Advisory Board on Regulatory Pressure (ATR) advises State Secretary Keijzer about the Franchise Act
The ATR recommends submitting the bill only after a number of points of advice have been taken into account. The advice is particularly worth reading and can be consulted via the link: https://www.atr-regeldruk.nl/wp-content/uploads/2019/02/30-U010-Ministerie-van-EZK-Wet-franchise-wgpdf
In short, it is first advised to actively inform franchisors and franchisees about this amendment to the law. Now that the consultation that has now closed shows that it has passed a large part of the industry, this seems to be extremely useful advice. It is also recommended to monitor the effectiveness of the law and to include an evaluation provision in the law. Now that the franchise agreement will move from an unnamed to a named agreement, this also seems like a welcome addition to the bill. The ATR also calls attention to the transitional period. In addition, the ATR asks for more clarification and definitions to be included in the bill for concepts that have not yet been further defined, such as “good franchisor and franchiseeship” “considerable consequences” etc. The ATR also recommends actively communicating goodwill calculation best practices so that parties know where they stand before concluding the franchise agreement. Finally, the ATR recommends including examples of what is meant by “conditions customary in trade”.
In short, the ATR is of the opinion that parts of the proposed legislation are not yet sufficiently concrete and known to have the desired effect in legal practice, or preventively, namely a more balanced franchise sector. We are particularly curious to what extent the Ministry takes into account the advice of the ATR.
mr. J. Strong – franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Do you want to respond? Go to strong@ludwigvandam.nl
Other messages
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On 30 June 20202, the Amsterdam Court of Appeal ruled that a franchisor is not entitled to an (unlimited) appeal to a contractual non-competition clause.
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Ludwig & Van Dam Advocaten is a law firm that specializes entirely in franchise and other partnerships and is the market leader of its kind in the Netherlands.
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Supermarket newsletter -28-
Supermarket newsletter -28-
Article Franchise+ – “Immediate information obligations of franchisors upon operation of the Franchise Act” – mr. AW Dolphijn – dated June 25, 2020
As soon as the Franchise Act enters into force, this will have an immediate effect on franchise agreements that already exist. The question is whether the information flows are set up optimally from a legal point of view.
Senate will adopt Franchise Act – dated 24 June 2020 – mr. AW Dolphin
The House of Representatives had unanimously adopted the proposal to introduce the Franchise Act on 16 June 2020