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Aniket Misra   14 February 2023

Loi refund from franchiser

Hi, 
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.



Learning

 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.


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