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

Categories faq: Franchisor & Franchisee

How can I choose a reputable escrow agent for franchising?

When choosing an escrow agent for franchising, it is important to choose a reputable company with a good track record like Castler.

What are the risks of using escrow for franchising?

There are a few risks associated with using escrow for franchising, including:

The possibility of fraud or misrepresentation
The possibility of the escrow agent becoming insolvent
The possibility of delays in the transfer of ownership

What are the costs of using escrow for franchising?

The cost of using escrow for franchising will vary depending on the specific needs of the franchisor and franchisee. However, in general, the costs are typically very reasonable.

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.