Franchise Outlet Limitation for Food and Beverage Businesses

The Minister of Trade has issued Regulation No. 07/M-DAG/PER/2/2013 on Franchise Partnership Development for Food and Beverage Businesses (“Regulation”). The Regulation intends to promote the involvement of small-medium enterprises in the franchise industry.

To achieve the abovementioned goal, the Regulation sets a limitation on how many outlets a food and beverage business may own.

Additionally, the Regulation aims to promote the use of domestic goods within the franchise industry in accordance with the Minister of Trade Regulation No. 53/M-DAG/PER/8/2012 on Organizing Franchise Businesses (“MoT Regulation 53/2012”) (See ILB No. 1984).