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Ref: tij005/08

February 2008 

Q: I intend franchising my business. Can I ask for a franchise fee and is it permissible to collect royalty on turnover.

A:

According to our research leasing out of registered intellectual property is permissible. Hence, you may charge a fee for leasing out your franchise name. Charging royalty on turnover is acceptable provided it is capped by a fixed figure.

 

Mufti Shafiq Jakhura
Iftaa Department, Darul Ihsan Islamic Services Centre
 
I concur with the answer:
Mufti Zubair Bayat
Ameer, Darul Ihsan Islamic Services Centre

 

 
 

 

 
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