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Franchise matters in Malang include reviewing franchise offers, preparing or negotiating agreements, and checking registration and business-permit requirements. The process often involves both national rules and local steps for the premises and business activities.
Malang City and Malang Regency are separate local jurisdictions. A business in either area may need to deal with the relevant local licensing office, while franchise registration is handled through Indonesia’s national licensing system.
Before committing, check whether the proposed arrangement meets Indonesia’s franchise requirements and whether the business has the required registration. A lawyer can also identify who is responsible for trademarks, training, supplies, operating standards, and ending the agreement.
Government Regulation No. 35 of 2024 on Franchising is the current central regulation specifically governing franchise arrangements. It was promulgated on 2 September 2024 and replaced Government Regulation No. 42 of 2007. It sets requirements concerning franchise criteria, disclosure, agreements, and franchise registration.
Law No. 7 of 2014 on Trade, as amended by Law No. 6 of 2023 on the Enactment of the Job Creation Regulation in Lieu of Law, provides the broader trade-law framework. The applicable provisions should be read together with Government Regulation No. 35 of 2024.
Law No. 20 of 2016 on Trademarks and Geographical Indications, effective 25 November 2016, governs trademark protection relevant to franchise brands. A franchise agreement should clearly address the right to use the mark and the limits of that permission.
Business licensing is also processed through Indonesia’s risk-based licensing system. Requirements can depend on the business activity, premises, and location, so confirm current requirements with the relevant local office in Malang City or Malang Regency.
Legal advice is not automatically required to sign, but a review can reveal unclear fees, restrictive territory terms, renewal conditions, and termination risks. It is especially useful before paying a deposit or making a long-term lease commitment.
A franchise is a business arrangement based on a distinctive business system and the use of business rights, such as a brand, under an agreement. The arrangement must satisfy the applicable legal criteria; calling a contract a “franchise” does not by itself establish that it qualifies.
Franchise registration requirements apply under Government Regulation No. 35 of 2024, with the process connected to the national licensing system. The specific registration responsibility and documents depend on the party’s role and the arrangement, so verify the current process before operating.
Not every business is eligible to franchise. The business must meet the regulatory criteria, which include having a business system, a proven business record, and protected intellectual property, among other requirements.
There is no reliable single timeline for every application because completion depends on the documents, business details, and applicable licensing process. Allow time to correct inconsistencies and confirm the current procedure through the national system or the relevant licensing office.
There is no standard legal-fee tariff for private franchise advice. Fees depend on the work, such as a one-time contract review, negotiation, registration support, or ongoing dispute assistance, so request a written scope and fee arrangement.
No. Franchise registration concerns the franchise arrangement, while business licensing covers the business activity and its operating requirements. An outlet may need both, along with any premises-related approvals that apply to its location.
They are separate local jurisdictions, so the relevant local office depends on where the business premises are located. National franchise and business-licensing rules still apply, but local administrative steps may differ.
You can propose changes, although the franchisor may decline them. Focus on practical terms such as territory, fees, supply obligations, performance targets, renewal, transfer, and termination.
Check the agreement’s notice, cure, and dispute-resolution provisions before taking action. Keep payment records and relevant messages, and obtain legal advice promptly because missed contractual deadlines can affect available options.
An overseas template may not address Indonesian franchise, trade, licensing, and intellectual-property requirements. Have it reviewed for Indonesian law, local operating needs, and clear rules on governing law and dispute resolution.
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The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
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