Tatwabit Pattanaik 25 April 2025

Franchisor is not returning the token amount

I have paid 10k token amount to a franchise for the next steps. After visiting their head office and few stores, I concluded that they are not as good as they are portraying. Even I verified their agreement with a corporate lawyer. He said not to go ahead with the franchise, because there are many flaws in the agreement.

Now I told them that I can go for ahead with their franchise and they should refund my token amount. Now they are saying your token amount is the part of franchise feedback and as per company policy, we can't refund it. I told them your franchise fee is not refundable, but this is token amount.

Please let me know if can file a consumer case for this action on the franchise.

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6 Replies

T. Kalaiselvan, Advocate (Advocate) 25 April 2025

You issue a legal notice to the company demanding the return of your money failing which you can file a suit for recovery of your money.

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R.K Nanda (Advocate) 25 April 2025

All depends on the terms and conditions of policy of said company but you can send legal demand notice to said company to refund your token amount.

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Tatwabit Pattanaik 25 April 2025

Thank you sir,

Could you please let me know if I can send the legal notice and further proceedings from my home or is there a provision to visit the court in their area. Actually I stay in odisa and their headquarter is in hyderabad.

Tatwabit Pattanaik 26 April 2025

Originally posted by : R.K Nanda
	All depends on the terms and conditions of policy of said company but you can send legal demand notice to said company to refund your token amount.

Thanks for the response sir.

The terms and conditions are like their franchise fee is not refundable. But there is no such condition for token fee. When I asked them the refund for token fee, they told this token fee coming under franchise fee, hence non refundable.