To enhance legal certainty and simplify licensing for franchise entrepreneurs, the Ministry of Trade has introduced Regulation No. 25 of 2025 concerning the issuance of the Franchise Registration Certificate (STPW). This new regulation, effective 30 July 2025, serves as the official guideline for local governments, aiming to streamline the business process for both franchisors and franchisees.
Key Takeaways
- New Regulation: Ministry of Trade Regulation No. 25 of 2025 simplifies franchise licensing and will take effect on 30 July 2025.
- Online Submission: All applications for the Franchise Registration Certificate (STPW) must be submitted online through the Online Single Submission (OSS) system.
- Local Government Authority: Local governments are now authorized to verify and issue STPWs for franchisees and sub-franchisees.
- Mandatory Clauses: Franchise agreements are required to contain 15 specific clauses that will be verified during the application process.
- 5-Day Timeline: The STPW must be issued within 5 working days, and the OSS receipt can be used as a temporary license if this deadline is missed.
Who has the authority to issue the Franchise Registration Certificate (STPW)?
Local governments have the authority to issue the STPW. This authority is specifically granted to the Head of the Investment and One-Stop Integrated Services Office (DPMPTSP) on behalf of regional leaders and the head of the business licensing unit in the Capital City of Nusantara.
This authority covers the issuance of STPW to:
- Franchisees of domestic franchisors.
- Sub-franchisees of foreign franchisors.
- Sub-franchisees of domestic franchisors.
How can you apply for an STPW?
You can apply for an STPW online through the Online Single Submission (OSS) system. The application process requires uploading two main documents to ensure a complete submission.
The required documents are:
- Franchisee Registration Form: This form must be downloaded from the OSS system and completed manually.
- Franchise Agreement: This is the formal written agreement between the franchisor and franchisee outlining the terms of the business relationship.
What must be included in the franchise agreement?
The franchise agreement must contain 15 specific mandatory clauses that will be verified by the local government. Including all these points is essential for the application to be approved. Special attention is given to franchises in the education sector, which require additional verification of the relevant business license.
The 15 mandatory clauses are:
- Name and address of all parties.
- Details of intellectual property rights with a valid protection period.
- The specific type of business activity.
- The established business system.
- Rights and obligations of each party.
- Details on assistance, facilities, training, and marketing support from the franchisor.
- The defined business territory.
- A guarantee of compensation if the franchisor terminates the business.
- The term of the agreement.
- Procedures for paying royalties or other fees.
- Terms for ownership and transfer of the franchise.
- The agreed-upon method for dispute resolution.
- Procedures for extending and terminating the agreement.
- A guarantee that the franchisor will continue to fulfill its obligations.
- The number of outlets the franchisee will manage.
How does the government verify STPW applications?
The government verifies STPW applications through a two-stage mechanism. This process ensures all documents and requirements are complete and compliant before the certificate is issued.
The verification stages are:
- Verification of Requirements Fulfilment: The government first checks for the completeness of documents and compliance with the 15 mandatory clauses. If data is missing, the application is returned for revision. If the franchisor does not have an STPW, the application will be rejected.
- Verification for Application Approval: This second stage involves a final re-examination of all documents and data to determine the application’s final status before the STPW is issued.
How long does it take to get an STPW?
The entire process to get an STPW must be completed within 5 working days. If this timeline is exceeded, the regulation provides a practical solution to prevent business delays. In such cases, the OSS submission receipt can serve as a temporary license, allowing you to operate your franchise business legally until the official STPW is issued.
How Can Permitindo Help You Navigate These New Rules?
Permitindo can help by managing the entire STPW application process for you, ensuring it is smooth, compliant, and fast. Navigating the new requirements, including the 15 mandatory clauses, the two-stage verification system, and the OSS platform, can be complex.
Our team of experts handles all the details, from document preparation to submission and follow-up, guaranteeing that your application meets all government standards. To have us handle the bureaucracy so you can focus on launching your franchise business, simply fill in the form below or reach us directly at contact@permitindo.com.
