Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


Legality and Justice of the Existence of the Franchise Agreement in Indonesia

Author(s): Ery Agus Priyono, R. Benny Riyanto, Joko Priyono

A franchise agreement, like a legal document, deserves to fulfill three elements, namely justice, benefit and legal certainty. This paper aims to reveal why the aspect of justice is not receiving the portion as the other two aspects. The approach used in this study is philosophical normative approach. The conclusion of this study is that the contents of the franchise contract document by domestic and foreign parties on the one hand, show the prominence of the aspect of legal certainty, then in the aspect of benefit, while on the other hand, the aspect of justice does not get the “portion” it should be. Justice is not achieved for the parties, especially franchise recipients, due to the unbalanced bargaining position of the franchisor when compared to the bargaining position of the franchisee. This has an impact on the contents of the contract which is fully drawn up by the franchisor, which of course tends to provide as much benefit as the franchisor.

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