchasing a hospitality franchise. Findings The study reveals that national culture can play an important role in franchisees’ decision-making process. Personal networks of friends and family (guanxi) are very influential in introducing and steering aspiring entrepreneurs toward franchising as an option to realize their ambitions, although there may be some limitations to franchisees with this approach. Guanxi was also found to be particularly relevant during negotiations and franchisees’ post-purchase reviews. Practical implications International franchisors should understand the importance of guanxi at different stages of the franchisees’ decision-making process. Franchisees should realize how a reliance on guanxi might negatively affect their efforts to undertake sufficient research to thoroughly evaluate the franchisor offer before contract signature. Originality/value A comprehensive hospitality franchisee decision-making purchase framework is developed, which includes the cultural context and cultural values. Guanxi, in particular, affects the franchisee decision-making process.
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Etty Indrawati. "Keberadaan Klausula Non Kompetisi dalam Perjanjian Waralaba untuk Mencegah Persaingan Usaha Tidak Sehat." JURNAL YUSTIKA: MEDIA HUKUM DAN KEADILAN 26, no. 01 (December 15, 2023): 18–31. http://dx.doi.org/10.24123/yustika.v26i01.5953.
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A Franchise Agreement is a written agreement between Franchisor and Franchisee. The Franchise Agreement may contain provisions in which the franchisor requires the franchisee not to carry out the same business activities as the ongoing franchise businesses for a certain period after the expiration of the franchise agreement (non-competition clause). In practice, there were unscrupulous franchisees with bad intentions, establishing franchise partnerships with franchisors to get the know-how provided by the franchisor; then, before or after the end of the franchise agreement immediately setting up the same business/ potentially becoming a business competitor to the franchisor. There are two purposes of this article. The first is to explore and analyze the importance of the non-competition clause in franchise agreement/ the risk if the non-competition clause is not included/ not stipulated in franchise agreement. The second is to investigate how to arrange the non-competition clause in a franchise agreement to prevent unfair business competition. This research project uses qualitative method, involves respondents and informants from business owners of national franchisors. There are two results of this study. The first is the non-competition clause in franchise agreement is very important and risky if the non-competition clause is not included in franchise agreement. This is because if the franchisor's business system is adopted by other parties, it will be detrimental to the franchisor who has built his business from scratch. The second is the non-competition clauses in franchise agreements should bind the franchisee's person, location and apply post contractually. This provision remains in force and must be complied with by the franchisee (within a certain period) even if the franchise agreement has ended. The research results are expected to provide a reference and understanding of the parties’ interests in the franchise agreement that need to be secured, particularly regarding intellectual property rights and the transfer of know-how, which must be respected to prevent unfair business competition by business actors. This research is expected to provide input to KPPU regarding breaches of the non-competition clause in franchise agreements that have the potential to qualify as acts of unfair business competition.
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Perrigot, Rozenn, Guy Basset, and Brinja Meiseberg. "Resale prices in franchising: insights from franchisee perspectives." Journal of Product & Brand Management 25, no. 7 (November 21, 2016): 663–75. http://dx.doi.org/10.1108/jpbm-03-2015-0831.
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Purpose The purpose of this paper is to offer a novel perspective on resale pricing in franchising, i.e. from a franchisee perspective, by combining legal and managerial considerations in the European context. The objective is to assess franchisee perceptions regarding resale pricing in their chains. Design/methodology/approach The authors adopt a qualitative approach and use 46 in-depth interviews with franchisees covering retail and service industries in the French market. Findings Many of the interviewed franchisees believe that joining a franchise chain involves respecting the recommended resale prices. For some of the franchisees, in link with the chain uniformity, imposing uniform resale prices throughout the chain represents a strength, because customers who visit different stores within the franchise chain expect to find consistent pricing. Moreover, many franchisees consider that their franchisors have some know-how that they use to set correct resale prices, taking into account the profit margin. Research limitations/implications This research contributes to the literature on resale pricing in franchising, as well as the franchising literature in general, by combining legal and managerial considerations, adopting a franchisee perspective, covering retail and service industries and focusing on French and European markets. Practical implications This research can be viewed by franchise experts, franchisors, franchisees and franchisee candidates as a synthesis of resale price-related legal aspects, adopted practices and potential conflicts in franchise chains in the French market. It also highlights price-related practices to be avoided to prevent potential conflicts. Originality/value The subject of resale pricing in franchise chains is a hot topic, because of its link with customer attraction, chain uniformity, franchisor know-how, franchisee autonomy and the legal dimension.
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Susanto, Clarissa Aurelia, and Urbaniasi Urbaniasi. "Application of Franchising as a Form of Agreement Object." AURELIA: Jurnal Penelitian dan Pengabdian Masyarakat Indonesia 2, no. 2 (July 4, 2023): 1270–73. http://dx.doi.org/10.57235/aurelia.v2i2.761.
