The New Franchise Act: who owns goodwill?

The Franchise Act will (almost certainly) enter into force on January 1, 2021. This will be a historical event for the Netherlands, for it is the first actual Dutch Franchise Act. The impact of the new Act on practices of franchise organizations is major and requires adjustment not only as to method of operation but also of franchise agreements.
Franchise agreements must contain a clause on how goodwill, if any, must be assessed within the franchise company upon termination of the franchise agreement (Article 7:920 Dutch Civil Code).

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