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 .
Other messages
Duty of care franchisor in the pre-contractual phase
The District Court of Limburg ruled on 6 April 2017, ECLI:NL:RBLIM:2016:2843, that the franchisor has a duty of care towards the prospective franchisee in the pre-contractual phase.
Franchisee avoids joint and several liability in private
In a judgment of 28 March 2018, ECLI:NL:RBROT:2018:2913, the District Court of Rotterdam ruled on the meaning of the clause in the franchise agreement stipulating that
Incorrect prognosis due to lack of location research
The District Court of The Hague ruled on 21 March 2018, ECLI:NL:RBDHA:2018:3348, that a franchisor's forecast was unsound, as a result of which the franchisee had erred and the franchisor
Column Franchise+ – “Disputes about franchise fees”
Lately, it has also hit the biggest franchise organizations in the Netherlands. At the formulas of Albert Heijn, Hema, Etos, Bruna and Olympia, for example, there was and will be a lot
Ludwig & Van Dam sponsor of the Franchise Trophy 2018
On May 24, 2018, VVD member of parliament Martin Wörsdörfer and ID&T founder Duncan Stutterheim will present the Franchise Trophy 2018 on behalf of the Dutch Franchise Association.
Column Franchise+ – “Flashing quarrels about franchise fee must stop”
Lately, it has also hit the biggest franchise organizations in the Netherlands. At the formulas of Albert Heijn, HEMA, Etos, Bruna and Olympia, for example, there was and will be a lot