THE CONCEPT OF SHARIA-COMPLIANT FRANCHISING FROM THE PERSPECTIVE OF FIQH MUAMALAH: A LITERATURE REVIEW

Abstract

The development of the franchise business model has become an important phenomenon in the modern economy because it is considered capable of improving business efficiency, expanding business networks, and reducing risks for entrepreneurs. However, from an Islamic perspective, the franchise system needs to be examined for its compliance with the principles of fiqh muamalah to ensure that it does not contain elements prohibited by Sharia. This study aims to examine the concept of Sharia-compliant franchising from the perspective of fiqh muamalah through a literature review approach. The research method used is a literature study by analyzing classical and contemporary fiqh muamalah books, scholarly journals on Islamic economics, and fatwas issued by the National Sharia Council of the Indonesian Council of Ulama (DSN-MUI). The results indicate that franchise practices can be permissible in Islam based on the fundamental principles of muamalah, provided that they fulfill the pillars and conditions of contracts and are free from elements of riba, gharar, maysir, tadlis, and zulm. Sharia-compliant franchising can be constructed through a combination of ijarah, bai’, syirkah, and wakalah contracts arranged in a transparent and fair manner. This study concludes that Sharia-compliant franchising is a legitimate and relevant business innovation in Islamic economics when implemented in accordance with the principles of justice, trustworthiness, and public benefit (maslahah).