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When is the franchise fee paid to the franchiser


07-Apr-2023 (In Startup Law)

I would like to get a clarification on when is the franchise fee expected to be paid to the franchisor. If it during the signing of the LOI or during the signing of the Franchise Agreement?

Answers (2)

Answer #1
731 votes
There is no hard and fast rule when it can be paid. But on a usual business course it is paid during the franchisee agreement and mentioned in the agreement as well. If you need any further help you can get in touch with us.
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Advocate Abheek Saha

Adv. Abheek Saha

LawRato Bangalore / Bengaluru | 5+ Answers
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Answer #2
646 votes
It can be mutually agreed. It is advisable to pay token amount at the time of signing LOI. Pay full franchisee fee can be paid at the time of entering in to Franchisee Agreement. Please get the agreement vetted before signing.
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Advocate Sandeep Hegde

Adv. Sandeep Hegde

LawRatoBangalore / Bengaluru | 5+ Answers
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