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The approach in this study uses a normative juridical approach. The juridical approach is an approach to the problem by looking at it from the point of view of the applicable laws and regulations, especially regarding the application of franchising as a form of agreement. Therefore, this type of research is normative relating to the principles and norms in the implementation of franchise agreements, namely between the franchisor and the franchisee. In this paper using primary and secondary data obtained from library materials in the form of laws, government regulations, the Civil Code and literature related to problems and derived from legal materials such as primary legal materials, secondary legal materials and tertiary legal materials. A franchise agreement is a form of agreement involving the franchisor as the franchisor and the franchisee receiving the franchise. This legal relationship gives rise to binding rights and obligations for franchisors and franchisees. The franchise agreement includes an innominate agreement that is regulated outside the Criminal Code. Legal sanctions in violation of franchise agreements are regulated in Article 16 of Government Regulation Number 42 of 2007 where legal sanctions in the form of administrative sanctions are carried out through 3 (three) stages, namely giving written warnings, fines and/or revocation of franchise registration certificates.
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Wulandari, Retno. "Legal Protection of Franchisee in Franchise Contract Which Franchisor Unilaterally Terminates." NORMA 18, no. 1 (March 5, 2021): 1. http://dx.doi.org/10.30742/nlj.v18i1.1288.
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The Franchisor and the Franchisee's engagement tends to be based on the value of business profits alone. The document that becomes evidence (franchise agreement) tends to be poorly understood by the Franchisee, which can cause legal problems for him. One of the legal issues that can occur is the unilateral termination of the Franchisor to the Franchisee. Franchise agreements tend to be standardized, which comes from the Franchisor. These conditions make the Franchisee obliged to understand the agreement's contents well so that the franchise agreement is not terminated unilaterally by the Franchisor. This study aims to find out and analyze how legal protection for franchisee is based on franchise agreement. This research method is a normative legal research approach. The result of this study is unilateral termination of the franchise agreement will undoubtedly cause various legal problems for the parties bound in the franchise agreement.Keywords: Termination, Agreement, Franchise.
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Claudia, Jean, and Urbanisasi Urbanisasi. "Juridical Review of Franchise Agreement according to Perspective Positive Law in Indonesia." Law, Development and Justice Review 6, no. 2 (July 13, 2023): 94–110. http://dx.doi.org/10.14710/ldjr.6.2023.94-110.
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A franchise is a form of business partnership between two parties known as the franchisor and the franchisee. During the partnership period, the franchisee has the right to use the franchise's trademarks, business systems, technical assistance, and training, as well as other important aspects related to the business. In fact, a franchise agreement has a fairly high level of complexity because it involves many aspects and certain details that must be considered by both parties. The relationship between franchising and default is very close because the implementation of the contract is difficult when there is disagreement about the rights and obligations of each party in the franchise cooperation. If there is a violation on the part of the franchisor, the franchisor has the potential to take legal action. Such violations may include non-compliance with or violation of established procedures in promoting and disseminating the franchise mark, as well as non-compliance with the rules set by the franchisor in managing the business. By conducting this review, it is hoped that it will provide a firmer and more thorough understanding of franchise contracts from the perspective of positive law in Indonesia, so that all parties involved in the agreement can understand their rights and responsibilities and avoid possible legal problems in the future.
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PHAN, PHILLIP H., JOHN E. BUTLER, and SOO HOON LEE. "LEARNING: KEY TO LEVERAGING THE VALUE OF A FRANCHISE." Journal of Enterprising Culture 01, no. 03n04 (January 1994): 367–82. http://dx.doi.org/10.1142/s0218495894000057.
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The organizational learning dynamics inherent in the franchise relationship provide the primary focus for this research. By encoding knowledge of the skills needed to suceed within the contractual arrangement, the franchisor can short cut the learning process for the franchisee. Once the franchising arrangement is established, both franchisees and franchisors have vested interest in maintaining high levels of organizational learning. In this research a model is presented that incorporates these learning dynamics, and relates them to entrepreneurial returns. Using a sample of heavy-duty truck franchisees, the relationship between different types of organizational learning and performance are explored. The results indicate that the franchising contract may actually act to limit the returns to the franchise relationship. Instead, it may encourage the franchisee to direct their learning efforts to skew returns in their favor. Successful franchisees were found to systematically value the franchise contractual and non-contractual information content more than less successful franchisees.
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VAROTTO, LUÍS FERNANDO, and JURACY GOMES PARENTE. "FRANCHISOR-FRANCHISEE RELATIONSHIP QUALITY: TIME OF RELATIONSHIP AND PERFORMANCE." Revista de Administração de Empresas 56, no. 6 (December 2016): 600–610. http://dx.doi.org/10.1590/s0034-759020160603.
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ABSTRACT Franchise literature disputes how the relationship between franchisors and franchisees develops over time. Traditional lifecycle theory views relationships following an ascendant curve, in which relationship quality and performance strengthen over time. Another perspective better reflects the peculiarities of the franchisor-franchisee relationship, indicating that relationship quality in franchise systems follows a U-shaped curve. There is also limited research on the moderating effect of time on the relationship between relational variables and outcomes. This study sheds light on the influence of relationship duration on relationship quality and financial performance in the franchisee-franchisor relationship. Using a self-report survey from a sample of 342 franchisees, mean and regression analyses are conducted to test relationships. Results confirm the time effect on franchisor-franchisee relationship quality and performance, but the hypothesized shape of relationship phases is only partially confirmed. Moreover, time has a positive moderating effect on the impact of relationship quality on financial performance.
