Profitable Local Indonesian Franchise Business
Franchise business opens many business opportunities for those who want to start a business. If you are interested in starting a franchise business, you can choose from many brands that are now recognized by the public. Although many franchise businesses or partnership businesses come from outside or internationally, you can also consider local franchise businesses that can also be profitable. Still hesitant about a local franchise business native to Indonesia? You can see the following explanation and variety of local franchises that are also profitable!
History of Franchising in Indonesia
Before knowing the ins and outs of the franchise business in Indonesia, you can also first understand the history of franchising in Indonesia. The franchise business itself is actually not new to the Indonesian business world. That said, businesses with this partnership model have been around since the 1950s. Starting with the entry of motorized vehicles in Indonesia which used a license system in the buying and selling process. After that, the franchise business also developed in the 1970s by still relying on the license system. Observing the success of two countries, namely the United States and Japan in running a franchise business, the government began to issue a legal umbrella with laws governing and protecting the franchise business on June 18, 1997. At that time the government issued Government Regulation (PP) No. 16 of 1997 concerning Franchising. Then the update was carried out by replacing PP No. 16 of 1997 with PP No. 42 of 2007. in addition, several regulations were also issued to maintain the smooth running of the business with the franchise format, such as:
Decree of the Minister of Industry and Trade of the Republic of Indonesia No. 259/MPP/KEP/7/1997 Dated July 30, 1997 concerning Provisions on Procedures for the Implementation of Franchise Business Registration.
Regulation of the Minister of Industry and Trade No. 31/M-DAG/PER/8/2008 on the Implementation of Franchising
Law No. 14 of 2001 concerning Patents.
Law No. 15 Year 2001 on Trademark.
Law No. 30 Year 2000 on Trade Secrets.
In addition, there are also franchise associations such as APWINDO (Indonesian Franchise Entrepreneurs Association), AFI (Indonesian Franchise Association), and WALI (Franchise & License Indonesia) as well as other franchise consultants who can assist franchise business operations in Indonesia.
Advantages of Choosing a Local Franchise Brand
There are many advantages if you choose a local franchise business. One of them is cheaper costs. Usually international franchise businesses will charge higher prices than local franchise businesses. Not only that, choosing a local franchise business is actually about helping the economy, business and community in the local area. You are also clearly helping to run local businesses that can also prosper local residents. In addition, you can also listen to some of the benefits that can be obtained if you choose the following local franchise brands!
The money consumers spend on shopping, dining, entertainment and services stays within the community.
Business taxes go straight back into the community for regional progress and improved public facilities.
Local businesses add to the positive impact by working with other local businesses such as accountants, banks, lawyers, tax services, printers, cleaning, office supplies and more.
Local franchise businesses provide employment opportunities for local residents or in other words, increase employment for local people.
Local franchise businesses will be more likely to provide regional products and services that suit the local community, especially food tastes. In addition, these businesses can provide benefits to local non-profits, and sponsor sports teams and events.
In other words, the diversity of local franchise businesses ensures economic security for communities, with jobs and livelihoods not dependent on a single business owner.
Assortment of Original Indonesian Franchise Businesses
In Indonesia itself, there are several types or kinds of franchise businesses that are commonly run, including the following!
From the name product franchise is a franchise business that offers products to customers. This type of franchise is widely found, especially food and beverage franchises in the form of coffee shops, meatballs, kebabs, fried chicken and others.
Apart from product franchises, there are also types of franchises that offer services or services to their customers such as salons that offer beauty care services, music lessons or others, delivery services, laundry or other franchises that also offer services to the community.
A combined franchise is a franchise that sells or offers both services and products at the same time, for example, a salon that also offers beauty products and also a tutoring center that sells tutoring or training equipment.
It is undeniable that the culinary business is the most developed franchise business in Indonesia. Many local franchises native to Indonesia can be an option if you want to start a franchise business in this field. Some examples of Indonesian culinary franchises include the following:
Kebab Baba Rafi
Es Teler 77
California Fried Chicken
Sabana Fried Chicken
Ayam Gepuk Pak Gembus
Ayam Bakar Mas Mono
Wong Solo Grilled Chicken
Ayam Penyet Surabaya
Nasi Kulit Malam Minggu
Bakso Rusuk Joss
Pecel Lela Lele
Sogogi Shabu & Grill
Tofu Jeletot Taisi
Roti Gemblong Gembul
Apart from food, the beverage franchise business is also a profitable franchise business. Given that people currently love contemporary drinks, there is nothing wrong if you try to do a franchise business in the field of contemporary drinks. Some examples of profitable contemporary beverage franchises include:
Soul Promise Coffee
About Us Chocolate
Beauty franchise businesses are also mushrooming in Indonesia due to the growing popularity of beauty trends. Some salons that offer franchise systems in Indonesia and are also profitable include:
Zaza Salon Muslimah
d’Mutia spa n salon
Beauty Jeff Lite
Alex’s Salon Professional
Tutoring or Training
Tutoring and training is also one of the most popular franchise branches. Some of the tutoring centers that open franchise business opportunities include Primagama, Bimba, Aqila Course, Sinau and also the Ranking tutoring franchise. In addition to subject tutoring, there are also trainings that offer music course franchises including Purwa Caraka Music Studio, Chic’s Music, Calista Music, and Yamaha Music School. These tutoring or training franchises also tend to be easier to run and will be very profitable if managed properly.
Who would have thought that fuel could also be a profitable franchise business. One of the pertamini franchises or fuel sellers that is quite popular in Indonesia is Galaxy Pertamini. Galaxy Pertamini is owned by Pelangi Seimbang selaras founded by Prana Mangun Wicaksana. This business can be profitable especially if it is managed in areas that do not have many gas stations.
Laundry services are also now widely sold in the form of franchises. If you don’t want to run a food business but another franchise business that is also profitable, you can try a business opportunity in the laundry field. Some examples of laundry franchises currently running include SimplyFresh, LaundryKlin, Superwash, Bamboo, Mr Klin, Netto, Melia Laundry and Dry Cleaning, Cleanlite Laundry, Dressed Laundry and others. Make sure you know the profile of each of these businesses if you are interested in purchasing a business package.
Refillable Drinking Water
Refillable drinking water is also a profitable franchise business considering that everyone needs a drink every day. Refillable drinking water is considered more economical so it has many enthusiasts. Some examples of refillable drinking water franchises include Blue Drinking Water Depot, Elim, and Inviro. In addition to buying a business package, if you are interested in running this business, you must also consider several conditions that must be met to ensure the safety of the drinking water being sold.
List of Award-Winning Local Franchises
If you are still confused about what franchise business you can run, you can check out some of the local franchise lists that won awards in 2020 based on Franchise Indonesia magazine.
From the survey conducted by the magazine, there are at least several different categories received by several types of franchises, for example the 2020 Market Leades Awards category where the category is taken from franchises that lead the market with an extensive network and the number of partners and outlets they have. Among them, there are 16 award-winning brands in this category, namely:
Blue Drinking Water Depot
Baba Rafi Turkey Kebab
Mom n Jo
Ayam Bakar Wong Solo
Ayam Penyet Surabaya
Meanwhile, the award winners in the Business Opportunity Market Leader Awards 2020 category include
Auto Clean Waterless.
Apart from these two categories, there are also awards won by franchise brands in The Best to Invest Awards 2020 category including
Ayam Dadar Bandung
Ruang Hati Coffee
Sunday Night Skin Rice
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