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
Other messages
Article The National Franchise Guide – “Corona discount of 50% on the rent” – mr. AW Dolphijn – dated September 15, 2020
Disappointing turnover due to the corona crisis may mean that the rent is halved, even if the rent is partly turnover-related.
Article Franchise+ – “Franchisor uses “derivative formula” (without his knowledge)” – mr. AW Dolphijn – dated September 9, 2020
Many franchisors will not be aware of the fact that they use a "derived formula" as referred to in the Franchise Act.
Article Franchise+ – “Obligations and rights of the starting franchisee” – mr. AW Dolphijn – dd
What should you pay attention to as a starting franchisee, what are your obligations and what are your rights when concluding the franchise agreement?
Article Mr. C. Damen – Three conditions for the right to customer compensation for the agent upon termination of the agency agreement – dated August 26, 2020
In the agency relationship between an agent and a client (the principal), the parties record their cooperation agreements in an agency agreement. When the principal enters into the agency agreement
Article Mr. C. Damen – “When does the obligation to provide proof apply for the submission of the franchise agreement?” dated August 17, 2020
Does the obligation to produce information apply to showing a (franchise) agreement in proceedings if the parties to the proceedings do not have a legal relationship to the (franchise) agreement?
Article Mr. AW Dolphijn – “How do you value a franchise company with a discharge loan?” – dated August 14, 2020
A discharge loan is a proven means of franchisors to find long-term franchisees.