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
Supermarket letter – 26
Supermarket Newsletter No. 26
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.
Termination of franchise agreement in case of changes in leased retail space – September 27, 2019 – mr. AW Dolphin
Termination of a franchise agreement in light of a substantial change in the leased retail space.
Article De Nationale Franchisegids: “Distribution of (potential) customers prohibited?” – September 17, 2019 – mr. AW Dolphin
Within many franchise organizations, agreements are made about the recruitment of (potential) customers in a certain area.
District protection no protection against termination due to urgent own use – dated September 17, 2019 – mr. AW Dolphin
As a landlord, can the franchisor terminate the lease for urgent own use, in the sense of district protection, while this would be excluded on the basis of the franchise agreement.
Unreasonable compensation at the end of the franchise agreement – dated September 17, 2019 – mr. AW Dolphin
Some franchise agreements stipulate that the franchisee always owes the franchisor a minimum of a certain amount of costs upon termination of the franchise agreement.