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
Know-how franchise formula now also legally protected
Know-how is one of the most essential parts of a franchise formula.
Franchisors may no longer impose changes to shopping hours
At the end of 2018, a draft of the “Freedom of Choice for Retailers (Opening Hours) Act” was presented.
Draft bill on franchising
A law is being drafted for the franchising industry to improve relations between franchisors and franchisees.
No franchise agreement, despite the designation
Not everything is what it looks like. Even if the franchisor and franchisee believe that there is a franchise agreement, the legal situation may be different.
Compensation for reputational damage to the franchisor
A developer of a digital platform for a franchisor had provided a platform that any third party could access.
Sale of a franchise company due to a non-competition clause: False construction or not?
Franchisees who are unwilling or unable to continue with the franchise company experience whether or not the non-competition clause is valid or not.