The proliferation of franchises in Padangsidimpuan City has made traditional traders restless, there has also been conflict from the community due to the proliferation of these franchises in Padangsidimpuan City. So what is the role of local governments to overcome conflicts that occur, and what solutions are given by local governments to overcome these problems. The method used is qualitative through a case study approach. Contextual investigation is an exploratory technique including a very close assessment of a particular case. In addition, data collection techniques are carried out by looking for primary data and theoretical references that are relevant to the problems found. The theoretical references and documents related to the topic obtained through library research are used as the basic foundation and main tool for research practice in the middle of the field in this research. To limit the proliferation of franchise businesses in Padangsidimpuan City, initially the Padangsidimpuan city government only issued an appeal letter, but it did not have much effect on franchises, so the Padangsidimpuan City local government issued Padangsidimpuan Mayor Regulation No. 6 of 2021 concerning Structuring and Fostering People's Markets, Shopping Centers and Shops Supermarkets in Padangsidimpuan City, indeed there is no article specifically discussing sharia but from the regulations issued there are no articles that contradict sharia principles.