Investing in a filling station

· 15 Shaʻban 1443 AH1 min readEnglish

Question

Is it acceptable for me to invest in a service station which includes a Pick n Pay franchise? Also, the franchise is required to pay royalties on a monthly basis.

Answer

It will be permissible for you to invest in the filling station which includes a Pick n Pay franchise. However, you should ensure that food items sold in the food store are Halaal.

The franchise provides services such as advertising material; pamphlets containing special offers that are available at all Pick n Pay stores in the region, and other information, on a monthly basis. You as the shopkeeper, should consider paying the monthly royalties in lieu of these services provided. This would be a loophole to validate the royalty charges in terms of Shariah, provided that these “royalties” (which in essence is a fee in lieu of the services that they provide), are a fixed monthly amount and not a percentage of your sales.

Answered by
Mufti Mohammed Desai
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

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