Settings and Procedures for Franchise Licensing

Oct 13, 2025 by talynt.org 35 views

Introduction

The supervision of franchise permits in Medan City is a crucial step in reducing violations in the franchise sector and creating an orderly administrative society. This strategic move is expected to ensure that the franchise business licensing process runs smoothly and in accordance with the provisions. In this article, we will discuss the settings and procedures for franchise licensing, the supervision of franchise permits, sanctions for violators, and the conclusion of this important issue.

Settings and Procedures for Franchise Licensing

The procedure for obtaining a franchise business license in Medan City begins with a submission of an application to the One-Stop Investment and Integrated Services Office. This process is regulated in Medan Mayor Regulation Number 76 of 2017, especially in Article 7 paragraph (3) letter (b). In submitting an application, the prospective franchise recipients must meet the various conditions set, including the provision of documents and the completeness of the required documents. This is a crucial first step in the licensing process.

The licensing process is not only a formality but also an effort to ensure that the permitted effort has met certain criteria that can guarantee the sustainability of the business. Article 22 paragraph (3) to paragraph (8) in the regulation further describes the documents and conditions that need to be prepared. This includes the provision of a business plan, a list of shareholders, and a statement of the company's purpose.

Key Requirements for Franchise Licensing

Submission of an application to the One-Stop Investment and Integrated Services Office
Provision of documents and completeness of required documents
Meeting of various conditions set by the regulation
Provision of a business plan, a list of shareholders, and a statement of the company's purpose

Franchise Permit Supervision

Supervision of a franchise permit in Medan refers to the Minister of Trade Regulation No. 53 of 2012. This supervision involves two approaches, namely direct supervision and indirect supervision. Direct supervision can be carried out through field inspections, while indirect supervision can include evaluating reports from business actors. This method aims to ensure that every operating franchise business has complied with existing regulations.

Through effective supervision, it is hoped that a healthy and ethical franchise business ecosystem will be created. Good supervision will also increase public confidence in the franchise sector, as well as encourage business actors to comply with applicable regulations.

Importance of Franchise Permit Supervision

Ensures compliance with existing regulations
Creates a healthy and ethical franchise business ecosystem
Increases public confidence in the franchise sector
Encourages business actors to comply with applicable regulations

Sanctions for Violators

In the event of a violation, the government has prepared strict sanctions. This is stated in Article 32 to Article 34 of the Minister of Trade Regulation Number 53 of 2012 concerning Franchise Companies. Sanctions for violators are divided into two categories, namely administrative sanctions and fine sanctions. Administrative sanctions can be in the form of warnings or freezing of permits, while sanctions can be imposed on franchising and franchise recipients who violate the provisions in Article 9 and Article 10.

The application of this sanction is important to uphold compliance and maintain the integrity of the franchise licensing system. With a clear sanction, it is hoped that business actors will be more obedient to existing rules, thus creating a just and transparent business environment.

Types of Sanctions for Violators

Administrative sanctions (warnings or freezing of permits)
Fine sanctions (imposed on franchising and franchise recipients who violate the provisions)

Conclusion

Franchise licensing supervision in Medan is a key element in ensuring that franchise business runs according to applicable regulations. With clear procedures, consistent supervision, and strict sanctions for violators, it is hoped that an effective licensing system will create. This will not only bring benefits to business actors, but also for the wider community who expect certainty and order in franchise business practices. Through this effort, Medan City can optimize the potential of the franchise sector as one of the developing economic pillars.

Benefits of Effective Franchise Licensing Supervision

Ensures compliance with existing regulations
Creates a healthy and ethical franchise business ecosystem
Increases public confidence in the franchise sector
Encourages business actors to comply with applicable regulations
Optimizes the potential of the franchise sector as one of the developing economic pillars

Q: What is the purpose of supervision of franchise permits in Medan City?

A: The purpose of supervision of franchise permits in Medan City is to ensure that franchise businesses operate in accordance with applicable regulations, creating a healthy and sustainable business order.

Q: What are the settings and procedures for franchise licensing in Medan City?

A: The procedure for obtaining a franchise business license in Medan City begins with a submission of an application to the One-Stop Investment and Integrated Services Office. This process is regulated in Medan Mayor Regulation Number 76 of 2017, especially in Article 7 paragraph (3) letter (b).

Q: What are the key requirements for franchise licensing?

A: The key requirements for franchise licensing include submission of an application to the One-Stop Investment and Integrated Services Office, provision of documents and completeness of required documents, meeting of various conditions set by the regulation, and provision of a business plan, a list of shareholders, and a statement of the company's purpose.

Q: What are the two approaches to supervision of franchise permits in Medan City?

A: The two approaches to supervision of franchise permits in Medan City are direct supervision and indirect supervision. Direct supervision can be carried out through field inspections, while indirect supervision can include evaluating reports from business actors.

Q: What are the types of sanctions for violators of franchise regulations in Medan City?

A: The types of sanctions for violators of franchise regulations in Medan City are administrative sanctions (warnings or freezing of permits) and fine sanctions (imposed on franchising and franchise recipients who violate the provisions).

Q: Why is effective supervision of franchise permits important in Medan City?

A: Effective supervision of franchise permits is important in Medan City because it ensures compliance with existing regulations, creates a healthy and ethical franchise business ecosystem, increases public confidence in the franchise sector, and encourages business actors to comply with applicable regulations.

Q: What are the benefits of effective franchise licensing supervision in Medan City?

A: The benefits of effective franchise licensing supervision in Medan City include ensuring compliance with existing regulations, creating a healthy and ethical franchise business ecosystem, increasing public confidence in the franchise sector, encouraging business actors to comply with applicable regulations, and optimizing the potential of the franchise sector as one of the developing economic pillars.

Q: How can business actors ensure compliance with franchise regulations in Medan City?

A: Business actors can ensure compliance with franchise regulations in Medan City by submitting accurate and complete applications, providing required documents, meeting conditions set by the regulation, and adhering to applicable regulations.

Q: What are the consequences of non-compliance with franchise regulations in Medan City?

A: The consequences of non-compliance with franchise regulations in Medan City include administrative sanctions (warnings or freezing of permits) and fine sanctions (imposed on franchising and franchise recipients who violate the provisions).

Q: How can the public contribute to effective supervision of franchise permits in Medan City?

A: The public can contribute to effective supervision of franchise permits in Medan City by reporting any violations or irregularities to the relevant authorities, providing feedback on the franchise licensing process, and promoting awareness of the importance of compliance with franchise regulations.