Column Franchise+ – mr. J Sterk: “Court orders fast food chain to extend franchise agreement
The right to extend the franchise agreement
The case is set to begin this year. The franchisee has been refusing for years to sign the new franchise agreement that is offered upon renewal, as this would entail a deterioration of his legal position. However, the franchisor considers the existing franchise agreement outdated and strives for uniformity. However, the franchisee wants to negotiate the content with his lawyer first. The franchisor does not like this and points out that due to the conflict that has arisen and the interference of the lawyer, fruitful cooperation would no longer be possible. The franchisor then terminates the franchise agreement. The franchisee then starts summary proceedings. The court is of the opinion that the franchisor was too hasty and should have negotiated the terms of the extension with the franchisee and his lawyer. The franchisor is sentenced to extend the franchise agreement until an irrevocable decision has been made in proceedings on the merits that have apparently yet to be started, and that can take years, including an appeal and possibly even cassation.
Other messages
Article Franchise+ – “Recipient’s liability in a franchise context, what exactly is that about?” – mr. K. Bastiaans – dated November 24, 2020
The phenomenon of hirer's liability means that a third party can be held liable for the debts of another under certain conditions.
Franchisor liable for errors made by a franchisee? – mr. AW Dolphijn – dated November 23, 2020
A franchise organization asked the court to declare that the franchisor is not liable if a franchisee has made a serious mistake with a customer.
The Real Intentions of the Parties to a Franchise Agreement – Mr. C. Damen – dated November 23, 2020
What really was the idea of the parties when they concluded a franchise agreement?
Circumventing the prohibition of competition in the franchise agreement – mr. AW Dolphijn – dated November 10, 2020
A non-competition clause in a franchise agreement is often experienced as objectionable by franchisees, especially if the non-competition clause also applies after the franchise agreement has expired.
Article Franchise+ – “How do I get rid of my debts: Also for franchisees and franchisors” – mr. AW Dolphijn – dated October 20, 2020
A reorganization may also be necessary for franchisees and franchisors who are in financial difficulties in order to continue to exist.
Article De Nationale Franchise Gids: “Reinvestment obligation for franchisees has limits” – dated October 13, 2020 – mr. RCWL Albers
In practice, it often happens that franchisors choose to renew their franchise formula and the appropriate image