I've been trying to open a franchise for months. I've paid the franchisor some of the required fees including over $11000 in legal, advertising and licence costs. I still haven't received a final franchise agreement and the franchisor keeps delaying despite me having provided funds to get the ball rolling. I've now decided I don't want to finalise our agreement now. Can I get the money back or do I just count it as a loss?
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Answer by LegalEagle™ Staff, Melbourne 3000 VIC
- Fortunately the Franchising Code of Conduct protects your interests here. The Code requires that a franchisor has to give you a disclosure document and a final draft of the franchise agreement 14 days before they take any non-refundable money from you.
- If the franchisor failed to provide you with this mandatory information you are entitled to ask them for your money back and you are not under any obligation to sign the franchise agreement.