Converted C-1000 entrepreneurs to AH not profitable
‘New’ AH’ers think about sales
‘Exploitation not feasible’
ROTTERDAM – Various ex-C1000 entrepreneurs who are now active under the AH flag are considering selling their supermarket. “Even with a subsidy from AH, profitable operation is not feasible,” says lawyer Jeroen Sterk, in Distrifood – an independent newspaper for supermarkets.
As a legal adviser, the lawyer from the Rotterdam firm of Ludwig & van Dam assists various ‘new’ AH entrepreneurs. The lawyer does not want to say how many entrepreneurs are negotiating with AH about the sale of their supermarket. ‘It concerns several entrepreneurs who, after conversion, have to deal with heavily loss-making operations. Albert Heijn does come to their aid with subsidies, but even with that a profitable operation is not feasible,’ says Sterk .
The option to sell the store back to AH is the last life buoy for those entrepreneurs, albeit an unattractive one. In this way, they risk incurring a double loss. They have suffered serious damage in the operation and, because of the existing agreements on goodwill compensation, are also at risk of having to sell their shop at a much lower price. At the beginning of this year, Wim Brouns from Helmond already sold his shop back to AH because the switch from C1000 to AH cost him €70,000 in turnover per week.
In addition to talks about selling shops, AH is at risk of ending up in legal proceedings with various entrepreneurs. The supermarket company has already received the first summons and, according to Sterk , more are being prepared. It concerns an entrepreneur who reproaches AH that the company has issued careless turnover forecasts and that it does not feel sufficiently responsible for the damage suffered. AH has now responded to that summons. Sterk is not impressed by that reply. “AH thinks it has done enough to limit the damage.” The case is now expected to be continued before the (civil) court. Whether that leads to a verdict is uncertain. In many cases, the court will initially aim for a settlement.
Mr. J. Strong – Franchise attorney
Ludwig & Van Dam Franchise attorneys,franchise legal advice.
Do you want to respond? Mail to Sterk@ludwigvandam.nl
Other messages
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.
Article Franchise+ – Franchisees enjoy the same protection as employees and commercial agents with regard to a non-competition clause – dated 7 May 2020 – mr. RCWL Albers
It often happens that, especially by franchisees, the validity of a post-contractual non-compete clause is considered too lightly.
The support agreement for the Retail sector in this Corona crisis – dated 15 April 2020 – mr. K. Bastian
On April 10, 2020, the Ministry of Economic Affairs, together with a number of landlords, retailers and banks, reached a support agreement.
Court rules that corona crisis does not constitute force majeure – dated April 10, 2020 – mr. AW Dolphin
If payment cannot be made due to a decrease in income, then there is not always a force majeure situation.
Important information for directors of franchisees associations: Online meetings and decision-making in times of corona – dated April 10, 2020 – mr. J. Strong
Emergency law provisions for legally valid decisions without physically meeting within the association structure.