Control and guidance
Situations regularly occur in practice in which a franchisee, as it is so nicely called, ceases to pay franchise fee, supplies and sometimes even rent to his franchisor for reasons of his own. This can take the form of simply no longer paying invoices within the terms set for this, but also by carrying out so-called reversals in the case of automatic payment arrangements.
Of course, a franchisee may have good reasons to make a payment a little later. Furthermore, there may of course be good reasons not to make a payment, for example if a delivery has not been delivered or has been delivered incorrectly. The franchisee concerned must inform the franchisor in writing in that case or in good time and announce that he is suspending his payment, stating the reasons for this. However, non-payment can also be a strong warning signal, especially when it takes on structural forms.
Franchisees sometimes use the tool of non-payment as an expression of dissatisfaction with the formula. This can also be an indication of business difficulties. Whatever the reason, it is generally important to continuously monitor the payment behavior of franchisees and, if problems arise, to take action at the earliest possible stage. In practice, it often happens that franchisees see their franchisor as a true bank and then fulfill all their financial obligations, except those to the franchisor. An unsolvable situation then arises which ultimately, especially when the franchise agreement is terminated, leads to substantial depreciation on the part of the franchisor. After all, it is difficult to pluck from a bald chicken. The higher the debts rise, the more difficult that situation will be to rectify later on.
The advice is therefore, once again, to keep a close eye on the payment behavior of franchisees and to act immediately if irregularities occur.
Ludwig & Van Dam franchise attorneys, franchise legal advice
![](https://ludwigvandam.megaconcept.nl/wp-content/uploads/2020/12/232court-min-400x222.jpg)
Other messages
Franchise Act passed by the House of Representatives – dated 16 June 2020 – mr. AW Dolphin
The Franchise Act was adopted by the House of Representatives on 16 June 2020.
Sandd franchisees find satisfaction in nullifying Sandd and PostNL merger – dated 12 June 2020
The franchisees of mail delivery company Sandd went to court in November, assisted by Ludwig & Van Dam Advocaten. Court of Rotterdam rules on takeover by PostNL.
Plenary debate dated June 9, 2020 in the Lower House of the Franchise Act – dated June 10, 2020 – mr. AW Dolphin
On 9 June 2020, the legislative proposal for the Franchise Act was discussed in plenary in the House of Representatives. An amendment and a motion have been tabled.
Franchising is “a bottleneck in tackling healthcare fraud” – dated 10 June 2020 – mr. AW Dolphin
According to the various supervisory authorities in the healthcare sector, franchise constructions can be seen as a non-transparent business construction in which the supervision of professional and
Article Franchiseplus: “Franchisors participate in franchisees” – dated June 3, 2020 – mr. AW Dolphin
Franchisors are increasingly participating in the franchisee's business. There are several benefits for both the franchisee and the franchisor.
Article The National Franchise Guide – “Corona discount on rent” – dated June 2, 2020 – mr. AW Dolphin
If a rental property is obliged to be closed due to corona, there may be a right to a rent reduction, according to the Northern Netherlands court.