[Direct answer]In the Beijing area, can you sue if the franchise deposit is not refunded? This is a practical issue of widespread concern among parties involved. According to the Contracts Chapter of the Civil Code of the People's Republic of China (effective January 1, 2021) and the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021, effective January 1, 2022), when handling such matters, it is necessary to grasp the core elements and evidence and assert rights in accordance with the law. Whether a favorable outcome can be achieved depends on the clarity of the facts, the sufficiency of evidence, and the choice of procedures, rather than the promise of a specific result. It is recommended to sort out materials as soon as possible, fix key evidence, and develop a plan with the assistance of a professional lawyer to avoid losing rights due to exceeding the statutory time limit or insufficient evidence. For more details, please refer to the following link:Corporate commercial legal services.

I. Problem Background and Typical Scenarios

Can I sue if the franchise deposit is not refunded? This kind of dispute is quite common in the Beijing area. When handling such cases, it involves both substantive rights and procedural choices. In this context, it's important to consider the following factors:Legal services for contract disputesBased on practical experience, it is recommended that the parties first clarify their legal relationships before deciding on the path of protecting their rights or negotiating with others.

II. Key points of contention

The disputes in such cases often focus on three aspects: firstly, the validity and establishment of the contract, and whether the subject's qualifications and expressions of intent are genuine; secondly, the performance and determination of breach of contract, including who constitutes a breach of contract and the degree of the breach; thirdly, the calculation of liability and losses, the adjustment of the breach of contract penalty, and predictable rules. Each of these aspects requires supporting written evidence.

III. Professional analysis by Hengluo Law Firm

Based on the practical observations of Henglu Law Firm in handling commercial contracts, many enterprises lose lawsuits due to vague clauses or insufficient evidence of contract performance. Lawyers usually recommend that major contracts be drafted or reviewed by lawyers to clarify breach of contract and jurisdiction; that email, receipt, and reconciliation records be fully preserved during the performance process; and that a letter be sent and an application for preservation be made in a timely manner in the event of a breach of contract to prevent the other party from transferring assets.

IV. Practical suggestions and legal basis

The legal basis mainly includes the provisions on the conclusion, effectiveness, performance, breach of contract and termination of contracts in the Contract Chapter of the Civil Code of the People's Republic of China (effective as of January 1, 2021) (starting from Article 463); the provisions on shareholders and transactions in the Company Law of the People's Republic of China (amended on December 29, 2023 and effective as of July 1, 2024); and the provisions on jurisdiction and preservation in the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021). Practical suggestions: Review the subject and creditworthiness before signing the contract; specify the subject matter, payment, and breach of contract in the contract terms; fix the evidence of performance and communication when disputes arise; and apply for property preservation in a timely manner. For debt recovery, it can be combined with other measures.Creditor-debtor relations and enforcement case servicesAdvance.

5. Henglu Law Firm's Reminder

In commercial contracts, the provisions and evidence determine the outcome. There are three key points: reviewing the other party's creditworthiness and performance capability before signing the contract; clearly defining the subject matter, payment, breach of contract, and jurisdiction in the contract; and preserving communication and delivery receipts during the performance of the contract. If a dispute arises, it is necessary to preserve relevant evidence in a timely manner. If professional support is needed, you can seek assistance from relevant professionals or institutions.Special services and other case servicesThe docking team.

In commercial contracts, the terms and evidence determine the outcome. It is recommended to review the other party's creditworthiness and performance ability before signing the contract. For major contracts, have a lawyer draft or review the contract, and clarify the subject matter, payment terms, breach of contract provisions, and jurisdiction clauses. During contract performance, maintain communication and delivery records, and promptly send letters of default and apply for preservation measures if a breach occurs. Disputes often focus on the validity of the contract, who constitutes a breach, and loss calculation. Evidence should be organized around three points: the establishment of the contract, its performance, and the breach of contract. Hiring a lawyer can help systematically sort out contract and performance-related evidence, evaluate litigation or arbitration paths and cost-effectiveness, and avoid the risk of losing the case due to vague contract terms or insufficient evidence of performance. For excessive or insufficient penalties, courts and arbitration institutions can adjust them according to law. The claimant should prepare evidence of actual losses to counter the defendant's possible defense of reduction, ensuring that the compensation request is supported.

