Article Franchise+ – “How do I get rid of my debts: Also for franchisees and franchisors” – mr. AW Dolphijn – dated October 20, 2020
Is the situation hopeless, for example due to debts related to the corona crisis and is a rescue plan thwarted?
A reorganization may also be necessary for franchisees and franchisors who are in financial difficulties in order to continue to exist. The corona crisis will cause unbridgeable debts for some, which may make the continuation of the company seem hopeless. With the introduction of the Homologation Private Agreement (WHOA) Act, bankruptcy can be better prevented and a restart can be realized, whereby debts can be (partially) waived.
In practice, a rescue plan proves difficult if certain creditors are uncooperative. They can make the plan impossible. Those creditors may also include the Tax and Customs Administration, shareholders, lessor, supplier or franchisor or franchisees.
With the WHOA, creditors can now be even better forced to agree to a rescue plan. The court can then be asked to assess the rescue plan, considering whether and to what extent sleepers should participate. The rescue plan can then be approved and interfering creditors can be forced to agree to it.
In principle, the regulation gives the ailing entrepreneur great freedom in determining the content of the rescue plan. The legal procedure has short deadlines and a fast turnaround time. It is a complex legal procedure and that makes it important that preparations are made in good time.
The WHOA has already been adopted and is expected to come into effect on January 1, 2021. For many franchise companies, it will be important to draw up a rescue plan in good time or to anticipate such a plan.
mr. AW Dolphijn – franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Do you want to respond? Go to dolphijn@ludwigvandam.nl
![242Foto-doorlichten-fr.org](https://www.ludwigvandam.nl/wp-content/uploads/2020/12/242Foto-doorlichten-fr.org_-scaled.jpg)
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.