Beforediscussing about the development of franchise, so we better learn what is franchise. Franchise / Franchising (UK: Franchising; France: Franchise) for honesty or freedom) is the rights to sell a product or service or services. Meanwhile, according to the version of the Indonesian government, which is a franchise is an agreement where one party is given the right to utilize and or use intellectual property rights (IPR) or meeting of businesses characteristic owned by other parties with a return based on the requirements set by the other party within the framework of the provision and or sale of goods and services.

Meanwhile,according to the Franchise Association of Indonesia, franchise is: "A system of distributing goods or services to end customers, where the brand owner (the franchisor) gives rights to individuals or companies to conduct business under the brand name, systems, procedures and ways that predetermined at certain period of time and covering a particular area. "(source: id.wikipedia.org).