Growth in today's business world is so rapidly evolving, also supported efforts to expand its business increasingly varied. One form of development or an attempt to expand the business using the franchise business system. For the Franchisee with a franchise business system that would have benefited at least in terms of business efficiency, meaning that the franchisee uses the brand name of the business of business, logo, ways of producing, marketing and service plus give technical assistance. But in practice in Indonesia notch franchisees are so vulnerable to treatment franchisor; franchisee does not even have a position in the determination of material bargaining agreement. Research methods used in this paper using a normative juridical approach, which is solely to achieve the accuracy of studies of the material. Form of franchise agreements, franchise agreements and the execution carried out in franchise agreements in Indonesia have not been able to provide legal protection for the franchisee. Obstacles that arise in providing legal protection for the franchisee is an inadequate legal regulations, the form of franchise agreement is a standard contract or standard, the lack of franchisee associations, and government's role in the determination of royalties, taxes and the role of the Department of Industry and Trade that is not maximized . Franchise agreement in Indonesia has not carried out in accordance with the legal principle of freedom of contract that resulted in the absence bargaining power between the franchisee with franchisor. Then there must be interference from the government in providing legal protection.