Question
What is the status of paying a franchise fee? Amongst the products and services provided in exchange of the fee are: 1.1) Services to help you acquire and develop your location, including site specifications, sources of demographic information, site approval visits and architectural assistance (may only be a set of standard plans for you to customize) 1.2) Sources of equipment, fixtures, furnishings, signs, and products required for your business 1.3) A copy of the franchisor's confidential operating manual 1.4) Initial training for you, your manager and sometimes your staff 1.5) Information and assistance in conducting a grand opening marketing program 1.6) Computer software 1.7) On-hand assistance and training at your location prior to your opening 2) What is the status of paying royalty fees? Amongst the products and services provided in exchange of the fee are: 2.1) A requirement to frequently update the operations manual 2.2) Continuing management and staff training opportunities and/or requirements. 2.3) Great franchisors continually offer training to their franchisees and staff 2.4) Advertising and marketing creation, placement and support locally and system wide 2.5) Research and development on new merchandise and services you'll be allowed or required to offer. 2.6) An obligation for the franchisor to establish a franchisee advisory council or sub-councils, so you can have input into the management of the franchise system. 2.7) Individual or group counselling to help you improve the operation of your business. 2.8) Most franchisors provide field visits as well as other types of headquarters and field support.
Answer
The entire franchise system is baatil and haraam. The fees are in the category of riba. The system is encumbered by a host of corrupt (faasid) conditions. It is not permissible to participate in these franchise schemes.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 25 No 02
- PDF page
- 9
Appears under FRANCHISING (approximate).