If I have given a franchise a good faith down payment on their franchise fee in order to look at the books from the current operator of a si...

Question

If I have given a franchise a good faith down payment on their franchise fee in order to look at the books from the current operator of a site does that constitute a contract

Answer

Giving a deposit does not generally constitute a contract. However, an individual holding a franchise will not usually permit anyone to examine their books, unless an Agreement of Sale has been signed by the parties. The Agreement of Sale will contain language stating that it is expressly contingent on the books accurately reflecting the Franchisor's representations to the prospective buyer.