Q&A

Question: Can a Franchisor retain part of a deposit?

A Franchisor may retain any monies as part of a deposit so long as they have received a statement from the potential franchisee confirming they have received and had a reasonable opportunity (i.e. 14 days) to read and understand a copy of the Franchising Code of Conduct, the Franchise Agreement (in the form it is to be executed) and the Disclosure Document. Reasonable expenses such as the cost of executing the documents may also be retained.