IMPLEMENTATION OF LEGAL PRINCIPLES IN FRANCHISE CONTRACTS (CASE STUDY ON FRANCHISE FOOD AND BEVERAGE IN MEDAN CITY)

Muhammad Hamizan, Yassin Azhim Rantissi, Rifqi Ananda, Dedek Ardiansyah, Uswah Hasanah

Abstract


This research analyzes the implementation of legal principles in franchise contracts in food and beverage (F&B) franchises in Medan City. The legal principles studied include freedom of contract, consensualism, good faith, pacta sunt servanda, and balance of rights and obligations. The method used is descriptive qualitative with data collection through interviews and analysis of franchise contract documents. The results show that freedom of contract is often limited by clauses that are more favorable to the franchisor. The principle of good faith has not been fully implemented, especially in the aspect of transparency of costs and obligations of each party. In addition, there are still differences in the level of compliance with franchise regulations, depending on the legal understanding of business actors. Dispute resolution is generally done through negotiation, but in some cases it goes to legal channels. In conclusion, although business law principles have been adopted in franchise contracts, there are still gaps in their implementation. Therefore, stricter regulations and increased legal understanding for franchise business actors are needed in order to create fairer and more sustainable business relationships.


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References


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DOI: https://doi.org/10.3059/insis.v0i0.22817

DOI (PDF): https://doi.org/10.3059/insis.v0i0.22817.g12787

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