Castler closes Pre-Series A funding of $6 Million led by Flipkart, Capital 2B, IIFL Fintech Fund, Venture Catalysts & Zerodha

How does escrow work for franchising?

When a franchisor and franchisee agree to enter into a franchise agreement, the franchisee will typically deposit their initial franchise fee into an escrow account. The escrow agent will then hold the funds in trust until all of the conditions of the franchise agreement have been met. Once all of the conditions have been met, the escrow agent will release the funds to the franchisor.