Q: Please advise I have been getting numerous requests from across the country to open branches all over, since my concept of business is so unique. Further I have been looking to gain a national presence since I see a demand for my products countrywide. However, the capital involved and the headache involved with the admin has made me rethink this out. I wish to start franchising / licensing out our concept. Is it possible to ask for an upfront fee?
Further, I want to let my franchisees deal direct with my suppliers, and then ask them for a monthly purchase commission/royalty based on purchases. This income will be to cover the set-up of an admin department to negotiate national prices. Obviously there will be profit in here as well. Why I ask for the upfront money, is that I have done this for 3 people so far, without asking for any fees. One does not support me any more, because they have learnt the game, and now deal with suppliers directly. The second, after four months, returns all my stock, and I must credit him, after working on a 10% mark-up on goods supplied.
A: To attach any fee or price for a franchise is not permissible. You may opt for entering into a partnership with those who wish to participate in this business.
عن ابن عمر رضي الله عنهما قال نهى النبي صلى الله عليه وسلم عن بيع الولاء وعن هبته (صحيح البخاري رقم 6756)
الحقوق المجردة لا يجوز الاعتياض عنها كحق الشفعة (الأشباه والنظائر 2/153)
وفي الأشباه لا يجوز الاعتياض عن الحقوق المجردة كحق الشفعة وعلى هذا لا يجوز الاعتياض عن الوظائف بالأوقاف وفيها في آخر بحث تعارض العرف مع اللغة المذهب عدم اعتبار العرف الخاص لكن أفتى كثير باعتباره وعليه فيفتى بجواز النزول عن الوظائف بمال (الدر المختار 4/518)
Answered by:
Mufti Ebrahim Salejee (Isipingo Beach)