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
Column Snack courier no. 8: “With 7 steps you comply with the privacy law”
Much has already been written about the General Data Protection Regulation (GDPR). The law has been applicable since 25 May, but many companies have not yet had their privacy policy in order.
Forced to switch to a different franchise formula at the existing location?
If a franchise formula ceases to exist, for example if it is incorporated into another organization, the question may be whether the franchisee is also obliged to be incorporated into
Column Franchise+ – 50 percent more franchise lawsuits
The 2018 Legal Franchise Statistics published by Ludwig & Van Dam Advocaten shows that there has been a 50% increase in the number of judgments in court cases rendered in 2017 compared to
A closer look at the intention to introduce franchising legislation
On May 23rd, State Secretary Mona Keijzer informed the House of Representatives about the imminent franchise legislation. The National Franchise Guide previously published this article.
Consumer Protection Applies to Franchisee
The consumer enjoys broad protection on the basis of the Civil Code.
Update Franchise Law
On 23 May 2018, the government indicated that it would prepare a legal regulation that creates a framework for four sub-areas of cooperation between franchisors and franchisees that are crucial