LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Aniket Misra   14 February 2023

Loi refund from franchiser

I signed a LoI with a franchiser couple of years back where we planned to start a franchise in the city, but due to a lack of a good property we didn't go forward with it, while giving the LoI the manager from the company asked for a token amount of 1 Lac over call, over mail he just asked LoI to be signed and gave the company's bank A/C , we mentioned that we have signed and deposited 1 Lac as token amount. Please note there was no mention of this amount even in the LoI itself. Now when we don't have a plan to move forward they are saying that LoI is non refundable but this was not mentioned to me anywhere, neither on call or on mail or the document itself.


 3 Replies

Real Soul.... (LEGAL)     14 February 2023

Actually you have to see if there no such term in LOI or anywhere else that you have agreed or accepted , if the reply is negative then just issue a legal notice first asking for amount and in failure to pay for costs of recovery and bank interest; if that is not enough then file for recovery of money suit in court.

1 Like

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     14 February 2023

You can send a legal notice through a lawyer for money recovery from the party. 

1 Like

Aniket Misra   27 February 2023

The LOI mentions the franchise fee as non refundable but the money they asked was a token amount and was never mentioned to be part of the franchise fee. Now they say that it was part of the franchise fee and is non-refundable.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register