The objective of this research is to look for the justification of a new theory that uses franchise as
an alternative to alleviate poverty in Indonesia, particularly absolute poverty in urban cities. Local
wisdom inspires Indonesia s juridical design g for franchise laws that supports the franchise industry.
This research finds that the theory that franchise can be applied as an instrument to alleviate poverty
can be accepted. However, the application of the franchise industry as an instrument to alleviate poverty
is ineflective because of a several factors, such as the vagueness of statutory regulations, unfavourable
social culture, and the weak government supervision.
Keywords: franchise, poverty alleviation, local wisdo
