FRANCHISE ALERT: January 1, 2023 is the deadline for implementation of the Dutch Franchise Act. Is your franchise agreement compliant?

The Dutch Franchise Act went into effect on January 1, 2021. The Act is mandatory law and franchisors and franchisees were required to conduct themselves in accordance with the Act as of that date. Specific contractual adjustments also had to be implemented immediately in new franchise agreements and renewal agreements.  A two-year transition period applies to current franchise agreements. This expires on January 1, 2023. Franchise organizations still have three months to comply with the implementation obligation.

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Tightening of statutory payment terms from 60 to 30 days as of 1 July 2022

On 1 July 2017, the Act to amend Book 6 of the Dutch Civil Code in connection with combating unreasonably long payment terms entered into force. This was a private member’s bill regulating that large companies cannot agree on a payment term of more than 60 days in their commercial relationship with SMEs in situations where the large company acts as debtor and the SME acts as creditor

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Unfair Trade Practices in Agriculture and Food Supply Chain Act adopted and in force by 1 November 2021

The Unfair Commercial Practices in Agriculture and Food Supply Chain Act implements a European directive on this subject and will take effect on 1 November 2021. The purpose of the Act is to strengthen the position of the farmer in the chain.
The law focuses on companies that are active in the agricultural and food supply chain.

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