Abuse of bankruptcy law
The right must be used for the purpose for which it was written. The purpose of bankruptcy law is to prevent people or companies from continuing to accrue debt that they cannot pay off.
Bankruptcy law is often used by a franchisor as a means of pressure to induce the franchisee to pay promptly. If payment is not made on time, the franchisor immediately threatens to file for the bankruptcy of the franchisee. No room is left for a possible counterclaim or to contest the claim.
In short, the bankruptcy law indicates that bankruptcy can be declared when there are several creditors and the debtor is in a state in which he has ceased to pay. The requirement that there must be more than one creditor will often be met when a franchisor claims to have a claim against a franchisee. As a creditor, for example, the current account credit already counts. However, the fact that there are several creditors is not a sufficient condition to be declared bankrupt. In addition, there must also be a situation in which payment has ceased.
When a franchisee leaves an invoice unpaid and the franchisee has a reason for this, it is therefore advisable to properly communicate and record the reason for non-payment. If the franchisee does not pay for a reason, he is not in the situation that he has ceased to pay, so the reason must be known. In this way, the franchisee avoids being wrongly put under pressure to file for bankruptcy or, more annoyingly, that, after the franchisor has already filed for bankruptcy, the situation has to be explained to the court, where there is actually a discussion about the amount of the invoice or the quality of the service or goods provided.
Ludwig & Van Dam franchise attorneys, franchise legal advice
![](https://ludwigvandam.megaconcept.nl/wp-content/uploads/2020/12/232court-min-400x222.jpg)
Other messages
Termination of lease agreement after purchase of retail space
At the end of 2010, the Supreme Court ruled on the waiting period that applies to termination due to urgent personal use.
Forecast: developments franchisees
The court in Arnhem has recently again ruled on so-called 'prognosis problems'.
Webshops by the franchisor: like it or not?
Today, more and more franchisors are realizing that, in addition to the distribution channel that the franchisees form
Failing to cooperate in checking hygiene requirements of the franchisee
The court in Amsterdam recently ruled in a case where a franchisee did not meet all hygiene requirements.
‘If the employee starts franchising…’. The employer’s duty of care as a franchisor
It will not be easy to assume that a 'normal' employee has given up his employment contract. However, what...
Sale of rental rights supermarket location not allowed
Recently, the Court of Appeal in The Hague has ruled that supermarket organizations have to switch locations for the penny.