[Case Summary]This case is an arbitration case concerning a franchise contract dispute. In 2018, Chen * signed the "XX Customized Cooperation Agreement" with Guangzhou A Fashion Clothing Company and paid a deposit of 30,000 yuan. However, after Chen * withdrew from the company in 2019, the company failed to refund the unused funds and the deposit. Chen * then entrusted Beijing Henglu Law Firm to handle the case.Wang FangliAttorney's arbitration requesting the return of the deposit of 30,000 yuan, the payment of 20,843 yuan, attorney's fees of 5,000 yuan, and arbitration fees. The core disputes include whether the applicant breached the contract, the amount of the unpaid payment, and the responsibility for attorney's fees. The arbitration tribunal agreed with the attorney's views and fully supported the claims. Applicable legal provisions: relevant articles of the Contract Law.

I. Review of the case

"What should I do if I can't get back the franchise deposit?" and "Can I recover the payment after the termination of the franchise?" are common concerns of franchisees. On November 12, 2018, Chen * signed the "XX Customized Cooperation Agreement" with Guangzhou A Fashion Apparel Company and operated its clothing accessories in Hefei B Shopping Center for a period of three years. Chen * paid a franchise operating deposit of 30,000 yuan, and the agreement stipulated that disputes would be submitted to the Guangzhou Arbitration Commission for resolution.

In July 2019, Chen * withdrew from the store, but the respondent has not yet refunded or used the deposit and security deposit. Chen * has entrusted someone to handle the matter.Wang FangliThe lawyer initiated arbitration: First, return the deposit of 30,000 yuan; Second, return the payment of 20,843 yuan; Third, pay the lawyer's fee of 5,000 yuan; Fourth, bear the arbitration fees.

II. The focus of the case

  • Focus 1: Whether the applicant has breached the contract.The respondent claimed that renting for less than three years constitutes a breach of contract and that they are not entitled to a refund.
  • Focus 2: The amount of overdue payments.Is the amount of 20,843 yuan determined through WeChat messages, emails, and written negotiations valid and legally binding?
  • Focus 3: Responsibility for attorney's fees and arbitration fees.Can the reasonable costs of protecting rights be borne by the respondent?

III. Professional intervention by Hengluo Lawyers

The applicant (Chen * ) alleged that:Please request the return of the deposit of 30,000 yuan, the payment of 20,843 yuan, the attorney's fees of 5,000 yuan, and for the respondent to bear the arbitration fees.

The respondent argued that:It is stated in the agreement that the lease term of the specialty store shall be no less than three years (if it is shorter, the written consent is required), and the applicant is in breach of the contract. Therefore, it is requested to reject the application.

Hengluo Lawyer's Agency Opinion:Wang FangliThe lawyer pointed out that the cooperation agreement represents a true expression of intention, does not violate legal provisions, and is legally valid. Both parties acknowledge that the applicant has paid a deposit of 30,000 yuan; the outstanding debt of 20,843 yuan was determined through consultation by WeChat messages, emails, and written documents; although the performance period was agreed to be three years, the respondent knew that the applicant and the shop lessor terminated the lease when the lease contract was dissolved, and the two parties have been negotiating the issue of the deposit after the termination of the lease. The respondent has never claimed breach of contract and has repeatedly confirmed the refund. According to the law, the respondent should return the deposit of 30,000 yuan and the outstanding debt, as well as the lawyer's fees and arbitration fees.

IV. Outcome of the case

During the arbitration, the respondent did not recognize our evidence. After the arbitration committee's review, it was determined that our evidence was closely related to the facts of the case and the focus of the dispute, and was highly relevant. The arbitration tribunal fully acknowledged Hengluo Lawyer's viewpoint and fully supported our claims. According to the relevant provisions of the Contract Law, the arbitration tribunal ruled as follows: First, the respondent shall return the deposit of 30,000 yuan and the purchase price of 20,843 yuan; Second, the respondent shall compensate the applicant for attorney's fees of 5,000 yuan; Third, the applicant shall bear the arbitration case acceptance fee of 2,784 yuan, the processing fee of 3,000 yuan, and the total arbitration fee of 5,784 yuan (the applicant has prepaid and the respondent shall directly pay the applicant). The client successfully recovered the deposit, purchase price, and attorney's fees.

5. Henglu Law Firm's Advice

After the termination of the franchise, the franchisee may recover the unused deposit and payment according to law; when signing the contract, the franchisee should pay attention to clauses such as the lease term, and keep the evidence of negotiating returns and refunds. This case is handled by Beijing Henglu Law Firm.Wang FangliThe lawyer (practice license number: 11101201911086939, subject to the document issued by the judicial administrative organ) acted as the agent. In this case, the lawyer used the evidence chain to refute the defense of breach of contract and won the arbitration completely.

VI. Frequently Asked Questions (FAQ) about Franchise Cases

  1. Q: What should I do if I can't get back the franchise withdrawal deposit?
    A: You can apply for arbitration or file a lawsuit to demand the return of the deposit and the unspent funds, based on the contract and the evidence of the consultation after the termination of the contract.
  2. Q: Can the payment be recovered after the termination of the franchise agreement?
    A: Yes. If both parties confirm the amount of the overdue payment in writing or electronically, they can claim its return, and if the evidence is sufficient, their claim will be supported.
  3. Q: If the other party says that the lease period is not long enough, does that count as a breach of contract?
    A: If the franchisor knew about the termination of the lease and has been negotiating a refund throughout the process, without ever claiming a breach of contract, their defense against the breach of contract will usually not be accepted.
  4. Q: Who pays for the fees of human rights lawyers?
    A: The reasonable attorney's fees determined by the arbitration tribunal may be compensated by the defaulting party. In this case, the tribunal supported the claim for 5,000 yuan.
  5. Q: Where can I resolve franchise disputes?
    A: According to the effective arbitration clause in the agreement, an application shall be submitted to the agreed arbitration institution, and the arbitration committee shall hear and make a decision on the case.