Franchise
Franchise is an increasingly common form of collaboration to exploit a brand or formula. Properly recording the relationships with franchisees is crucial for the success of the formula. We work for leading national and international but also starting franchise organizations and (interest groups of) franchisees. Thanks to more than 20 years of knowledge and experience in this field, we not only share our legal knowledge, but also practical and commercially relevant experiences as a sparring partner, adviser or litigation lawyer. For international matters or aspects, we have a worldwide network of franchise lawyers.
Annelies van Zoest
partner/lawyer
Tessa de Mönnink
partner/lawyer
News
Recent judgement Arnhem Court of Appeal: a financial forecast is no guarantee for franchisees
A financial forecast is no guarantee for franchisees. Franchisees cannot simply pass on their disappointing turnover results to the franchisor.
Royal Decree confirms effective date of 1 January 2021 for new Dutch Franchise Act
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.
Franchise Act: no anticipation by court
As of 1 January 2021, the Dutch Franchise Act is in force. This Act regulates the relationship between franchisors and franchisees, mainly to protect the legal position of franchisees.
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).
Distribution Update
In a decision of the District Court of Amsterdam of 18 August 2020, a contractual termination clause allowing to terminate the Value Added Reseller Agreement (a so-called “VAR”) with a term of notice of 6 months has been set aside