Indonesian Franchising (Local)

The increasing development of Indonesia’s economy and, in particular, the spending power of its growing middle class, have meant that franchising, both domestic and international, has expanded rapidly as a method of conducting retail investment and retail sales both online and offline.

With a franchise, you have someone who cares as much about the business name and image as you do because they own it.


The unit model is the most well known model of franchising and the franchisor will usually expect only a percentage return from its franchisees, but will retain control over product development and branding. There are three main types of Local Franchises, broadly broken into manual and executive in the way they operate.

Retail Franchises

This type of franchise will usually be owner operated from a retail outlet. Retail franchises will require the right location and customer base in order to create the sales of the products or services with good customer service through their employees. The retail type of franchise will often require significant investment with rent and design costs to create the image of the brand chosen.

Single Operator Franchises

This type of franchise will involve a single operator selling products or providing a service within a specific trade or industry. In this type of franchise the franchisor will provide the brand name or trademark together with relevant equipment, uniforms and marketing material in order for the franchisee to sell the products or deliver the services to an established standard and reputation. With smaller levels of investment, this type of franchise is suitable for home based business, mobile operators or smaller start up businesses.

Business to Business Franchises

The type of franchisee in these businesses will be out negotiating the provision of services or products to other business and will not be directly in touch with consumers. For this type of franchise premises may often be required for the production side of the business, such as printing, communications, or sign and design manufacture and it can be called partnering franchises

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