Franchise deposit is mainly the credit guarantee for franchisees to return the trademarks and articles provided by the head office, so as to ensure franchisees to maintain and use the brand normally in the local area, so as to better establish a good brand image, and return it in full without interest if franchisees do not violate the franchise contract or operate.
Franchise fee is a unique business form, which means that the brand holder engages in business activities under a unified business model according to the contract, and the franchisee pays a certain fee to the brand holder. The deposit is a kind of money guarantee provided by the performance of the contract. And return it when the contract expires or is dissolved according to law.
The refund method is different. The franchise fee is non-refundable, which is the cost of joining a brand. The deposit shall be returned to the franchisee within the specified time or the time agreed in the contract.