Date: Wed, 31 Dec 1997 21:19:40 GMT Server: NCSA/1.5.2 Last-modified: Wed, 22 Oct 1997 15:37:58 GMT Content-type: text/html Content-length: 6119 Franchising





International Franchising




Clients List

Microsoft, T.G.I. Fridays, Burger King, Wal Mart, Marks and Spencer, Hagen Daz, Donut Inn, Pizzeria Uno, Mothercare, Princeton Review, The Outback, Johnny Rockets and others.


Bring Your Franchise to Indonesia

Indonesia is currently undergoing tremendous growth in the area of international franchising. The increasing affluence of the expanding middle class has resulted in an almost insatiable taste for western style franchises in several market sectors. For example, MacDonald's fast food chain has expanded from 1 store to over 20 stores in Jakarta alone in the last 4 years.


Enjoy Expanding Territories

With a population of over 200 million people, Indonesia has a virtually unlimited and untapped market potential. Local partners are eager to take your franchise to local, regional and/or national levels.



High Profits are Within Your Reach

With local labor costs and building costs far below western norms coupled with limited or non-existant market competition, franchisors can expect profit margins to exceed levels attained in their home countries.



Our Experience will multiply your Rewards

Alfida Associates, working in conjunction with the Indonesian law firm of Makarim & Taira S., has extended experience in bringing international franchises to the Indonesian marketplace. Some well known franchisors assisted include: Microsoft, T.G.I. Fridays, Burger King, Wal Mart, Marks and Spencer, Hagen Daz, Donut Inn, Pizzeria Uno, Mothercare, Princeton Review, The Outback, Johnny Rockets and others.


Notes:

Although franchising is relatively new in Indonesia, it is rapidly becoming a popular business approach for both U. S. and Indonesian companies. Franchises facilitate the transfer of know-how and managerial expertise to Indonesian companies while simultaneously allowing a U.S. company to quickly establish a presence in the country.

Under a typical franchising agreement, the franchisor receives royalties and fees as stipulated in the contract. In exchange, the franchisee has the right to use (and manufacture) copyrighted, patented or service marked materials identifying the enterprise. The franchisor typically provides training and organizational guidance in return for a guarantee that the franchisor will follow these operational directions.

The range of products and/or services organized or operated under a specific franchising agreements varies. Franchising agreements in Indonesia are covered under the general contractual law of the country. They generally confer a status of exclusivity for Indonesia and may prohibit sub-franchise agreements with third parties.

To date, franchising has been dominated by the fast food restaurant market. However, non-restaurant services markets, such as copying/printing, beauty salons, and temporary employee services are becoming increasingly common.


DIRECT MARKETING

Currently, Indonesian law does not permit a foreign firm to market its products directly to their customers, with the exception of specific products sold directly to government agencies. In those cases, specific approval for direct approval must be obtained by the purchasing entity. All other products are marketed through Indonesian firms, as agents or distributors. Foreign firms can be involved primarily through the assignment of foreign technical representatives to the local firm.



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