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Medeiros Júnior, Josué Vitor, Miguel Moreno Añez, and Hilka Pelizza Vier Machado. "Understanding the Franchised Strategic Praxis from the Practice Established by Franchise System." Revista Ibero-Americana de Estratégia 11, no. 2 (August 1, 2012): 120–44. http://dx.doi.org/10.5585/ijsm.v11i2.1840.
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This article aims to analyze the perception of a franchise on building strategies located around practices experienced by referencing franchisor's standards and regional reality. There is a complexity in the relationship between franchisee and franchisor in a franchise system and its implications in the strategies developed by these actors. This qualitative research adopted the theoretical approach called Strategy as Practice, which seeks to understand the strategy considering its stakeholders (practitioners), practices established and incorporated in addition to the practice that represents the effective implementation of strategic actions, socially constructed and reconstructed. For data collection, in-depth open interviews were conducted with the owner of two franchise stores, located in a city in the Brazil´s Northeast. The data were analyzed and categorized according to feedback from the franchisee on how he responds to practices imposed by the franchise system. As a result, four categories were identified that represent relevant practices: workshops sponsored by the franchisor, the franchisee's annual planning, visiting consultants, and business strategies for sales. It was concluded that although there is considerable control of the franchisor on its franchisees, many of the practices of the franchise system are adapted and transformed in practice by the franchisee, often in a different way than was originally imposed. We emphasize the importance of strategy as practice approach in understanding the construction and interpretation of the strategy in a franchise system based on social relationships developed in this system.
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Saputra, Dwi Purnawan Dodik, Johannes Ibrahim Kosasih, and Desak Gde Dwi Arini. "Perlindungan Hukum Bagi Hoki Clean Shoes dalam Perjanjian Waralaba." Jurnal Preferensi Hukum 2, no. 1 (March 19, 2021): 45–50. http://dx.doi.org/10.22225/jph.2.1.2795.45-50.
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The franchising is one of the business activities that support the economy. Therefore, in this study, this study analyzes the implementation of the franchise agreement clauses between franchisees and franchisees and knows the legal protection for Hockey Clean Shoes in case of default by the franchisee. This research uses empirical methods using document studies and field studies and data analysis using descriptive qualitative. The results show that the Hoki Clean Shoes franchise agreement has met the minimum clauses that must exist in the franchise agreement as stipulated in Government Regulation Number 42 of 2007 concerning Franchising and has fulfilled the principles of the agreement and is applicable in Indonesia. The obstacles faced by Hockey Clean Shoes so far are related to franchises because this is in the service sector so the turnover obtained by the franchisee every month is difficult for us to know because the financial management we do is different from the facts in the field. Franchise cooperation agreements like this are also vulnerable to default.
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Sonfield, Matthew C. "Progress and Success in the Development of Black-Owned Franchise Units." Review of Black Political Economy 22, no. 2 (December 1993): 73–87. http://dx.doi.org/10.1007/bf02689944.
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One path to black entrepreneurship is via the franchise. This article analyzes the basic issues of progress and success in the development of black-owned franchise units, with a focus on the measurement and promotion of such progress and success. Existing measures and promotional efforts are evaluated, and the perspectives of both the franchisor and the franchisee are probed. Secondary sources of data are analyzed, as are a series of in-depth telephone interviews conducted with a sampling of top executives of both large and small franchisor companies and also with a variety of black owners of franchise units. Recommendations and conclusions, for both franchisors and franchisees, are presented.
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Antia, Kersi D., Xu (Vivian) Zheng, and Gary L. Frazier. "Conflict Management and Outcomes in Franchise Relationships: The Role of Regulation." Journal of Marketing Research 50, no. 5 (October 2013): 577–89. http://dx.doi.org/10.1509/jmr.11.0144.
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Franchise relationships are prone to conflict. To safeguard the rights of individual franchisees, several states have legislated greater franchisor disclosure (registration law) ex ante and/or franchisor “termination for good cause” (relationship law) ex post. The impact of regulatory oversight on franchisor–franchisee conflict, however, remains unclear. Relying on agency theory arguments, the authors first assess the influence of the regulatory context, both by itself and in combination with the franchise ownership structure, on the incidence of litigated conflict. Conditional on litigation, they also predict the impact of franchise regulation on both the parties’ litigation initiation and resolution choices and the resulting outcomes. The authors test the hypotheses using a unique multisource archival database of 411 instances of litigation across 75 franchise systems observed over 17 years. The results indicate that the regulatory context, by itself as well as in combination with the franchise ownership structure, significantly shapes parties’ conflict management choices. The authors also find evidence of a trade-off between prevailing in the particular conflict and achieving franchise system growth objectives.
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Rifaie, Devie Rachmat Ali Hasan, and Suhendro Suhendro. "Kebebasan Berkontrak Dalam Penerapan Perjanjian Lisensi Waralaba Sebagai Salah Satu Aspek Alih Teknologi di Indonesia." Journal of Social Science and Digital Marketing 3, no. 2 (July 13, 2023): 63–76. http://dx.doi.org/10.47927/jssdm.v3i2.674.
