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.
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Penalty obligation for the franchisor for failure to comply with the franchise agreement
Penalty obligation for the franchisor for failure to comply with the franchise agreement
Need thorough research for a sound prognosis?
Is a thorough investigation by the franchisor always necessary to arrive at a sound prognosis?
Infringement of franchisee’s exclusivity rights: franchisor liable – October 18, 2016 – mr. DL van Dam
Infringement of franchisee's exclusivity rights: franchisor liable
Infringement of franchisee’s exclusivity rights: franchisor liable
Franchise agreements often contain exclusivity provisions that give franchisees exclusive rights
Advantage in the event of an illegal supply stop
Advantage in the event of an illegal supply stop
No contractual penalty for non-compete violation
No contractual penalty for non-compete violation