The Legal Aspects of Franchise in Indonesia

• Autor(a) principal: Nasution, Rahmi Jened
• Data de Publicação: 2018
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Economic Analysis of law Review
• Texto Completo: https://portalrevistas.ucb.br/index.php/EALR/article/view/9764
• topic: investment; franchise; Mc Donald; legal aspects

McDonald's was founded in 1940 and entered into Indonesia in 1991. At that time the Master franchise rights of the fast food business was given to Bambang Rachmadi. Bambang Rachmadi controls McDonald's franchise rights and controls thirteen outlets in Indonesia. At that time there was no regulation governing the franchise business. There was no law and regulation for this cooperation.On the basis of the provision of PP. 20/1994, then in its development and possibly as an expansionary strategy of the franchise with the brand of the letter M with this yellow color, then in 1994 it was between McDonald's center (ie through its parent company MIPCO) with Bambang Rachmadi forming a new joint venture named PT . Bina Nusa Rama (hereinafter abbreviated as BNR).BNR is a cooperation between PT. Sumber Rezeki (another company owned by Bambang Rachmadi) with MIPCO itself through its affiliated company called International Development Services Inc. (hereinafter abbreviated as IDS). BNR own capital business comes from loans. Ninety percent of the loan is an intercompany loan from MIPCO. The remaining ten percent comes from commercial banks. For nearly fourteen years operating in Indonesia went well and McDonald's outlets now number 116 (one hundred and sixteen) outlets.  In the  early 2009 there  was a dispute between the two parties.RM party sues BNR and other parties because they feel aggrieved due to the transfer of all assets of BNR in the form of 97 (ninety seven) outlets (along with its land and building) and its management rights to PT. Rekso National Food (hereinafter abbreviated as RNF). In addition, RNF, a subsidiary of Rekso Group, the parent company of PT Sari Sosro Teh Sosro producer, has signed a Master Franchise Agreement with MIPCO which giveslicense to operate all restaurants previously operated by PT Bina Nusa Rama and open new restaurants throughout Indonesia.