Franchising

Q: I have been receiving numerous requests from across the country to open branches of my business all over, since I have a unique business concept. However, because of the capital and the headache involved with the admin, I wish to start franchising/licensing out our concept.

I want to let my franchisees deal directly with my suppliers, and then ask them for a monthly commission/royalty based on purchases. This income will be to cover the set-up of an admin department to negotiate national prices. Is this allowed in Islam?

Financial constraints

Q: Globally, nationally and locally, our businesses are going through a financial downturn. The majority of businessmen are becoming despondent and concerned as financial targets and obligations cannot be met. After putting shariah compliant mechanisms in place, please pray and advise on the way forward. Situations amongst some businessmen are critical as they are forced to go the bond and bank route, becoming involved in interest. As much as one does not want to go the haraam way, there seems to be no alternative. As we seem to have reached the end of the road, please advise. Also, we will appreciate if the Ulama could advise and guide the masses in these trying times from the mimbar etc. We love you all and appreciate your favours upon the ummah.