Article Franchise+ – “Immediate information obligations of franchisors upon operation of the Franchise Act” – mr. AW Dolphijn – dated June 25, 2020
As soon as the passed bill enters into force, it has immediate effect
effect on franchise agreements that already exist. The plan is that Law
franchise will enter into force on 1 January 2021, so the question is whether the
information flows are legally optimally arranged.
An example of the information obligation in current franchise agreements
is the franchisor’s obligation to be accountable
about the use of the financial contributions paid by franchisees
to have. Through this obligation, the franchisee can up to
check to some extent whether the requested contributions are not unreasonably high.
Franchisees would then be able to reclaim the “overpayment”.
Another example is the franchisor’s obligation to provide certain
provide information of which the franchisor knows or reasonably knows
may suspect that it is important with a view to carrying out the
franchise agreement by the franchisee. So this is what it’s about
situations of pre-existing franchise agreements. Intended is the
provide the franchisee with the necessary transparency in a timely manner regarding certain
(proposed) acts of and developments at the franchisor. Than
can the franchisee prepare for this in good time, for example by doing so
necessary to request further information or consultation and in good time if necessary
make necessary adjustments to its own business operations or
make any financial reservations.
The information to be provided by the franchisor shall be such
manner, that that information is and remains accessible
for the other franchisee, as long as it serves the purpose. The to provide
information also serves the average franchisee within the
relevant chain clearly, comprehensibly and unambiguously formulated and
be designed.
By no means all franchise organizations have a clear picture of which information
which moment to share. Sometimes it is so important
trade secrets that it is undesirable to place the franchisees in a (too)
information at an early stage. It seems that many franchisor rush
will have to deal with the organization of legal information flows.
Diligence is called for now that January 1, 2021 is fast approaching.
mr. AW Dolphijn – franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Want
you respond? Go to dolphijn@ludwigvandam.nl
Other messages
Column Franchise+ – Franchisor acts unlawfully by providing a forecast through a third party
Disputes about forecasts between franchisor and franchisee remain a hot topic in franchising. After the Street-One judgment, it seems that franchisors feel safe
Column Franchise+ – Outsourcing forecasting to an administrative office does not benefit the franchisor
Disputes about forecasts between franchisor and franchisee remain a hot topic in franchising. After the Street-One judgment, it seems that franchisors feel safe
Outsourcing prognosis to an administrative office does not benefit the franchisor
Disputes about forecasts between franchisor and franchisee remain a hot topic in franchising.
Contribution Mr. AW Dolphijn in Contracting magazine 2018, no. 1: “The unilateral amendment clause in the franchise agreement.”
A contribution by mr Dolphijn has been published in the magazine Contracteren entitled: “The unilateral amendment clause in the Franchise Agreement”.
Supermarket letter – 22
No Dutch Franchise Code, but legislation on franchising.
No Dutch Franchise Code, but legislation on franchising
The State Secretary has announced that the Dutch Franchise Code ("NFC") will not be enshrined in law. However, there will be legislation on franchising.