Did You Know About Franchise.

Franchising ( UK : Franchise ; French : Franchise ) for honesty or freedom ) is the rights to sell a product or service or service . Meanwhile, according to the Indonesian government version , which is defined as the franchise is an engagement where one party is given the right to utilize and or use of intellectual property rights ( IPR ) or a business meeting of the hallmark of any party with a reward based on the requirements set by the other party or in the provision and sale of goods and services .

Meanwhile, according to the Indonesian Franchise Association , Franchise is intended to :

A system of distributing goods or services to end customers , where the brand owner ( franchisor ) gives rights to individuals or companies to conduct business with the brand , name , systems , procedures and ways predetermined within a certain time period covers a certain area .

Franchisor and franchisee .

In addition to understanding the franchise , also needs to be explained what is meant by the franchisor and the franchisee .
Franchisor or franchisor , is a business entity or individual which entitles the other party to take advantage of and or use of intellectual property rights or characteristic of the invention or its business .
Franchisee or franchisees , business entity or individual is given the right to utilize and or use of intellectual property rights or inventions or characteristic possessed franchisor .

Franchise history .

Franchise was first introduced in the 1850s by Isaac Singer , Singer sewing machine makers , when they want to increase sales distribution of sewing machines . Although the effort failed , but he was the first to introduce a business format franchise in the U.S. . Then , how was followed by another, more successful franchisees , John S Pemberton , the founder of Coca Cola . However , according to other sources , who follows Singer then is not Coca-Cola , but a U.S. auto industry , General Motors Industry in the year 1898. Another example in the U.S. is a telegraph system , which has been operated by various railroad companies but controlled by Western Union as well as exclusive agreements between automobile manufacturers with the seller .
Franchising is currently dominated by fast food franchises . This trend began in 1919 when A & W Root Beer restaurant opened quickly sajinya . In 1935 , Howard Deering Johnson in collaboration with Reginald Sprague to monopolize modern restaurant business . Their idea is to let their partner to independently use the same name , food , supplies , logo and even building design in exchange for a payment . During its development , business systems undergoing various improvements , especially in the l950 's that later became known as business format franchising (business format ) or sometimes referred to as second -generation franchise . The development of the franchise system so rapidly , especially in his home country , the U.S. , causing popular franchise as a business system in various fields of business , reaching 35 percent of total existing retail businesses in the U.S. . While in England , the development of the franchise pioneered by J. Lyons through the efforts of Wimpy and the Golden Egg , in the '60s . Franchises knows no discrimination . Franchise owner ( franchisor ) in selecting candidates for its business partners based on the mutual benefit , not by SARA .
Different franchise categories , among others : the franchise in the form of food , education and others. One form is still a lot of growing franchise in Indonesia.

Type of franchise .

Franchising can be divided into two :
Franchise abroad, tend to be preferred because the system is more obvious , the brand has been received at various world , and felt more prestigious .
Franchise in the country , is also one investment option for people who want to quickly become entrepreneurs but do not have enough knowledge of the initial tools and business continuity is provided by the franchisor .

Franchise fees .

The franchise fee includes :

The starting fare , starting from Rp . 10 million to Rp . 1 billion . These costs include expenses incurred by the franchisor to make a place of business in accordance with the specifications of the franchisor and the cost of the use of intellectual property rights .
The cost of royalties , the franchisee is paid every month of operating profit . The amount of royalty fees ranging from 5-15 percent of the gross income . The cost of proper royalties is 10 percent . More than 10 percent of the cost normally incurred for marketing that needs to be accounted for .

Franchising in Indonesia .

In Indonesia , the franchise system became known in the 1950s , with the advent of motor vehicle dealers through the purchase of a license . The second development began in the 1970s , with the start of the system plus the purchase of a license , not just being a franchisee distributors , but also has the right to manufacture its products . In order for the franchise to grow rapidly , the main requirements that must be owned the territory is a binding legal certainty for both the franchisor and franchisee. Therefore, we can see that in a country that has a clear legal certainty , the franchise is growing rapidly , for example in the U.S. and Japan . Milestone will be the format franchising legal certainty in Indonesia began on June 18, 1997 , by the issuance of Government Regulation ( PP ) No. . 16 of 1997 on Franchising . PP. 16 of 1997 on this franchise has been repealed and replaced by Regulation No. 42 of 2007 on Franchise . Furthermore, other provisions that support the rule of law in business format franchising is as follows ;
Minister of Industry and Trade of Republic of. 259/MPP/KEP/7/1997 Date July 30, 1997 on the Procedure of Registration Provisions Franchise .
Regulation of the Minister of Industry and Trade of Republic of. 31/M-DAG/PER/8/2008 on Franchise Operation
Law no . 14 of 2001 on Patents .
Law no . 15 of 2001 on brands .
Law no . 30 Year 2000 on the Trade Secrets .
Many people are still skeptical with certainty , especially in the field of franchise law in Indonesia . But this time for the legal certainty sought by business format franchise is much better than prior to 1997 . This is evident from the increasing number of legal protection that can protect the franchise business . The development of franchising in Indonesia , particularly in the field of fast food very rapidly . This is possible because we are based entrepreneurs as franchisees ( franchisees ) are required to develop the business through a master franchise it receives by way of searching for or appoint franchisees continued . By using the pyramid system or systems of cells , a business format franchise network will continue to expand . There are several franchisee associations in Indonesia, among others APWINDO ( Franchise Indonesian Employers Association ) , GUARDIAN ( Franchise & License Indonesian ) , AFI ( Indonesian Franchise Association ) . There are several franchise consultants in Indonesia, among others IFBM , The Bridge , Hans Consulting , FT Consulting , Ben Warg Consulting , JSI and others. There are several franchise exhibition in Indonesia which periodically hold roadshows in various regional and national outreach , among others, the International Franchise and Business Concept Expo ( Dyandra ) , Franchise License Expo Indonesia ( Panorama convex ) , Info Franchise Expo ( Neo and Indonesian Franchise Magazine ) .
So , thank you for reading this article. Written and posted by Bambang Sunarno.
sunarnobambang86@gmail.com
author:
http://schema.org/Personal.
https://plus.google.com/105319704331231770941.
name: Bambang Sunarno.
http://primadonablog.blogspot.com/2014/01/did-you-know-about-franchise.html
DatePublished: January 30, 2014 at 19:58

7MHPNPADAEFW

Tag ; Franchise .