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
The healthcare franchisor is not a healthcare provider
The Healthcare Quality, Complaints and Disputes Act (WKKGZ) creates the possibility of government measures being imposed on healthcare institutions to guarantee the required quality of healthcare.
The restructuring within the Intergamma formats from a legal perspective
The legal reality is sometimes more unruly than the factual. The controversial issue at Intergamma is a good example of this.
Open vacancy: lawyer-employee and/or lawyer-trainee!
Due to the departure of one of our colleagues, we are looking for a new lawyer-employee or lawyer-trainee. Interested?
Non-compete clause on the sale of a franchise business
How strict should a non-compete clause be when selling a franchise business to the franchisor? This question was raised in a dispute in which the District Court of Gelderland op
Franchisor fails by invoking a non-compete clause
Although a non-compete clause is validly formulated in a franchise agreement, a situation may arise that is so diffuse that the franchisor cannot invoke it.
Acquisitions and Franchise Interest
It will not have escaped anyone's attention, certainly in the last year it can only be concluded that the Dutch economy is once again on the rise.