How to pay the lump sum fee

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Payment of the lump sum contribution can occur in different ways :

one time and in full;
in installments - for a maximum of several months;
in rare cases - payment in parts specifically for a service: for using a brand, for training employees, for supplying equipment, etc.
Specific payment terms are specified in detail in the contract. But most often, the initial amount for the right to use the brand must be paid in full and at once.

If the franchisor offers installment plans, it delays bangladesh phone number lead receiving money and increases accounts receivable, which can lead to a cash flow gap.

A cash gap can occur when the business is profitable, but there is no money because the payment from customers has not yet arrived. This is why they usually give a small deferment, a month at most. The franchisor must calculate all the risks of extended payment terms using a financial model.

On Topic: How Small Businesses Can Avoid Cash Flows



Is it possible to return the lump sum payment?
Let us warn you right away that getting your lump sum payment back is not the easiest task.

Usually the situation unfolds like this: after starting work, the franchisee understands that the franchise does not bring the expected benefits. But in order to return the payment, he needs to prove that the seller violated the terms of the contract or that he passed off information as know-how that is not worth it.

The first thing to do is to send a claim to the franchisor and try to reach an agreement - this will save both time and nerves. In addition, business partners are always more pleased to see a company without a court history. If the franchisor refuses, then all that remains is to file a lawsuit, and before that, involve an experienced lawyer and collect evidence.

Those who can prove that the rights under the agreement were never transferred have the greatest chance of getting the lump sum refunded through the court. This means that the franchise was not used. In other cases, you can try to request a partial refund. For example, if the franchisor did not transfer the agreed know-how in full.