Can a franchise completely exclude refunds to customers under a service agreement

This question often arises in entrepreneurship, where franchise businesses are developing, this is more about the B2C area, etc.

The possibility of a return in the field of franchising is determined by the general provisions of civil legislation (Article 782 of the Civil Code of the Russian Federation) and the Law on Consumer Protection:

The client has the right to withdraw from the performance of the contract for the performance of works (provision of services) at any time, subject to compensation to the contractor for the expenses actually incurred by them related to the fulfillment of obligations under this agreement (Article 32 of the Law).

It should be emphasized that the legislation indicates the possibility of a refund, but always with the condition of compensation for the expenses actually incurred by the contractor. The actual costs incurred for franchises may include the costs that the business incurred in providing the first services to customers.

The franchise cannot completely exclude a refund, even if it is written in the contract – the client will easily challenge these provisions and return the funds.

 Thus, in the franchise service agreement, the right of customers to a refund cannot be completely canceled. The legislation only provides for the possibility to withhold the actual expenses incurred.

 In this regard, it is recommended to set prices for the first classes higher than for subsequent ones in order to reduce losses in the event of such situations.