| No. |
Breach of contract (article 8) |
Legal effect (article 9) |
Completion (article 10) |
| 1. |
If the franchisee does not pay Royalty Fee to the franchisor |
Obliged to pay the unpaid Royalty Fee to the franchisor no later than one month after the termination of the franchise agreement |
The legal completion between the franchisor and the franchisee is done by peace and kinship in order to reach a consensus. If this completion is not achieved, then pursued through legal channels in accordance with the legal mechanism in Indonesia. |
| 2. |
If the franchisor infringes, sells or deflects and the Intellectual Property Rights of the legitimate franchisor |
Compulsory to pay compensation in accordance with applicable law |
| 3. |
The franchisor does not run the standard operating procedure (SOP) that the franchisor has assigned to the franchisor |
To terminate the agreed franchise agreement and all loss of franchisees / franchisee's investment is subject to full franchise / franchisee's risk |
| 4. |
A franchisor builds, runs a similar business, has similarities or can create competition with a franchise granted and owned by the franchisor |
To terminate the agreed franchise agreement and all loss of franchisees / franchisee's investment is subject to full franchise / franchisee's risk |
