It depends on what you agree. Some franchisors ask for a deposit or a pre-contract payment before you sign the full agreement, often to reserve a territory while you arrange finance. Whether you get it back depends on the terms of that deposit agreement.
What the bfa Code expects
For franchisors who follow the bfa Code of Ethics, before you sign any pre-contract:
- you should get written information about its purpose and about any payment you're asked to make to cover the franchisor's actual costs
- if you then sign the franchise agreement, that payment should be refunded or set against the franchise fee
- the pre-contract should state how long it lasts and how it can be ended
What to check before you pay
- Is it refundable, in full or in part, and in what situations?
- What can be kept to cover the franchisor's costs, and how are they worked out?
- What if your finance isn't approved? Ask for this to be covered in writing.
- How long it lasts, and when the franchisor can release your territory.
Don't assume a cooling-off period
Don't rely on a right to change your mind. Check what the deposit agreement says, and get it reviewed before you pay.
Talk to us early
If you'll need finance, talk to us before you pay a deposit. See How does applying for franchise finance with bizbritain work?.
This is general information, not legal advice. Speak to a franchise-specialist solicitor.
Last reviewed: 8 October 2026