FRANCHISE DISPUTE RESOLUTION THROUGH INTERNATIONAL ARBITRATION Ni Nyoman Muryatini, Anak Agung Sagung Laksmi Dewi , Kade Richa Mulyawati
Universitas Warmadewa
Abstract
Franchising appears a method of distribution of products and services that enables an independent entrepreneur (the franchisee) to acquire rights from a parent company (the franchisor who operates a network of outlets) to market products or services under its brand name and to adopt its business practices. The concept of resolution of franchise dispute is very urgent to be scientifically researched and analyzed considering that many business actors lack the knowledge of business dispute resolution through arbitration. Arbitration is regulated in the Law of the Republic of Indonesia Number 30 of 1999 concerning Arbitration and Alternative Dispute Resolution. To date, the said law has not been reconstructed, although there are several provisions that are no longer relevant and no longer aligned with business developments in Indonesia. The issues studied in this research include: (i) How is the legal relationship between a franchisor and a franchisee and (ii) How are the disputes of franchise business resolved through international arbitration? The research uses the method of normative research. The type of the data used is secondary data - data that originate from library research, that is to say, data collected not directly from the first source but from data that have been documented in the form of legal materials. Once collected, these data were analyzed using descriptive and argumentative techniques. This research finally reveals the legal relationship between franchisors and franchisees and how franchise business disputes are resolved through international arbitration.
Keywords: franchise dispute, international arbitration
