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Franchise Based On Turnover

Question

is it permissible to join a food franchise or any franchise where the franchisee is required to pay a percentage royalties based on turnover and advertising fees also based on turnover?

Answer

This kind of Ijarah (leasing/hiring) contract will be invalid according to the Shari’ah. The key reason for the contract being invalid is that the Ujrah (payable fees) for the services provided is Majhool (ambiguous/unknown).

Checked and Approved By:

Mufti Muhammed Saeed Motara Saheb D.B.

References

(وشرطها كون الأجرة والمنفعة معلومتين؛ لأن جهالتهما تفضي إلى المنازعة.)

قال الشامي رحمه الله: (قوله كون الأجرة والمنفعة معلومتين) أما الأول فكقوله بكذا دراهم أو دنانير وينصرف إلى غالب نقد البلد، فلو الغلبة مختلفة فسدت الإجارة ما لم يبين نقدا منها فلو كانت كيليا أو وزنيا أو عدديا متقاربا فالشرط بيان القدر والصفة وكذا مكان الإيفاء لو له حمل ومؤنة عنده، وإلا فلا يحتاج إليه كبيان الأجل، ولو كانت ثيابا أو عروضا فالشرط بيان الأجل والقدر والصفة لو غير مشار إليها، ولو كانت حيوانا فلا يجوز إلا أن يكون معينا بحر ملخصا. (رد المحتار 6/5 دار الفكر)

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