A petition for cancellation of franchise refers to the application or petition filed by any CPC (Certificate of Public Convenience) holder who intends to cancel his/her franchise for the reason that he/she is no longer interested to operate public utility service. This is a service offered by the Land Transportation Franchising and Regulatory Board (LTFRB), thanks to the authority to cancel granted by Section 16(m) of the Commonwealth Act 146 or the Public Service Act.
Filing the petition for cancellation of franchise is also a highly technical procedure handled by the Technical Division of the agency. It is usually filed when a CPC holder no longer wants to run a public transport service. This request goes to the specific department within the agency, thanks to the complex and highly technical nature of this petition.
What Does it Mean to Cancel a Franchise at LTFRB
Canceling a franchise at LTFRB means making a request to be allowed to cancel their CPC. The CPC, commonly known as a franchise, is an authorization issued by the LTFRB for the operation of public land transportation services. Having said that, this petition is usually filed when operators want to legally stop operating a public land transport service on the assigned route or wish to cease the company operations altogether.
Cancellation of Franchise vs. Abandonment of Routes
Canceling a franchise may be a deliberate action addressed at the LTFRB office to legally stop operating on a specific route or to stop offering public transport service entirely. Abandonment of services, on the other hand, is violation of the law, as public service may not be abandoned to the prejudice of the interest of the public. It is punishable by cancellation or revocation of CPC for public necessity cannot be made to wait nor sacrifice for private convenience.
If you are not completely sure about the difference, the act of vacating a franchised route or operating with less than the total registered franchised units in the franchised route for more than three (3) months is considered an abandonment of route and punishable by law. In case a vacant route is found, the agency then opens a new franchise application.
Who Can Avail of the Service
Filing for a Petition to Cancel Franchise at the LTFRB is something that all CPC holders can do. It is specifically useful to those who intend to cancel an LTFRB franchise because they are no longer interested or can no longer manage to operate public utility service in the franchised route granted to them.
Requirements
For a complete information on the documentary requirements needed to file a petition to cancel a franchise at the LTFRB, please check this list below:
- Four (4) original copies of the Sworn Petition/Application Form downloadable from the LTFRB website via the following links:
- Central: https://ltfrb.gov.ph/wp-content/uploads/2021/03/co_cancellation_of_franchise_and_unit.docx
- Regional: https://ltfrb.gov.ph/wp-content/uploads/2021/03/rfro_cancellation_of_franchise_and_unit.docx
- One (1) Original copy for presentation and one (1) Photocopy of any valid government-issued ID Card
- One (1) Original copy for presentation and one (1) Photocopy of current OR/CR issued by the Land Transportation Office (LTO) of authorized unit
- One (1) Original copy for presentation and one (1) Photocopy of Latest Decision
- Surrender of Plates / Return Receipt of Plates (RRPL)
- In case of lost plate
- One (1) Original copy for presentation and one (1) Photocopy of Duly notarized Affidavit of Loss
- One (1) Original copy for presentation and one (1) Photocopy of Certificate of No Apprehension
- One (1) Original copy for presentation and one (1) Photocopy of Police Report
- In case of improvised plates
- Certification and authorization to use improvised plates
- In case of non-availability of For-Hire Plate
- Certification and authorization to use the private plates as For Hire plates pending the manufacture of the yellow plates
For Authorized Representatives (Individual Operators)
Personal appearance of the petitioner is required. However, if not possible for petitioner to be physically present, authorized representative is allowed upon presentation of:
- One (1) Original copy for presentation and one (1) Photocopy of Duly notarized Special Power of Attorney (SPA)
- One (1) Original copy for presentation and one (1) Photocopy of Valid Government-Issued ID of the applicant and authorized representative
For Cooperatives
- One (1) Original copy for presentation and one (1) Photocopy of Board Resolution authorizing the Cancellation of Franchise and designating the authorized representative/s to file Petition
- One (1) Original copy for presentation and one (1) Photocopy of Valid Government-Issued ID of the authorized representative
For Corporation and Partnership
- One (1) Original copy for presentation and one (1) Photocopy of Board Resolution/ Secretary’s Certificate authorizing the Cancellation of Franchise and designating the authorized representative/s to file Petition
- One (1) Original copy for presentation and one (1) Photocopy of valid government-issued ID of the authorized representative
Steps to File a Petition for Cancellation of Franchise
To file for a petition for cancellation of franchise at the LTFRB, one simply needs to follow these steps:
Step 1: Review Guidelines
Carefully review the guidelines for cancellation of franchise outlined in the Public Service Act and in MC 2004-034, along with the criteria for justifiable circumstances and the necessary documentation.
Step 2: Visit LTFRB Office.
Visit the nearest LTFRB Office.
Step 3: Obtain Forms and Checklist
Get the Petition/Application form and checklist of requirements at the Public Assistance Complaint Desk (PACD) of the LTFRB. The form is also available for download online at the official LTFRB website.
Step 4: Submit Application
Submit the Verified Application/Petition along with the required supporting documents to Window 8 and 9 (Technical Division) for authentication and completeness check.
Step 5: Fee Assessment
Once the application is deemed complete, the assessment of fees will be prepared, and you will be issued a Payment Order Slip (POS) at Window 11.
Step 6: Make Payments
Proceed to the Cashier (Door B) to make the necessary payments and wait for the Official Receipt. Fees include Filing Fee, Clearance of Accounts Fee, Legal Research Fee, Franchise Verification Fee, and Penalty Fee for non-registration of the unit.
Step 7: Submit Documents
Submit the Petition/Application along with the Official Receipt of payment to the staff in Windows 8 and 9.
Step 8: Get your Claim Stub
Proceed to Window 11 to get your claim stub indicating when to claim a copy of the application/petition. The Technical Division will evaluate the submitted application and requirements, draft, and recommend an Order granting/denying the Petition/Application before sending it to the board for approval and encoding at the Information Systems Management Division (ISMD).
Step 9: Visit LTFRB Office
On the designated date, visit the LTFRB office where you filed the petition.
Step 10: Claim Approved/Rejected Order
Wait for your turn at the ISMD Releasing Window on the 2nd Floor. Once your name is called, claim the Approved or Reject Order at the Information Systems Management Division Releasing Unit.
For questions or other concerns regarding the petition for cancellation of franchise, you may reach out to the LTFRB directly via the following:
Fees
When submitting a petition to cancel franchise at the LTFRB, it’s essential to be prepared to cover the following fees:
- Filing Fee: PHP 250.00 (for the first two units), PHP 70.00 (for succeeding units)
- Clearance of Accounts Fee: PHP 50.00
- Legal Research Fee: PHP 10.00
- Franchise Verification Fee: PHP 40.00
- Penalty Fee: PHP 250.00/month/unit – for non-registration of unit (extension fees)
Processing Time
The usual time it takes to process a Petition for Cancellation of Franchise is around 18 days, as long as all the needed documents are provided on time. But if some documents are missing, it might take longer. Also, incomplete submissions could end up costing more because of the extra time and expenses. By following these steps and ensuring all required documents are provided, all CPC holders who are interested in filing a petition for cancellation of franchise at the LTFRB may do so without any problems.
Video: LTFRB Franchise Cancellation and Anti-Colorum Campaign
Watch the LTFRB in action during one of their Franchise Cancellation and Anti-Colorum Campaigns via this video from ANC 24/7: