Legal Protection of Business Actors in the Election of PT Business Entities at Janji Jiwa Coffee Shop (Jiwa Toast & Kopi) in Depok City

Abstract

The rapid growth of franchise-based coffee shop businesses in Indonesia has increased the importance of legal certainty and legal protection for business actors. One of the coffee shop brands that has successfully expanded through a franchise system is Janji Jiwa (Jiwa Toast & Kopi). In operating a franchise business, the selection of a business entity is a crucial aspect because it is closely related to business legality, legal certainty, and the protection of entrepreneurs. A Limited Liability Company (Perseroan Terbatas/PT) is one of the most commonly used forms of business entities due to its status as a legal entity that provides legal protection to its shareholders. This study aims to analyze the legal protection obtained by business actors through the selection of a Limited Liability Company in the Janji Jiwa (Jiwa Toast & Kopi) franchise business in Depok City. The research employs a descriptive method with a qualitative approach. Data were collected through observation at the Janji Jiwa outlet located in Grand Depok City (GDC), Depok City, as well as through literature review of laws and regulations, books, and relevant academic journals. The findings indicate that the use of a Limited Liability Company provides legal protection in the form of business legality, limited liability for shareholders, protection of personal assets, and greater certainty in establishing legal and business relationships with third parties. Such legal protection is further strengthened through franchise agreements and intellectual property rights protection over the trademark used in business operations. Nevertheless, several challenges remain, including the unequal bargaining position between franchisors and franchisees in franchise agreements, limited legal understanding among business actors, and the potential for legal disputes arising from non-compliance with administrative franchise requirements. Therefore, greater legal awareness and compliance with applicable regulations are necessary to ensure legal certainty and sustainability in franchise business operations.