The franchise model is a popular business model in Indonesia as it holds a number of advantages compared to starting a business from scratch. When walking inside a shopping mall or on the busy streets of Indonesian urban and suburban areas one can see various examples of the franchise model in action.

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Last February, the Indonesian government, through its Ministry of Trade, issued new rules with regard to Indonesia's franchise sector. This new regulatory framework - formulated in Ministry of Trade Regulation No. 7 Year 2013 on Partnership Development in Franchise Business Services for Food and Beverages (Permendag Nomor 7) - will have an impact on Indonesia's food and beverage services as limitations are set on the amount of outlets.

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