Jacob And Kristen Are Parties To A Franchise Agreement

Indonesia`s franchise law takes the unusual step that it is an obligation for the franchisee and not for the franchisee to register the franchise agreement and the disclosure statement.67 Non-registration results in the revocation of the franchisee`s business license.68 Franchise licenses between a foreign franchisee and a master`s franchisee are registered with the Ministry of Commerce. while those between a master`s franchisee and sub-franchisees are registered with regional or communal offices. This has significantly reduced the registration time from 150 days to approximately 30 days, as many of the requests are now delegated to the regional offices.69 The use of the word “imposes” and the phrase “substantially associated” follows the approach found in the United States, Australia and Alberta. Interestingly, there is an element of “support”, as defined in the Korean definition, and that master franchise agreements are explicitly included (as in Alberta) to avoid doubt, avoiding the risk found in Lithuania that master franchises do not fall within the definition. Since a franchise agreement is supposed to reflect the uniqueness of each franchise offering and explain the dynamics of the proposed franchise relationship, copying the agreement from another franchise system is probably the biggest mistake a new franchisee can make. If the franchisee is required to obtain supplies from the franchisee, this is generally mentioned, although the Advertising Act may not explicitly mention this, but would fall under the broad title “Obligations of the franchisee”. Canada`s franchise legislation goes even further, as a franchisee must not only disclose whether the franchisee must source exclusively from the franchisee, but also any discounts from its suppliers on products that are thus resold to the franchisee. In addition, full details regarding the franchisee`s personal involvement must be provided if necessary under the franchise agreement (such as in Brazil, Canada, Malaysia and Vietnam, where this is a separate disclosure point). 41 Article 6 of Decree No 35/2006/ND-CP, adopted by the Government to regulate franchising.

With the exception of U.S., Canadian and Japanese franchise laws, no other disclosure laws mention rights to profits. In Canada and Japan, it is optional for the franchisee to assert such claims in the disclosure document. . . .


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