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
The Franchise Association and Franchise Binding – Contracting 2019, No. 1
A contribution on common provisions in franchise agreements that require a franchisee to be a member of a franchisee's association.
Deception in recruiting a franchisee?
A ruling on whether the franchisor had made a misrepresentation when recruiting a franchisee.
Franchisor liable for forecasts from third parties – dated March 6, 2019 – mr. M. Munnik
According to settled case law, a franchisor acts unlawfully towards its franchisee when a franchisor independently conducts research in a careless manner and as a result...
The (hard) franchise agreement and duty of care qualified – WPNR 7226 (2019)
The government intends to include a legal regulation on franchising in the Civil Code to protect the weak position of the franchisee.
The municipality must allow temporary Albert Heijn
On 7 February 2019, the District Court of Noord-Holland ruled on whether the municipality should allow a temporary Albert Heijn
Franchisors may no longer impose changes to store hours – February 12, 2019 – mr. AW Dolphin
At the end of 2018, a draft of the “Freedom of Choice for Retailers (Opening Hours) Act” was presented.