It may also be because the deposit is a certain fee charged by the franchisor to ensure the franchisor to perform the franchise contract. After the expiration of the contract, the deposit shall be returned to the franchisee. Both parties to the franchise shall agree on the joining deposit in accordance with the principle of fairness and reasonableness.
In order to avoid disputes over the return of the franchise fee arising from the early termination of the contract by one or both parties, both parties should clearly stipulate the nature and return conditions of the franchise fee in the contract. If the franchisor has fulfilled the obligation to collect the franchise fee, the franchise fee will not be returned. If the franchisor constitutes a fundamental breach of contract or fraud, resulting in the termination of the contract, it shall return the franchise fee.
But if it was only an oral agreement at that time, it would be difficult to get legal support without written evidence now. It is better to suggest that both parties negotiate on their own to minimize losses.
Legal basis: Article 115 of the Contract Law of People's Republic of China (PRC), the parties may pay the deposit to the other party as the guarantee of the creditor's rights in accordance with the Guarantee Law of People's Republic of China (PRC). After the debtor performs the debt, the deposit shall be used as the price or recovered. If the party paying the deposit fails to perform the agreed debt, it has no right to demand the return of the deposit; If the party receiving the deposit fails to perform the agreed debt, it shall return the deposit twice.