The Profit-Sharing Method in Franchise Business from the Perspective of Islamic Economic Law

Abstract

Franchise business is one of the rapidly growing business models in Indonesia, in line with the increasing competition in global trade. This study aims to analyze the profit-sharing method in franchise businesses from the perspective of Islamic economic law. The research method used is normative juridical, which focuses on the study of literature or secondary data related to regulations and legal provisions governing franchising, as well as relevant sharia principles in the implementation of franchise agreements. The research findings show that a franchise agreement is essentially a form of cooperation (syirkah) that is legally valid according to Islamic law, as long as the goods being traded do not contradict sharia principles. Profit sharing in franchise businesses can be implemented through a fair profit-sharing system, in line with the principles of justice, transparency, and prudence in Islamic law. This profit-sharing arrangement should be clearly defined in the agreement between the franchisor and franchisee, taking into account sharia principles to avoid uncertainty or losses for either party. This study is expected to provide a deeper understanding of the implementation of Islamic economic principles in franchise businesses and their contribution to the development of a more just and sustainable business model.