Franchising Made Easy: Classifications Redefined, Criteria Simplified

In response to the dynamic growth and development of franchise businesses across Indonesia, the government is aiming to put measures in place that are capable of ensuring business fairness and legal certainty during the organization of said franchise businesses through the issuance of Regulation of the Government No. 35 of 2024 on Franchises (“Regulation 35/2024”). Furthermore, the provisions set out under Regulation 35/2024 also aim to promote business partnerships between the franchise owners and micro-, small- and medium-scale enterprises (Usaha Mikro, Kecil dan Menengah – “UMKM”).[1]