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

Other messages

Ludwig & Van Dam attorneys summon Sandd and PostNL on behalf of the Sandd franchisees – dated 9 January 2020 – mr. AW Dolphin

The Association of Franchisees of Sandd (VFS) has today summoned Sandd and PostNL before the court in Arnhem. The VFS believes that Sandd and PostNL are letting the franchisees down hard.

By Alex Dolphijn|09-01-2020|Categories: Statements & current affairs|

Article The National Franchise Guide: “Why joint and several liability, for example, next to private?” – dated 7 January 2020 – mr. AW Dolphin

Franchisees are often asked to co-sign the franchise agreement in addition to their franchise, for example. Sometimes franchisees refuse to do so and the franchise agreement is not signed.

Ludwig & Van Dam Advocaten assists Sandd franchisees: Franchisees Sandd challenge postal monopoly in court – dated 12 November 2019 – mr. AW Dolphin

The Association of Franchisees of Sandd (VFS) is challenging the decision of State Secretary Mona Keijzer to approve the postal merger between PostNL and Sandd before the court in Rotterdam.

By Alex Dolphijn|12-11-2019|Categories: Statements & current affairs|Tags: , |

Franchisee trapped by non-compete clause? – dated October 21, 2019 – mr. AW Dolphin

The District Court of East Brabant has ruled that a franchisee was still bound by the non-competition clause in the event of premature termination of the franchise agreement.

Link franchise agreement and rental agreement uncertain? – dated October 14, 2019 – mr K. Bastiaans

It is no exception within a franchise relationship that the parties agree that the franchise agreement and the rental agreement are inextricably linked.

By mr. K. Bastiaans|14-10-2019|Categories: Franchise Knowledge Center / National Franchise and Formula Letter Publications|
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