Indonesia restricts franchise expansion with new rules

05/13/2013 | Wall Street Journal, The

Indonesia has implemented new rules that require large franchise chains to take on additional Indonesian partners and purchase 80% of their supplies from local vendors. The new rules, which could affect expansion plans for franchisors such as KFC, Starbucks and 7-Eleven, were enacted in response to an influx of chain stores and are meant to protect smaller Indonesian establishments.

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