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Perjanjian waralaba merupakan suatu perjanjian antara distributor barang atau jasa atau pemilik merek dagang atau hak cipta (franchisor). Penjual (franchisee) setuju menjual barang dan jasa di bawah nama franchisor. Tulisan ini menganalisis tentang bentuk penerapan perjanjian waralaba sebagai salah satu aspek alih teknologi dan menganalisis bentuk penerapan prinsip kebebasan berkontrak dalam perjanjian waralaba. Jenis penelitian yang digunakan ialah penelitian hukum normatif. Pendekatan dalam penelitian ini menggunakan pendekatan perundang-undangan. Hasil penelitian menunjukkan bahwa perjanjian franchise adalah suatu perjanjian yang diadakan antara pemilik franchise (franchisor) dengan pemegang franchise (franchisee). Franchisor memberikan hak kepada pihak franchisee untuk memproduksi atau memasarkan barang dan/atau jasa dalam waktu dan tempat tertentu yang disepakati. Kesepakatan itu di bawah pengawasan franchisor, sementara franchisee membayar sejumlah uang tertentu atas hak yang diperolehnya. Perjanjian franchise sebagai salah satu kontrak innominaat diatur dalam perundangan yang khusus, namun tetap mengacu pada peraturan perundangan yang umum, yakni KUHPerdata. Perjanjian franchise merupakan pengembangan dari Pasal 1338 KUHPerdata. Secara khusus belum ada pengaturan tentang franchise, namun tetap dapat dilaksanakan berdasarkan pasal tersebut. Franchise merupakan suatu perjanjian timbal balik karena pemberi waralaba maupun penerima franchise berkewajiban untuk memenuhi prestasi tertentu. Suatu paket franchise merupakan satu paket yang terdiri atas beberapa jenis perjanjian, seperti perjanjian lisensi, perjanjian merek, perjanjian paten, perjanjian bantuan teknis dan perjanjian yang menyangkut kerahasiaan.
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Setiadi, Ario Setra. "The Effectiveness of the Government Regulation Concerning Franchises in Resolving Franchise Business Disputes in Indonesia." Global Legal Review 4, no. 1 (April 29, 2024): 74. http://dx.doi.org/10.19166/glr.v4i1.6747.
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<p>Franchising is a business system that is growing with the current in Indonesia and the legal relationship between the franchiser and the franchisee is regulated in a contract that regulates the rights and obligations of the parties who have a relationship to comply with the contents of the agreement, which if violated can have consequences for the future law according to the agreement in the franchise agreement. Since the enactment of Government Regulation No. 42 of 2007, franchise business disputes still occur in Indonesia, such as abuse of franchisor authority, quality of technical and managerial support provided by franchisors to franchisees, and unfairness in profit sharing between franchisees and franchisees. This study aims to examine the effectiveness of Government Regulation No. 42 of 2007 as a legal basis for resolving franchise business dispute cases in Indonesia. The research method used is normative legal research with a literature study approach. The results showed that Government Regulation No. 42 of 2007 is a regulation that regulates the mechanism for resolving business disputes in Indonesia, including in the case of franchise business disputes. This research also identifies several challenges that may be faced in the application of Government Regulation No. 42 of 2007 in resolving franchise business dispute cases, such as the complexity of the dispute resolution process, limited access to dispute resolution institutions, and low awareness and understanding of business people regarding the dispute resolution mechanism regulated in the regulation. Steps are needed such as counseling and persuasive approaches to franchise business actors regarding the importance of resolving business disputes through the mechanisms regulated in the regulation, monitoring, and evaluation of the dispute resolution process carried out by the appointed institution.</p>
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Kim, Jangkwon, and Dongwon Lee. "Criteria for Judging the Illegality of Restrained Transaction under the Fair Transactions in Franchise Business Act: focusing on the ʻEssential Itemsʼ." LAW RESEARCH INSTITUTE CHUNGBUK NATIONAL UNIVERSITY 34, no. 1 (June 30, 2023): 197–221. http://dx.doi.org/10.34267/cblj.2023.34.1.197.
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In a franchise business, the franchise fee is not only a necessary condition for establishing a franchise agreement between the franchisor and the franchisee, but also a key factor that maintains the franchise system and determines the success or failure of the business. Essential items are items that require franchisees to purchase from the franchisor or a person designated by the franchisor in order to maintain a unified image and the same quality of the franchise business. In general, in case of violation, disadvantages such as suspension of product supply or refusal to extend the contract are provided. Although the designation of these essential items and the receipt of the difference in franchise fee are not illegal as they have legal grounds, disputes related to excessive profits and essential items continue to occur. Therefore, the franchisor has an incentive to designate non-essential items as essential items in order to maintain a unified image and the same quality of franchise business. On the contrary, if the majority of raw and subsidiary materials are individually purchased by franchisees, the existence of the franchise business itself by the franchise headquarters may become impossible. However, it is not easy to review whether all essential items are illegal. Therefore, in order to resolve disputes and conflicts between franchisors and franchisees, it is necessary to closely review them by referring to adequate court decisions and precedents. In order for the franchisor to select essential items, it would be desirable to select them individually by considering the nature, characteristics, use, and function of each item, rather than applying a uniform standard for each item type. First of all, this paper proposes that the franchisors provide franchisees with proper and adequate scope of essential items for business operation. The basic concept and legal issues will be explained in Section 2. Secondly, among the unfair acts that may occur after being designated as essential items, the illegality requirements and related precedents of restrictive transactions under the Franchise Business Act will be reviewed in Section 3. Through this, it aims to clarify the standards for the requirements for determining illegality in relation to essential items to market participants, such as franchisors and franchisees, and contribute to reducing unnecessary disputes and conflicts that may occur in the course of that business.
