Today, franchise business is becoming more popular since the concept was first introduced in Indonesia in 1950s. There are many franchises offering various products. Franchises are generally classified into foreign franchises and domestic franchises. In Indonesia, the most popular and thriving franchises come from the food industry. Kebab Turki, Baba Rafy, Mister Burger, McDonald, KFC, Tela-Tela and Jamur Krispi are a few examples. There are franchises from other industries too, though not as big as those in the food industries, such as  computer software, web hosting, medical, courier and even minimart franchises.

While knowing the law is important, it does not guarantee success for franchise business. Other knowledge such as knowing the market and target consumer as well as business location is just as vital.

Just like any other businesses, franchise has a varied market depending on the business industry and the business type. The biggest franchise market in Indonesia is food franchise. Indonesians from all age groups generally love eating and trying new food. Adults, teenagers and children can be the target consumers.

Location plays a role in the success of franchise. Fast food is usually more popular in the capitals of the provinces such as Bandung, Surabaya and Jakarta.

In general, franchise business offers a number of benefits and convenience. Franchise holders do not need to build the brand or come out with operational or supply chains. They just need to follow the existing systems and maintain the brands. Since bigger brands, which are open for franchise, already had a pool of loyal consumers,  franchises have lower risk of business failure.

That being said, franchise business is not risk free. Franchises too may face tough competition from market saturation of the brands. So, franchise holders must be smart in giving added value services to the existing brands such as by giving more personalized services or more unique outlet ambience that will make people adore that particular franchise outlet as oppose to other shops found in every other street corners.

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