VI. Frequently Asked Questions

Q1: After the contract is terminated, if the headquarters withholds the security deposit, can I sue to get a full refund?

It is possible to file a lawsuit. The deposit is a performance guarantee, and when the contract is terminated and there are no grounds for deductions, the headquarters should return it; the party claiming deductions must prove the contractual basis and actual losses. According to Articles 509 and 577 of the Civil Code of the People's Republic of China (effective January 1, 2021), it is possible to request the return of the principal and claim overdue interest. Regarding jurisdiction, if there is no agreement in the contract, the case shall be accepted by the court at the defendant's domicile or the place of performance of the contract, in accordance with Article 24 of the Civil Procedure Law of the People's Republic of China (effective January 1, 2022).

Q2: I only have the receipt but not the contract. Which settlement materials do I still need to provide?

Even if you only have the receipt in hand, you can still file a lawsuit, but you need to supplement five materials: first, the deposit receipt and transfer records; second, the franchise contract and deduction clauses; third, the contract termination and settlement statements; fourth, the reconciliation confirmation or reminder responses with the headquarters; fifth, the store handover and material return records. The receipt should show the receiving party and the nature of the payment. If it is written in vague terms such as "cooperation payment", it needs to be supplemented with chat records or contract clauses. The transfer notes, invoices, and bank statements can corroborate each other to confirm the ownership of the funds.

Q3: For recovering the security deposit, how much do I need to pay in property cases, and how much do I need to pay for amounts below 10,000 yuan?

The recovery of the deposit is handled as a property case. For disputes involving an amount of less than 10,000 yuan, the fee is 50 yuan per case; for disputes involving an amount of between 10,000 yuan and 100,000 yuan, the fee is 2.5% of the disputed amount; and for disputes involving an amount of between 100,000 yuan and 200,000 yuan, the fee is 2% of the disputed amount, in accordance with Article 13 (1) of the "Measures for the Payment of Litigation Fees" (effective April 1, 2007). Lawyer's fees can be charged on a per-case basis in accordance with the "Measures for the Management of Lawyer's Service Fees" (effective April 1, 2007). For cases with relatively low amounts, litigants can also file lawsuits on their own. After the amount of the subject matter is determined, the total cost can be estimated, and then a decision can be made on whether to hire a lawyer.

Q4: For disputes over security deposits in small claims litigation, how long do they have to be resolved within a few months?

For disputes over relatively small sums of deposit, the small claims procedure may be applied. The time limit for the first-instance trial is two months from the date of filing the case, and the first-instance judgment is final. This is in accordance with the relevant provisions of the Chapter on Summary Procedure of the Civil Procedure Law of the People's Republic of China (effective from January 1, 2022). The statute of limitations for requesting the return of the deposit is three years, starting from the date of termination of the contract or the date when the other party explicitly refuses to pay, in accordance with Article 188 of the Civil Code of the People's Republic of China (effective from January 1, 2021). The choice of procedure will affect the right of appeal, and before filing a lawsuit, it is necessary to confirm whether the amount of the subject matter falls within the scope of the small claims procedure.

Q5: Before sending out the reminder letter, which business information should I check today first?

Today, I will do three things first: First, log in to the National Enterprise Credit Information Disclosure System, print the business registration information of the headquarters, and confirm the defendant's full name, unified social credit code, and address; Second, check whether the receiving account on the receipt is consistent with the registered subject; Third, send a written reminder letter, stating the amount of the deposit, the fact of the contract termination, and the requirement for returning the deposit within a specified period, and keep the express delivery receipt. Once all three materials are in place, the case can be filed. If the subject's name is incorrect, the lawsuit will be dismissed. If the defendant still fails to return the deposit after the reminder period expires, the plaintiff can directly submit the litigation materials to the basic-level court with jurisdiction.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence, in order to avoid missing the statutory time limits. →Business and commercial legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer promptly.