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Wardana, Arya Salwa, and Urbaniasi Urbaniasi. "Legal Remedies and Franchise Protection in Termination of the Franchise Agreement Unilaterally by the Franchisor Before the Termination of the Agreement." QISTINA: Jurnal Multidisiplin Indonesia 2, no. 2 (December 1, 2023): 1093–99. http://dx.doi.org/10.57235/qistina.v2i2.887.
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The franchise agreement is a written agreement made by both parties between the franchisor and the franchisee which contains the rights and obligations of each party as well as legal consequences that must be obeyed by each party. In implementing a franchise agreement, the possibility of problems or disputes is very open, so it is not uncommon for the franchisor to terminate the agreement unilaterally. This study uses normative legal research methods due to a problem of norms, namely the absence of norms. This study uses 2 approaches, namely the statutory approach and the conceptual approach. Based on the discussion and research results, it is known that basically the franchise agreement cannot be terminated unilaterally either from the franchisor or from the franchisee before the end of the agreement, unless there are void conditions stated in the contents of the agreement and have been agreed upon by the parties. As for legal remedies that can be taken by franchisees who suffer losses due to unilateral termination by the franchisor, namely filing a claim for damages by default.
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Baeck, Joke, and Ton Hartlief. "Goodwill Compensation after Termination of a Franchise Contract: Comparative Perspectives on Cour de Cassation 23 October 2012 (No. 11-21.978)." European Review of Private Law 22, Issue 6 (December 1, 2014): 955–59. http://dx.doi.org/10.54648/erpl2014069.
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Abstract: In the case decided by the French Cour de Cassation on 23 October 2012, a franchisee invoked the rules on unjustified enrichment to claim compensation for loss of clientele (also referred to as 'goodwill compensation') resulting from the termination of the franchise contract. The Cour de Cassation dismissed the claim of the franchisee, stating that the rules on unjustified enrichment may not be invoked if the alleged enrichment of the defendant and the alleged impoverishment of the claimant find their justification in the execution or termination of a contract entered into by the claimant and the defendant. The following reports examine how this case would be resolved in seven other European jurisdictions - Belgium, Estonia, Germany, Ireland and the United Kingdom, Italy and the Netherlands - as well as under the Draft Common Frame of Reference. The overall conclusion is that all the examined jurisdictions are reluctant to allow an unjustified enrichment claim for loss of clientele after termination of a franchise contract. However, in almost all the examined jurisdictions, legal scholars and courts seem to look for alternative ways to grant a franchisee, under certain conditions, a goodwill compensation after termination of the franchise contract, e.g. by applying the specific statutory rules concerning commercial agency by way of analogy to franchisees. Résumé: S'étant vu notifier la fin de son contrat de franchise, un franchisé avait invoqué les règles de l'enrichissement sans cause pour obtenir du franchiseur une indemnité pour perte de clientèle. Dans son arrêt du 23 octobre 2012, la Cour de cassation française rejette cette demande, en statuant que « les règles gouvernant l'enrichissement sans cause ne peuvent être invoquées dès lors que l'appauvrissement et l'enrichissement allégués trouvent leur cause dans l'exécution ou la cessation de la convention conclue entre les parties ». Les rapports suivants examinent comment cette affaire serait résolue dans sept autres juridictions européennes - en Allemagne, en Belgique, en Estonie, en Irlande et au Royaume-Uni, en Italie et aux Pays-Bas - ainsi que selon les règles du Projet de cadre commun de référence. La conclusion générale est que toutes les juridictions examinées sont réticentes à accorder au franchisé, sur le fondement de l'enrichissement sans cause, une indemnité pour perte de clientèle après la cessation du contrat de franchise. Toutefois, dans la plupart des juridictions examinées, des auteurs et des juges cherchent des solutions alternatives pour accorder au franchisé, sous certaines conditions, une indemnité pour perte de clientèle après la cessation du contrat de franchise, notamment en appliquant les règles spécifiques du contrat d'agence commerciale par analogie au contrat de franchise.
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Chen, Ye-Sho. "Sustainability Innovation Enabled by Digital Entrepreneurship in Franchise Organizations." International Journal of E-Entrepreneurship and Innovation 11, no. 1 (January 2021): 71–85. http://dx.doi.org/10.4018/ijeei.2021010105.
