Finding a master franchisee in Indonesia

What the regulation asks of a master franchisee

• A master franchisee (pemberi waralaba lanjutan) must hold its own STPW, applied for through OSS, as must every sub-franchisee. Secondary · Tilleke & Gibbins on PP 35/2024, 2024-10-01
• A master franchisee that sub-franchises must give each prospective sub-franchisee a prospectus in Bahasa Indonesia at least 14 calendar days before signing. Secondary · Linklaters, 10 things on PP 35/2024, 2024-10-04
• If the master franchisee loses its STPW through revocation, it cannot reapply for five years, so a partner's compliance record matters as much as its capital. Secondary · Tilleke & Gibbins on PP 35/2024, 2024-10-01

Vetting checklist

Our checklist for every master franchise candidate, used across Southeast Asia:

1. Capital beyond the fee: ask for proof of funds that covers the master fee, the first three to five units and 18 months of head-office running costs. A candidate who can only fund the fee will fund the first stores from sub-franchise sales, which is where most master deals break.
2. Operating track record in the same category: someone who already runs multi-site food service or retail in the country knows rents, staffing and suppliers. Ask for the unit list, opening dates and one year of store-level profit and loss.
3. A development schedule they wrote themselves: the candidate, not the franchisor, should propose the store-opening schedule by year and city. Compare it with what they have opened for other brands in the past.
4. Real estate access: who negotiates leases, with which mall operators, and on what terms. In most Southeast Asian cities the site pipeline decides the first two years more than the brand does.
5. Conflicts of interest: list every brand the candidate or their family holds. A competing franchise in the same category is a reason to walk away, or at least to write a non-compete into the agreement.
6. Who will run it day to day: meet the general manager, not only the investor. Ask whether they will attend your training in the home market and for how long.
7. Legal entity and licences: confirm the company that will sign, its shareholders, and that it can legally hold the business licence, import ingredients and pay royalties abroad. Each country guide explains the local rules.
8. References you call yourself: speak to at least two franchisors the candidate has worked with, and one landlord.

Next step

When the shortlist is ready, the FranX Rights Board shows which master and area rights are open by country, with the brand identity hidden on the public listing.

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