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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 70212
Experience:  Over 5 years in practice
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I was just looking - i paid a deposit to a franchisor

Resolved Question:

Hi, i was just looking for advice - i paid a deposit to a franchisor as i was interested in becoming a franchisee. I've not signed any contract and decided it wasn't for me. I contacted the franchisee but haven't heard anything back regarding my deposit.
Submitted: 1 year ago.
Category: Law
Expert:  Jo C. replied 1 year ago.
Hi.
Thank you for your question. My name is ***** ***** I will try to help with this.
Are you asking if you ca recover?
Customer: replied 1 year ago.
Yes, it was £2500
Customer: replied 1 year ago.
We were promised it was refundable and we haven't signed any contract.
Expert:  Jo C. replied 1 year ago.
Did the seller suffer any losses?
Customer: replied 1 year ago.
Not that I'm aware of, the designated area was already on their books after the previous incumbent decided not to renew. We were asked to pay a deposit which was, we were told refundable and was the reason we decided to progress further - we then received a standard contract for review but decided not to proceed. The contract was standard with only 1/2-1 page of detail specific to ourselves. I can't see that it took more than 2minutes to print, append the page specific to the franchisee and post.
Expert:  Jo C. replied 1 year ago.
They may be entitled to some form of admin costs but it isn't going to be a great deal.
Other than that, whatever the contract says they have suffered no loss and so have no basis for withholding this.
If they do refuse though, whatever the legal position, the fact remains that they are refusing. You could sue to recover. It is a small claims court sum and so it would be cheap to issue. Probably it won't come to that but that is an option if you have to.
Can I clarify anything for you?
Jo
Jo C. and other Law Specialists are ready to help you
Customer: replied 1 year ago.
Your help has been very re-assuring and I'd not hesitate to recommend you - many thanks.
Expert:  Jo C. replied 1 year ago.
No problem and all the best.
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