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In responding to United Nations' Sustainable Development Goals, using digital entrepreneurship to replicate proven sustainability innovation is an effective approach to scaling up the franchise systems to achieve the goals. The authors show a platform of sustainability innovation enabled by digital entrepreneurship in nurturing a trusted franchisor-franchisee relationship to grow the franchise system. The platform is a digital nervous system consisting of technology networks, social networks, value networks, and responsive networks. The platform is grounded in synergistically integrating the digital capability of developing and disseminating working knowledge globally and effective entrepreneurial solutions locally. Sustainability innovation through such a methodology is a win-win approach to both franchisor and franchisees. An exemplar illustration of how franchise systems help in the fight against COVID-19 is included.
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Putri, Ika Rachmawati Sukarno. "Legal Analysis of Fraud Disputes in Franchise Practices: An Overview of the Perspective of Civil Society Capita Selecta." AURELIA: Jurnal Penelitian dan Pengabdian Masyarakat Indonesia 2, no. 2 (July 4, 2023): 1181–87. http://dx.doi.org/10.57235/aurelia.v2i2.694.
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This article discusses a legal analysis of fraudulent disputes that occur in franchise practices. The main focus of this analysis is to look at fraud disputes in franchise practices from the perspective of civil society capita selekta. This research was conducted by collecting data from relevant primary and secondary legal sources. In the context of franchising, fraud disputes occur when a franchisor knowingly commits fraud or provides false information to a franchisee with the aim of making a profit. This kind of fraud often involves misunderstanding of the franchise contract, injustice in business practices, lack of communication and support from the franchisor, and non-compliance with operational standards. This legal analysis of fraudulent disputes in franchise practices uses the principles of contract law, fairness and protection of rights. Contract law principles are used to interpret, enforce and enforce franchise contracts. The principle of justice ensures that dispute resolution is carried out in a fair and objective manner. Meanwhile, protection of rights is important in maintaining the integrity of the franchise industry and promoting the sustainability of this industry. In handling fraud disputes in franchising practices, it is important for franchisees to understand the franchise contract well and comply with the stipulated conditions. In the event of fraud on the part of the franchisor, the franchisee may bring legal claims based on breach of contract, unfair business practices or fraud. In conclusion, the application of legal principles in handling fraud disputes in franchise practices is very important. This article provides an overview from the perspective of civil society, taking into account the principles of contract law, justice and protection of rights. This research provides a better understanding of fraud disputes in franchise practices and their relevance in the context of civil law capita selekta.
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Indrawati, Etty, and Y. Sari Murti Widiyastuti. "Breach of Non-Competition Clause in Franchise Agreements Related to Unfair Business Competition." Law Review 22, no. 3 (May 31, 2023): 326. http://dx.doi.org/10.19166/lr.v22i3.6537.
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The non-competition clause in the franchise agreement is the franchisee's commitment not to run a similar business or potentially become a competitor to the franchisor's business within a certain period as a form of protection of the franchisor's intellectual property rights and appreciation for the transfer of know-how that the franchisor has carried out in the form of knowledge, concept, and experience to the franchisee. There are two purposes of this article. First is to explore and analyze cases of breach of the non-competition clause in franchise agreements in Indonesia carried out by franchisees can be qualified or not as a form of unfair business competition as regulated in Article 1 number 6 Law Number 5 of 1999 concerning Prohibition of Monopolistic Practices and Unfair Business Competition. Second is to investigate the legal remedies taken by the franchisor against the franchisee who breaks the non-competition clause in the franchise agreement. This research project uses qualitative method. This research involved respondents and informants from business owners of national franchisors. There are two results of this study. First, breaking non-competition clauses in franchise agreements, which have been read before signing, can qualify as unfair business competition. Second, if a franchisee or former franchisee breaks a non-competition clause, it is necessary to communicate with the violating party first before giving a summons/warning. Moreover, if it is still not heeded, the franchisor can file a lawsuit in court or submit a complaint to The Indonesia Competition Commission (KPPU).<p> </p>
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Winata, Ervin Kusuma. "Coffee Shop Businesses (Kepengen Coffee) To Survive the Economic Effects of a Pandemic by Restructuring Royalty Agreements." NORMA 17, no. 3 (February 6, 2021): 33. http://dx.doi.org/10.30742/nlj.v17i3.1074.
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Economic globalization in the last decade is developing very fast, the business world is always moving dynamically, business people are always looking for breakthroughs in growing their businesses one of which is a franchise system with the principles contained in the franchise agreement, but many companies are stalled due to co-19 virus pandemic so entrepreneurs must innovate and restructure to support the business. This is empirical legal research. The result of this paper is that principle of franchising is a pillar in a franchise agreement, and the parties in the franchise agreement have adhered to this agreement so that both parties need to fulfil these principles, due to the law that occurs due to a pandemic is a corporate restructuring and temporary agreement changes. The franchisor must think of regulations that benefit the franchisee with little risk. In restructuring the company and agreements, the franchisor must accurately measure the impact of the covid-19 pandemic on the franchisees' outlets.Keywords: franchising, principles, restructuring
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Bakalarz, Tomasz. "Odpowiedzialność organizatora sieci franczyzowej wobec pracowników zatrudnionych przez uczestnika sieci." Przegląd Prawa i Administracji 113 (September 12, 2018): 9–22. http://dx.doi.org/10.19195/0137-1134.113.1.
