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
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
Newsflash: Franchise Act adopted today. Franchisors, get started!
Today is the day. The Franchise Act has been adopted by the Senate. As of 1 January 2021, the act enters into force. As to several drastic rules a transition period of 2 years will apply (non-competition clause, right of approval and place of business’ valuation), but waiting until 2023 is out of the question.
Franchise Act adopted by Dutch Parliament on 16th of June
After a long run-up, the Franchise Act is expected to become reality within soon. Franchisors are well advized to anticipate this upcoming law which will most likely have a very brief transitory period.
Content and Introduction of Act:
The Franchise Act has been adopted by the Dutch Parliament on 16th of June.
Sales Forecast is no Guarantee: once more the “legal error torpedo” of franchisees recently missed its target
Sales Forecast is no Guarantee: once more the “legal error torpedo” of franchisees recently missed its target
Quite frequently franchise organizations hire an external market research firm to have them carry out a local market survey (VPO), when the opportunity of a new outlet location presents itself.