Article De Nationale Franchise Gids: “Information obligations of the intended franchisee under the Franchise Act” – dated August 7, 2020 – mr. AW Dolphin
Although the purpose of the Franchise Act is to protect franchisees
against franchisors, there are also some obligations for it
franchisees determined. Especially with regard to the phase prior to
a number of conditions apply to the conclusion of the franchise agreement
explicit legal rules pertaining to the intended franchisee.
The intended franchisee must, before closing the
franchise agreement, to the franchisor timely information about its
to disclose its own financial position, insofar as this is reasonable
importance. After all, the exploitation of the franchise formula requires both
commencement and during the franchise relationship investments on the part of the
franchisee. In the pre-contractual phase, the franchisee will therefore
must make information available to the franchisor
gives the (to be obtained) financial scope and coverage for such
able to make investments.
The Prospective Franchisee shall continue to serve, within the bounds of reasonableness
and fairness, to take the necessary measures to prevent him
proceeds to close under the influence of incorrect assumptions
of the franchise agreement. The intended franchisee therefore serves a certain
to conduct research. In any case, this can be counted on
properly reviewing the information received from the franchisor,
if necessary, calling in expert assistance in a timely manner and, if necessary, the
making inquiries with other franchisees within the chain about their
experiences with the exploitation of the relevant franchise formula.
In retrospect, if a (prospective) franchisee does not, franchisors,
have not been properly or not fully informed, then the law can
franchise affect the validity of the franchise agreement. Also
could a franchisee be liable for damages on the basis of the act
against the law.
mr. AW Dolphijn – franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Want
you respond? Go to dolphijn@ludwigvandam.nl
Other messages
Recoverability in times of crisis
A recurring theme in this contribution to the First Franchise Newsletter is payment discipline
Termination of a dealer agreement in relation to price maintenance
At the end of 2007, the Court of Appeal in Arnhem issued an interesting ruling concerning
Restyling forecasts
As is well known, a good franchisor offers its franchisee a good deal at the start
Nuanced franchise agreement on the grounds of error is a nuanced consideration
The Court in preliminary relief proceedings in Rotterdam recently ruled that a franchisor is not automatically responsible
The duty to offer in the franchise agreement is not valid
Recently, the Court of Appeal determined that an obligation of the franchisee
Franchise agreements of an indefinite term cannot be terminated just like that
Contrary to what is sometimes thought, franchise agreements for an indefinite period cannot be terminated just like that.