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THE RESPONSIBILITY OF THE ORGANIZER OF THE FRANCHISE NETWORK TOWARDS THE EMPLOYEES EMPLOYED BY THE NETWORK PARTICIPANTThe franchise system is based on cooperation of unrelated entities. Each franchisee has an independent employer status and is responsible for employee’s damages. In this article, the author aims to analyze this basic principle. Franchisor has a contractual right to supervise realization of franchise’s package. However, in extremal cases, this control power may be abused. Franchisor may influence franchisee’s decision in the area of employment, limiting franchisee’s independence as an employer. The author analyzes this cases and an opportunity of recognizing franchisor as employer or joint employer of franchisee’s employees. The author, fi nally, examines whether the franchisor may be held liable for damages to the employees.
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Iwandi, Iwandi, Rustam Efendi, and Chairul Fahmi. "THE CONCEPT OF FRANCHISING IN THE INDONESIAN’S CIVIL LAW AND ISLAM." Al-Mudharabah: Jurnal Ekonomi dan Keuangan Syariah 4, no. 2 (September 29, 2023): 14–39. http://dx.doi.org/10.22373/al-mudharabah.v5i2.3409.
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The franchise concept is an agreement between the franchisor and the franchisee. This means that the franchisor, as the patent owner of the trademark, has the right to receive a certain amount of royalties or fees to be paid by the franchisee based on legal provisions. Franchise agreements are regulated in Indonesian civil law with regard to special rights to trademarks. While in Islamic law, the franchise agreement is actually a development of a form of cooperation (syirkah). This research uses the library research method, where data sources come from laws and other secondary data. The results of this study indicate that a franchise agreement under civil law, which refers to Article 4 of Government Regulation No. 42 of 2007 on Franchising, states that every franchise agreement of any kind must be made in writing by the parties. The existence of a franchise agreement is an innominaat contract. Innominaat contracts are contracts that arise, grow and develop in practice. From the perspective of Shari'ah economic law, franchise agreements belong to the group of shirkah (partnership) and the law is permissible. In addition, the franchise agreement involves the cooperating parties, namely the franchisor and the franchisee. Meanwhile, the franchisor's capital consists of intellectual rights in the form of company names, logos, systems and methods, which are owned and developed by the franchisor.
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Avianissa, Dhea Fanny, and Ery Agus Priyono. "Konsekuensi Yuridis Disharmoni Perjanjian Baku Sel-Sel Cheese Tea Kramat Jati Dengan Regulasi Franchise Di Indonesia." Jurnal Pembangunan Hukum Indonesia 5, no. 1 (January 31, 2023): 29–46. http://dx.doi.org/10.14710/jphi.v5i1.29-46.
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Peraturan perundang-undangan tentang Waralaba (franchise) mengamanatkan bahwa Franchisor diwajibkan memberi pembinaan kepada franchisee berwujud pelatihan; bimbingan operasional manajemen; pemasaran; penelitian; serta pengembangan secara berkelanjutan dan tapi kewajiban ini tidak selalu dituangkan dalam kontrak franchise. Penelitian ini bertujuan untuk menganalisis tentang akibat hukum (konsekuensi yuridis) disharmonisasi perjanjian baku franchise Sel-Sel Cheese Tea Kramat Jati dengan regulasi franchise di Indonesia. Metode penelitian yuridis normatif, data yang digunakan data sekunder dan spesifikasi penelitian ini bersifat deskriptif analitis. Hasil penelitian menunjukkan bahwa ada disharmoni perjanjian baku franchise Sel-Sel Cheese Tea Kramatjati dengan regulasi franchise di Indonesia, karena kewajiban Franchisor Sel-Sel Cheese Tea Kramat Jati kan untuk melakukan pembinaan kepada franchisee sebagaimana regulasi franchise di Indonesia, tidak termuat dalam perjanjian baku franchise Sel-Sel Cheese Tea Kramat Jati. Disharmonisasi perjanjian baku franchise Sel-Sel Cheese Tea Kramat Jati dengan regulasi franchise di Indonesia dikategorikan sebagai obyek suatu yang dilarang sebagai syaratnya sahnya perjanjian dan konsekuensinya perjanjian batal demi hukum.
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Liumenti, Liumenti, and Urbaniasi Urbaniasi. "The Role of the Prospectus in the Application of the Disclosure Principle to the Franchise Cooperation Agreement." QISTINA: Jurnal Multidisiplin Indonesia 2, no. 2 (December 1, 2023): 805–9. http://dx.doi.org/10.57235/qistina.v2i2.766.
