Legal Certainty in International Franchising: A Comparative Study between Indonesia and Singapore
), Nur Asiah(2), Safa Nabila Lasabuda(3), Sri Indah Ramadhani(4)
(1) Faculty of Law, Universitas Pelita Harapan, Jakarta, Indonesia
(2) Faculty of Law, Universitas Pelita Harapan, Jakarta, Indonesia
(3) Faculty of Law, Universitas Pelita Harapan, Jakarta, Indonesia
(4) Faculty of Law, Universitas Pelita Harapan, Jakarta, Indonesia
Corresponding Author
Abstract
Introduction: The rapid expansion of international franchises into Indonesia creates complex legal dynamics, especially when foreign entities from developed countries such as Singapore face protectionist regulations in developing countries. One of the central issues that reflects this tension is the policy of limiting the number of foreign franchise outlets to a maximum of 250 outlets. These policies create ambiguity in legal norms, threaten legal certainty, and create potential conflicts between domestic market protections and international commitments within the global trade framework.
Purposes of the Research: This study aims to examine and analyze legal certainty in cross-border franchise agreements, focusing on the comparison of the legal system between Indonesia and Singapore.
Methods of the Research: Normative juridical approaches and comparative methods are used to explore differences in legal structures, the principle of freedom of contract, and the role of the state in regulating franchise schemes in both jurisdictions.
Results of the Research: This study found that Singapore, with its minimalist common law approach, provides a high degree of contractual flexibility for business actors. On the contrary, the Indonesian legal system tends to be interventionist but does not fully guarantee legal certainty due to ambiguity of norms and overlapping regulations. Therefore, this study recommends the importance of harmonization of cross-border regulations in supporting the legal certainty of international franchise agreements.Keywords
DOI
10.47268/sasi.v31i3.3039
Published
2025-09-30
How To Cite
@article{SASI3039,
author = {Aini Iman and Nur Asiah and Safa Lasabuda and Sri Ramadhani},
title = {Legal Certainty in International Franchising: A Comparative Study between Indonesia and Singapore},
journal = {SASI},
volume = {31},
number = {3},
year = {2025},
keywords = {Franchise Agreements; Cross-Country; Legal Certainty, Investment Law; Comparative Studies.},
abstract = {Introduction: The rapid expansion of international franchises into Indonesia creates complex legal dynamics, especially when foreign entities from developed countries such as Singapore face protectionist regulations in developing countries. One of the central issues that reflects this tension is the policy of limiting the number of foreign franchise outlets to a maximum of 250 outlets. These policies create ambiguity in legal norms, threaten legal certainty, and create potential conflicts between domestic market protections and international commitments within the global trade framework.Purposes of the Research: This study aims to examine and analyze legal certainty in cross-border franchise agreements, focusing on the comparison of the legal system between Indonesia and Singapore.Methods of the Research: Normative juridical approaches and comparative methods are used to explore differences in legal structures, the principle of freedom of contract, and the role of the state in regulating franchise schemes in both jurisdictions.Results of the Research: This study found that Singapore, with its minimalist common law approach, provides a high degree of contractual flexibility for business actors. On the contrary, the Indonesian legal system tends to be interventionist but does not fully guarantee legal certainty due to ambiguity of norms and overlapping regulations. Therefore, this study recommends the importance of harmonization of cross-border regulations in supporting the legal certainty of international franchise agreements.},
issn = {2614-2961}, pages = {283--295} doi = {10.47268/sasi.v31i3.3039},
url = {https://fhukum.unpatti.ac.id/jurnal/sasi/article/view/3039}
}
Adcock, A., Ing, C., Santaniello, D., Cohen, J., Oeurn, M., Mol, D., ... & Piemwichai, W. “An Overview of Franchising Law in Southeast Asia”. Franchise Law Journal 41, no 2 (2021): 247-268.
Adri, A. (2025). 350 Brands Enliven the Franchise Exhibition at ICE BSD. https://www.kompas.id/artikel/ifra-2025-buka-peluang-wirausaha-dan-rambah-pasar-luar.
Alon, I., Apriliyanti, I. D., & Henríquez Parodi, M. C. (2021). A systematic review of international franchising. Multinational Business Review 29, no. 1 (2021): 43-69.
Arif, M. E., Anggraeni, R., & Ayuni, R. F. Franchise Business. Malang: Brawijaya University Press, 2021.
Borowski, M. Gustav Radbruch’s Theory of Legal Obligation. In Theories of Legal Obligation (pp. 99-122). Cham: Springer International Publishing, 2024.
Chan, D., & Teo, J. Y. “Re-Formulating the Test for Ascertaining the Proper Law of An Arbitration Agreement: A Comparative Common Law Analysis”. Journal of Private International Law 17, no, 3 (2021): 439-472.
Directory of Decisions of the Supreme Court of the Republic of Indonesia. (2024). Supreme Court Decision Number 941 B/Pdt.Sus-Arbt/2024.
Edwards, P. Hans Kelsen, “International Law and The ‘Primitive’legal Order”. Jurisprudence 1, no. 30 (2025).
Flanagan, B., & Hannikainen, I. R. “The folk concept of law: Law is Intrinsically Moral”. Australasian Journal of Philosophy, 100, no. 1 (2022): 165-179.
Grebieniow, A. “Principles of Asian Contract Law at the Crossroads of Standardization and Legal Pluralism”. Asian Journal of Law and Society 10, no. 2 (2023): 306-338.
Guo, S. L. (2023). “When Less May Be More: A Dyadic View of Franchise Contracts”. Long Range Planning, 56, no. 4 (2023): 102343.
Hadi, S., & Michael, T. Hans Kelsen's Thoughts About The Law And Its Relevance To Current Legal Developments. Technium Soc. Sci. J., 38, (2022): 220.
Kristianto, F., & Gracia, F. “Franchising in the Form of Partnership”. Indonesian J. Int'l L., 19, (2021): 641.
Mahadewi, E. P. International Marketing. Sonpedia Publishing Indonesia, 2025.
Noor, T. “The Comparative Law of Franchise Agreements in Realizing Protection Between Parties”. JPH, 10, no. 2 (2023).
Oktaviani, N. M. A. D. Franchising as A New Opportunity in the World of Entrepreneurship. Vaisya: Journal of Hindu Economics 3, no. 1 (2024): 14-26.
Sales, P. “Certainty and Flexibility in the Law”. Judicial Review 1, no 12 (2025).
Sugianto, F., Tanaya, V., & Michael, T. A Brief Comparative Study between Indonesian Contract Law Under Indonesian Civil Code and Singapore Contract Law. Journal of International Trade, Logistics and Law, 9, no. 2 (2023): 132-143.
Tan, S. H. “Radbruch’s Formula Revisited: The Lex Injusta Non Est Lex Maxim in Constitutional Democracies”. Canadian Journal of Law & Jurisprudence, 34, no. 2 (2021): 461-491.
Wardhani, L. T. A. L., Noho, M. D. H., & Natalis, A. (2022). “The adoption of various legal systems in Indonesia: an effort to initiate the prismatic Mixed Legal Systems”. Cogent Social Sciences 8, no. 1 (2022): 2104710.
Yumetri Abidin, Y. Book: Introduction to International Economics, 2022.
Zulkifli, S., & Noor, T. “Reconstructing Legal Protection Regulations for Parties in Franchise Agreements Based on Dignified Justice”. Khazanah Hukum, 6, no. 3 (2024): 223-233.
: 23 times
Download : 7 times
| Dublin Core | PKP Metadata Items | Metadata for this Document | |
| 1. | Title | Title of document | Legal Certainty in International Franchising: A Comparative Study between Indonesia and Singapore |
| 2. | Creator | Author's name, affiliation, country | Aini Nurul Iman; Faculty of Law, Universitas Pelita Harapan, Jakarta; Indonesia |
| 2. | Creator | Author's name, affiliation, country | Nur Asiah; Faculty of Law, Universitas Pelita Harapan, Jakarta; Indonesia |
| 2. | Creator | Author's name, affiliation, country | Safa Nabila Lasabuda; Faculty of Law, Universitas Pelita Harapan, Jakarta; Indonesia |
| 2. | Creator | Author's name, affiliation, country | Sri Indah Ramadhani; Faculty of Law, Universitas Pelita Harapan, Jakarta; Indonesia |
| 3. | Subject | Discipline(s) | |
| 3. | Subject | Keyword(s) | Franchise Agreements; Cross-Country; Legal Certainty, Investment Law; Comparative Studies. |
| 4. | Description | Abstract | Introduction: The rapid expansion of international franchises into Indonesia creates complex legal dynamics, especially when foreign entities from developed countries such as Singapore face protectionist regulations in developing countries. One of the central issues that reflects this tension is the policy of limiting the number of foreign franchise outlets to a maximum of 250 outlets. These policies create ambiguity in legal norms, threaten legal certainty, and create potential conflicts between domestic market protections and international commitments within the global trade framework.Purposes of the Research: This study aims to examine and analyze legal certainty in cross-border franchise agreements, focusing on the comparison of the legal system between Indonesia and Singapore.Methods of the Research: Normative juridical approaches and comparative methods are used to explore differences in legal structures, the principle of freedom of contract, and the role of the state in regulating franchise schemes in both jurisdictions.Results of the Research: This study found that Singapore, with its minimalist common law approach, provides a high degree of contractual flexibility for business actors. On the contrary, the Indonesian legal system tends to be interventionist but does not fully guarantee legal certainty due to ambiguity of norms and overlapping regulations. Therefore, this study recommends the importance of harmonization of cross-border regulations in supporting the legal certainty of international franchise agreements. |
| 5. | Publisher | Organizing agency, location | Faculty of Law, Universitas Pattimura |
| 6. | Contributor | Sponsor(s) | |
| 7. | Date | (YYYY-MM-DD) | 2025-09-30 |
| 8. | Type | Status & genre | Peer-reviewed Article |
| 8. | Type | Type | |
| 9. | Format | File format | |
| 10. | Identifier | Uniform Resource Identifier | https://fhukum.unpatti.ac.id/jurnal/sasi/article/view/3039 |
| 10. | Identifier | Digital Object Identifier | 10.47268/sasi.v31i3.3039 |
| 11. | Source | Title; vol., no. (year) | SASI; Volume 31 Issue 3, September 2025 |
| 12. | Language | English=en | en |
| 13. | Relation | Supp. Files | |
| 14. | Coverage | Geo-spatial location, chronological period, research sample (gender, age, etc.) | |
| 15. | Rights | Copyright and permissions | Copyright: Authors who publish their manuscripts in this Journal agree to the following conditions: 1. The copyright in each article belongs to the author, as well as the right to patent. 2. Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal. 3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work. 4. Authors have the right to self-archiving of the article (Author Self-Archiving Policy)
License: The SASI Journal is disseminated based on the Creative Commons Attribution-NonCommercial 4.0 International license terms. This license allows anyone to copy and redistribute this material in any form or format, compose, modify, and make derivatives of this material for any purpose. You cannot use this material for commercial purposes. You must specify an appropriate name, include a link to the license, and certify that any changes have been made. You can do this in a way that is appropriate but does not imply that the licensor supports you or your use.
|
Copyright (c) 2025 Aini Nurul Iman, Nur Asiah, Safa Nabila Lasabuda, Sri Indah Ramadhani
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Email this article 
