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
How do I keep my location? – June 6, 2019 – mr. K. Bastian
Location is of great importance to franchisors and franchisees, especially in the retail sector.
Supermarket letter – 25
Supermarket Newsletter No. 25
The benchmark for franchise forecasts – dated 29 May 2019 – mr. AW Dolphin
On 19 March 2019, the Den Bosch Court of Appeal, ECLI:NL:GHSHE:2019:1037, listed the case law of the Supreme Court on prognosis in franchising.
Franchise arbitration: too high a threshold? – mr. M. Munnik
When entering into an agreement, it is possible for the parties - contrary to the law - to designate a competent court. This also applies to the franchise agreement. Of this possibility
Franchise appeal for error due to incorrect forecasts and lack of support rejected – dated April 25, 2019 – mr. K. Bastian
The Court of Appeal of 's-Hertogenbosch ruled (ECLI:NL:GHSHE:2019:697) on the question whether the mere fact that forecasts did not materialize justifies the conclusion that the franchisee has been shortchanged...
Article De Nationale Franchise Gids: “Increasing protection against recruiting franchisees” – dated 2 April 2019 – mr. AW Dolphin
It is becoming increasingly apparent that recruited franchisees can be protected on the basis of the Acquisition Fraud Act.