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In today's business world, franchising is also known, which are generally carried out by companies and individuals who carry out business activities in the services, food and beverage sectors, such as fast food restaurants and cafes. Franchising in Indonesia is currently regulated in Government Regulation Number 42 of 2007 Concerning Franchising, this Government Regulation is stipulated to establish a balance between the parties in a franchise contract through various procedures that must be fulfilled by the franchisor and franchisee in a franchise business, mandatory procedures fulfilled by the parties in the franchise contract according to Government Regulation Number 42 of 2007 namely the Franchise Offer Prospectus. However, both the Franchisor and the Franchisee as parties to the franchise contract in practice in the business world in Indonesia until now very rarely understand the importance of the Franchise Offer Prospectus and are aware of the existence of the Franchise Offer Prospectus itself, this is due to a problem law, that is, the rule of law in the field of franchising is blurred. Thus this journal will discuss the Franchise Offer Prospectus Arrangements in the Franchise Agreement. The legal method used is the normative legal method, using primary data obtained from legal principles, comparisons of laws written in laws and regulations, as well as applicable norms and secondary data obtained by conducting library research. The results obtained in this study are that the arrangement of the franchise offer prospectus in the franchise agreement refers to article 7 of Government Regulation Number 42 of 2007 concerning franchising which is still general in nature and still needs to be corrected, so that the delivery of the Franchise Offer Prospectus by the Franchisor to the Prospective Franchisee is intended to the franchisee can carry out a business feasibility study on the franchise business that he will undertake.
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Supardiono, Dedik. "PENGARUH RELASI FRANCHISE TERHADAP PENINGKATKAN PERFORMA FRANCHISEE (Studi pada Franchisee Ayam Bakar Mas Mono, Pecel Lele Lela dan Es Teler 77 di Wilayah Jabodetabek)." Jurnal Pemasaran Kompetitif 2, no. 2 (March 23, 2019): 63. http://dx.doi.org/10.32493/jpkpk.v2i2.2460.
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ABSTRAK Studi ini dilakukan untuk menguji pengaruh aspek kontrak kerjasama, aktivitas manajerial, entrepreneurship dan branding (pengelolaan merek) terhadap relasi franchise dalam meningkatkan performa franchisee. Pengambilan sampel memakai teknik purposive, dan didapatkan sampel sejumlah 107 dari franchisee Restoran Ayam Bakar Mas Mono, Restoran Pecel Lele Lela dan Restoran Es Teler 77. Seluruh franchisee berlokasi di Jabodetabek. Adapun hipotesis penelitian ini adalah semakin besar nilai kontrak kerjasama, aktivitas manajerial, entrepreneurship dan branding akan semakin meningkatkan relasi franchise, dan semakin tinggi nilai relasi franchise maka akan semakin tinggi pula performa franchisee. Analisis data dengan menggunakan software SPSS 20 dan Lisrel 8.7 Student Version. Hasil analisis menunjukkan bahwa kontrak kerjasama, aktivitas manajerial, entrepreneurship dan branding berpengaruh positif dan signifikan terhadap relasi franchise, dan relasi franchise berpengaruh positif dan signifikan terhadap performa franchisee. Temuan empiris dalam studi ini mengindikasikan bahwa untuk meningkatkan performa franchisee diperlukan peningkatan faktor-faktor kontrak kerjasama, aktivitas manajerial, entrepreneurship dan branding serta relasi hubungan franchise. Kata kunci : Franchise, Franchisor, Franchisee, Perjanjian Kerjasama, Aktivitas Manajerial, Entrepreneurship, Branding, Relasi Franchise, Performa Franchisee
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Kaufmann, Patrick J., and William S. Vincent. "Franchisor Environmental Liability for Previously Contaminated Property." Journal of Public Policy & Marketing 16, no. 2 (July 1997): 289–97. http://dx.doi.org/10.1177/074391569701600209.
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Environmental legislation has created potential liability for retailing franchisees that purchase previously contaminated land. Because of the quasi-integrated nature of the franchise relationship, the franchisor also may be drawn indirectly into liability for its franchisee's cleanup costs. The franchisor has two options to reduce its chance of liability. Faced with a decision to distance itself from the site selection process or incur the added costs and potential pricing impacts of greater involvement in the process, franchisors have strong incentives to reduce franchisee support. This reduction in support has detrimental implications for both franchise policy and environmental policy. The authors report the results of an empirical study that links franchisors’ concerns about potential environmental liability to actions to distance themselves from the site selection process or, alternatively, formally to require franchisee environmental investigation of all prospective properties.
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Lim, Kenneth De Lara, I. Nyoman Putu Budiartha, and Ni Made Puspasutari Ujianti. "Akibat Hukum Wanprestasi dalam Perjanjian Waralaba (Franchise) Pempek Farina di Kota Denpasar." Jurnal Interpretasi Hukum 1, no. 1 (August 20, 2020): 60–65. http://dx.doi.org/10.22225/juinhum.1.1.2187.60-65.
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Franchise is a business relationship between a brand owner and another party that gives permission for the use of the mark within a certain period. If the parties do not comply with the contents of the franchise agreement, the injured party can sue. The franchise operating in Denpasar is Pempek Farina. Pempek Farina is a franchise business that is engaged in the fast food industry. The purpose of this study is to describe the form of the Pempek Farina franchise agreement in Denpasar and analyze the legal consequences for the franchisee if it violates the Pempek Farina franchise agreement. The purpose of this study is to determine the form of the agreement and determine the legal consequences for the franchisee if it violates the franchise agreement. The research method used is empirical research with a sociological approach. The results showed that the form of the Pempek Farina franchise agreement is a form of underhand agreement, the result of which arises when the franchisee defaults on the agreement, the agreement that has been made may expire. With the provisions of Article 1266 and Article 1267 of the Criminal Code the franchisor will cancel the agreement and ask the franchisee to stop selling the product of the franchisor.