The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Is a deposit required by the franchisor refundable if I decide I do not want to proceed
It is not uncommon for a franchisor to request that, when someone shows an interest in becoming a franchisee, they should pay a deposit, often to ‘secure’ a particular territory. However, usually at the point that a deposit is paid there is no signed franchise agreement in place, as the potential franchisee is still considering whether to take on the franchise. If a franchisor asks for a deposit while the potential franchisee is still investigating investing in the business, it is essential that the potential franchisee has written confirmation from the franchisor of all details relating to the deposit - before any money is handed over. This written confirmation should be signed by the franchisor and should confirm the amount of deposit received by the franchisor, together with details of the circumstances when the deposit will be repaid, for example, if the potential franchisee does not proceed to signing a franchise agreement. The confirmation should also clearly set out what happens to the deposit if the franchisee signs the franchise agreement. For example, will the deposit be taken as part payment of any initial fee or amounts payable under the franchise agreement?
You might also be interested in
Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities
Companies to Consider
£75,000 to £100,000
Fun Fest for Children
BT Local Business
£1-2m t/o, 10-20% profit
£600,000 to £800,000
BforB - UK
Circa £200,000 AFTER fees
Third party support
Bridgewater Home Care
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 3 years ago | 2 min read
Added one day ago | 2 min read
Added 4 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news