Article Franchise+: “With our franchise formula you will earn mountains of gold.” dated 10 July 2019 – mr. AW Dolphin
For example, the Amsterdam District Court ruled that a franchisor merely praised the franchise formula in general terms by stating that a certain average turnover is achieved by the franchisees. The fact that this average turnover is not achieved by a particular franchisee does not mean that the franchisor should not have made the announcement. Also, in another case, it was held that there were only general promotions with the statement that the franchise formula was “the best price level!” and is able “to achieve this best price level because you benefit from international purchasing advantage because you buy from the source.”
Promotions are not always permissible. After all, advertising can go further than an endorsement and may contain information, such as omissions, that is misleading are. It will not always be obvious when there are generalized praise and the provision or withholding of inadmissible information. information on the acquisition of franchisees by franchisors. The legislator has provided more clarity about the impermissible with the introduction of the Acquisition Fraud Act. Under acquisition fraud be deceptive commercial practices involving the use of certain sales techniques aimed at gaining trust and arousing expectations in order to induce the other to enter into an agreement, whereby the consideration is not or hardly properly provided. The law Acquisition fraud explicitly refers to misleading statements such as ten regarding “statistical data”. It is also worth considering in this context historical data or forecasts. Of commendation in general terms will then not soon. With franchising in particular, the franchise formula will be promoted by the franchisor with historical data or forecasts. The the question then is whether that commendation takes place in “general terms”. The distinction between permissible promotions and misleading information remains a gray area, despite the relevant legislation. Each individual case will always have to be judged on its own.
Click here for the entire article.
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
Column Snack courier no. 8: “With 7 steps you comply with the privacy law”
Much has already been written about the General Data Protection Regulation (GDPR). The law has been applicable since 25 May, but many companies have not yet had their privacy policy in order.
Forced to switch to a different franchise formula at the existing location?
If a franchise formula ceases to exist, for example if it is incorporated into another organization, the question may be whether the franchisee is also obliged to be incorporated into
Column Franchise+ – 50 percent more franchise lawsuits
The 2018 Legal Franchise Statistics published by Ludwig & Van Dam Advocaten shows that there has been a 50% increase in the number of judgments in court cases rendered in 2017 compared to
A closer look at the intention to introduce franchising legislation
On May 23rd, State Secretary Mona Keijzer informed the House of Representatives about the imminent franchise legislation. The National Franchise Guide previously published this article.
Consumer Protection Applies to Franchisee
The consumer enjoys broad protection on the basis of the Civil Code.
Update Franchise Law
On 23 May 2018, the government indicated that it would prepare a legal regulation that creates a framework for four sub-areas of cooperation between franchisors and franchisees that are crucial