Tag: franchise deposits

The CPA requires that a franchise agreement must be in writing and signed by or on behalf of the franchisee and must include any “prescribed information”. In regard to deposits the regulations stipulate that a franchise agreement must contain: “confirmation that any deposits paid by the prospective franchisee will be deposited into a separate bank account and a description of how these deposits will be dealt with”. full particulars of any initial fee payable to the franchisor on the signing of the franchise agreement, and the purpose for which it is to be applied. FASA Franchise Association South AfricaTo protect, …