Column Franchise+ – mr. Th.R. Ludwig: “Judge: franchisor’s duty of care comparable to that of a bank”
Various judgments in 2016 made it clear how high the standard of care for a franchisor towards its franchisees is.
In one of the relevant issues, the franchisees purchased from the franchisor, who in turn purchased the inventory from various suppliers, which was then delivered to the franchisees. The franchisor therefore pre-financed through these purchasing costs. This situation is very similar to direct supply by the franchisor in its capacity as supplier.
Other messages
Termination of the franchise agreement does not automatically lead to termination of the sublease agreement
Franchisor terminated the franchise agreement with the franchisee. The franchise agreement stipulated that termination of the franchise agreement would also terminate the sublease agreement
Despite the franchisee’s counterclaim, the franchisor justified dissolution of the franchise contract
The Rotterdam court recently ruled that payment arrears of more than € 80,000 is sufficient for the franchisor to dissolve the franchise agreement.
Actually using a building, but without a lease
In franchising, it often happens that the business premises from which the franchisee operates his business
Switching franchisee from one franchise organization to another is not without risks
The court in Amsterdam recently ruled in a case where a franchisee switched from one franchisor to another, in the same industry.
Franchisor: protect your brand(s) well
As a franchisor, you have developed a franchise formula that distinguishes itself, among other things
Capital requirement in a competition law perspective
In practice, it often happens that, like any business, a franchisor or a franchisee needs