Individual Franchise Agreement Template for Indonesia

The Individual Franchise Agreement serves as the primary legal instrument for establishing and governing franchise relationships in Indonesia. This document is essential when a franchisor wishes to grant franchise rights to a single franchisee for operating a business using the franchisor's system, trademarks, and intellectual property. The agreement must comply with Indonesian franchise regulations, particularly Government Regulation No. 42 of 2007 and Minister of Trade Regulation No. 71 of 2019, which require specific disclosures, registration with the Ministry of Trade, and adherence to local content requirements. The document includes detailed provisions for operational standards, quality control, training, support services, fees, and territory rights, while addressing unique aspects of Indonesian business law and practice. It's particularly important that the Individual Franchise Agreement includes all mandatory provisions required by Indonesian law while protecting both parties' interests and ensuring sustainable business growth.

1. Parties: Identification of the franchisor and franchisee, including complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the franchise system, and acknowledgment of franchisor's ownership of the system

3. Definitions: Comprehensive list of defined terms used throughout the agreement

4. Grant of Franchise: Specific rights being granted, territory limitations, and exclusivity provisions

5. Term and Renewal: Initial term of the agreement and conditions for renewal

6. Franchise Fees: Initial franchise fee, ongoing royalties, advertising contributions, and payment terms

7. Franchisor's Obligations: Training, support, operations manual, ongoing assistance, and other services provided by franchisor

8. Franchisee's Obligations: Operational standards, compliance requirements, reporting obligations, and maintenance of standards

9. Intellectual Property Rights: Use of trademarks, trade secrets, and other intellectual property

10. Marketing and Advertising: Marketing requirements, advertising fund contributions, and local marketing obligations

11. Training and Support: Initial and ongoing training requirements, technical support provisions

12. Quality Control: Standards maintenance, inspection rights, and compliance requirements

13. Records and Reporting: Financial records, reporting requirements, and audit rights

14. Transfer and Assignment: Conditions for transfer of franchise rights and franchisor's right of first refusal

15. Termination: Grounds for termination, cure periods, and consequences of termination

16. Post-Termination Obligations: Obligations after agreement ends, including non-compete and confidentiality

17. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures

18. Governing Law: Specification of Indonesian law as governing law and jurisdiction

19. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments