1.      In the franchisee trademark authorization agreement, the trademark owner grants trademark rights to the franchisee (not the trademark transfer), allowing them to use the trademark for business operations. The franchisee is allowed to use the trademark on products/services for a certain period of time, such as: the use of the trademark name for services or products, production processes, human resource management, and financial management. The franchisee pays a certain amount of funds from the business profits.

2.      The franchisee trademark authorization agreement must be in Indonesian and signed in person with a notary.

3.      The franchisee trademark authorization agreement for foreign franchisees must include the trademark’s protection period. If the trademark’s validity period is less than 2 years, the agreement’s validity cannot exceed 2 years. Once the franchisee trademark authorization expires, the franchisee must reapply.

4.      Registering the trademark authorization agreement with the Directorate General of Intellectual Property (DJKI) under the Ministry of Law and Human Rights is important for both the franchisor and the franchisee, because according to the trademark authorization agreement, the franchisee must pay the franchise fee, produce, and maintain the appropriate quality standards for the goods/services.

5.      If any of the following conditions occur, the franchisor cannot make a trademark licensing agreement with the franchisee:

a.      The trademark protection period has expired

b.      The trademark has been cancelled