Ref: tij005/08
February 2008
Q: I intend franchising my business. Can I ask for a franchise fee and is it permissible to collect royalty on turnover.
A:
According to our research leasing out of registered intellectual property is permissible. Hence, you may charge a fee for leasing out your franchise name. Charging royalty on turnover is acceptable provided it is capped by a fixed figure.
Ameer, Darul Ihsan Islamic Services Centre