Q&A

Question: Does a Franchisor have to return a deposit?

A Franchisor does not need to return a deposit if the amount of the deposit, and the fact it will be retained, has been disclosed to the Franchisee. The Franchisee must also have been provided with a copy of the Franchising Code of Conduct, the Franchise Agreement (in the form it is to be executed) and the Disclosure Document. The Franchisee must also give a statement to the Franchisor confirming they have received, read and had a reasonable opportunity (i.e. 14 days) to understand all of the documents.