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
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name: Bambang Sunarno.
http://primadonablog.blogspot.com/2014/01/did-you-know-about-franchise.html
DatePublished: January 30, 2014 at 19:58
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Tag ; Franchise .
