Franchise is an often used business model for the exploitation of a brand or formula. It is of crucial importance that the relationships with franchisees is clearly documented and formalized in a written agreement. We work for prominent national and international franchise brands and formulas, but also for starting formulas and for (associations of) franchisees. As a result of over 20 years of experience and knowledge in this area, we do not only provide you with legal advice, but also with practical and commercial relevant guidance and input, as your sparring partner, advisor or in the capacity as litigator. In case of cross border matters, you can rely on our worldwide network of specialized franchise lawyers.
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.
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
After a thorough review of the rules from 2010, the European Commission approved the new Vertical Block Exemption Regulation (VBER) and the accompanying new Vertical Guidelines on 10 May 2022. The revised VBER and vertical guidelines will enter into force on 1 June 2022.
A financial forecast is no guarantee for franchisees. Franchisees cannot simply pass on their disappointing turnover results to the franchisor.
The minimum implementation period of at least 2 months, i.e. the period between the date of publication and the date of entry into force, has not been respected.