T

he ever popular annual Franchise and License Expo Indonesia officially opened Friday at the Jakarta Convention Center (JCC).

In its 10th year, organizers hoped this year’s sales turnover would rise by at least 15 percent, with most of the sales coming from the food and beverage sector.

Hengky Adikusuma and his friend Henry Pangemanan were among visitors searching for profitable F&B franchises at the expo, which will run through Sunday. “I’m very interested in one particular coffee franchise. The brand is well-known and the franchise fee suits my budget,” Hengky said.

 According to Henry, he is more inclined to choose the food and beverage business because he believes it will always have customers.

 More than 80 brands are featured in the three-day expo by Reed Panorama Exhibitions. About 42 percent of the brands come from the food and beverage sector. They include: coffee, ice cream, cream puffs, fried chicken, kebab and noodle products.

Indonesia Franchising and Licensing Society (WALI) chairperson Levita Supit said the food and beverage sector had always been dominant in the franchise business, accounting for more than 35 percent of the total market.

PT Campina’s ice cream booth attracted crowds of visitors on the first day of the expo. The ice cream maker offers its Campina Scoop Counter partnership at Rp 10 million (US$1,044) with monthly net profits estimated to range from Rp 1 million to Rp 4.45 million.

“We have had visits from people interested in becoming our partners. We will hold a separate business presentation after the expo ends to provide further details on the business,” Campina trade marketing channel officer Siswanto said.

Campina targets to reach 475 partners by the end of this year, a 25 percent increase from 2011. As of September 2012, the company has 425 partners, mostly in Java and Bali. On average, Siswanto added, the company garnered Rp 750 million per month from the partnerships.

According to Levita, there are more than 2,000 franchise and partnership brands offered in Indonesia at the moment. The industry expects to gain Rp 115 trillion in sales this year, a 15 percent increase from last year, she said.

Commenting on the upcoming government plan to limit company-owned franchise units, she said that WALI hoped the new regulation would be implemented on future franchise agreements only.

Indonesian Chamber of Commerce and Industry (Kadin) chairman of national committee on franchise and license, Amir Karamoy, said forcing companies to let go of some of the franchise units to comply with the limit would be bad for business.

“Let the companies operate their current franchise units even if the number exceeds the limit. Some of these companies are publicly listed. We are worried that their shares will fall if they are forced to do so,” he said. (tas)