Manuscript Title

APPLICATION OF THE PRINCIPLE OF PROPORTIONALITY TO FRANCHISE AGREEMENTS 

 

Author(s)

Ilham Salahudin, Achmad Busro,Eri Agus Priono

 

DOI Number: DOI: 10.5281/zenodo.10183479

 

Published: 15-05-2025

 

About The Author(s):

1. Ilham Salahudin - Doctoral Program in Law, Faculty of Law, Diponegoro University, Jl. Prof. Soedarto, SH., Tembalang, Semarang.

2. Achmad Busro - Lecturer, Doctoral Program in Law, Faculty of Law, Diponegoro University, Jl. Prof. Soedarto, SH., Tembalang, Semarang.

3. Eri Agus Priono - Lecturer, Doctoral Program in Law, Faculty of Law, Diponegoro University, Jl. Prof. Soedarto, SH., Tembalang, Semarang.

 

 

Abstract

The purpose of this study is to analyze: 1) Does the franchise agreement meet the principle of proportionality in the standard contract?2) How can the principle of proportionality in the franchise agreement be a solution in minimizing the problems caused by the franchise agreement and legal protection for the parties?. This research is a type of normative juridical research with a legislative approach, a conceptual approach, and a case study. The results of the study show that: 1) The proportionality of the exchange of rights and obligations can be observed from the substance of the contract clauses agreed upon by the parties. Clauses that contain the principle of proportionality in the franchise agreement are found in the sections: Fee and royalty clause, Supervision clause (quality control product and management), Clause on the use of materials or franchisor products (tie in clause), Clause on exclusive marketing areas, Clause on confidentiality 2) The principle of proportionality guarantees equality of rights and freedom in determining/regulating the proportion of rights and obligations of the parties took place fairly. In the implementation of the contract, the principle of proportionality guarantees the realization of the distribution of the exchange of rights and obligations according to the agreed proportions to the parties. 

 

Keywords

Usability, Application, Principles, Proportionality, Agreement, Franchise

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