Delivery stop by franchisor not allowed
On 9 February 2017, the provisional relief judge of the District Court of Gelderland, ECLI:NL:RBGEL:2017:1372, ruled that a franchisor was not allowed to suddenly stop its obligation to supply the franchisee, despite the fact that the franchisee was in substantial payment arrears.
The franchisee had significantly reduced the payment arrears. For several years the franchisor had granted a substantial supplier credit for the remainder. It has not been established that the franchisor indicated at any time that the payment arrears were unacceptable to it as franchisor and that it had to be reduced to a certain amount within a certain period, or that it had to be repaid in full. The franchisor was therefore not free to suddenly take the position not to supply the franchisee anymore and to claim the full outstanding amount at once, without observing a term.
Another thing is that the granting of the supplier credit does not automatically entail the obligation to allow and continue to allow a further increase. The franchisor was therefore (well) free to supply the franchisee against payment in advance.
Franchisors cannot simply assume that they can always put the franchisee in jeopardy if the franchisee has payment arrears
mr. AW Dolphijn – Franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice.
Do you want to respond? Go to dolphijn@ludwigvandam.nl .
![232court-min](https://www.ludwigvandam.nl/wp-content/uploads/2020/12/232court-min.jpg)
Other messages
Franchisor liable for forecasts from third parties – dated March 6, 2019 – mr. M. Munnik
According to settled case law, a franchisor acts unlawfully towards its franchisee when a franchisor independently conducts research in a careless manner and as a result...
The (hard) franchise agreement and duty of care qualified – WPNR 7226 (2019)
The government intends to include a legal regulation on franchising in the Civil Code to protect the weak position of the franchisee.
The municipality must allow temporary Albert Heijn
On 7 February 2019, the District Court of Noord-Holland ruled on whether the municipality should allow a temporary Albert Heijn
Franchisors may no longer impose changes to store hours – February 12, 2019 – mr. AW Dolphin
At the end of 2018, a draft of the “Freedom of Choice for Retailers (Opening Hours) Act” was presented.
When does a franchisor go too far when recruiting franchisees?
The judgment of the Court of Appeal of Arnhem-Leeuwarden on 5 February 2019 dealt with whether the franchisor had acted impermissibly when recruiting the franchisees.
Advisory Board on Regulatory Pressure (ATR) advises State Secretary Keijzer about the Franchise Act
In short, it is first advised to actively inform franchisors and franchisees about this amendment to the law.