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
Article Franchise & Law No. 7 – Franchise agreement as general terms and conditions
Uniformity of the franchise formula and (therefore also) uniformity of the agreements with the franchisees will often be of great importance to the franchisor.
The franchisee’s customer base
If the partnership between a franchisee and a franchisor ends, the question of who will continue to serve the customers may arise.
The healthcare franchisor is not a healthcare provider
The Healthcare Quality, Complaints and Disputes Act (WKKGZ) creates the possibility of government measures being imposed on healthcare institutions to guarantee the required quality of healthcare.
The restructuring within the Intergamma formats from a legal perspective
The legal reality is sometimes more unruly than the factual. The controversial issue at Intergamma is a good example of this.
Open vacancy: lawyer-employee and/or lawyer-trainee!
Due to the departure of one of our colleagues, we are looking for a new lawyer-employee or lawyer-trainee. Interested?
Non-compete clause on the sale of a franchise business
How strict should a non-compete clause be when selling a franchise business to the franchisor? This question was raised in a dispute in which the District Court of Gelderland op