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
Attorneys Ludwig & Van Dam look back on transition process C1000
Attorneys Ludwig & Van Dam look back on transition process C1000
Court of Appeal upholds misrepresentation and wrongful conduct in the event of an unsatisfactory prognosis
The franchisee claimed annulment of the franchise agreement on the grounds of error, because the franchisor allegedly presented an unsatisfactory prognosis.
Directors’ Liability Concerning Franchising: Deception or Collaboration Plan
Directors' Liability Concerning Franchising: Deception or Collaboration Plan
Jumbo completes the C1000 conversion operation in more than 1100 days
Jumbo completes the C1000 conversion operation in more than 1100 days
Secretly another franchisee? Explanation contra proferentem
On March 4, 2015, the Court of Appeal of The Hague issued a judgment on whether the franchisee should have been changed.
A property owner and Plus have agreed that Plus will rent a supermarket location, but may only use it as a supermarket, stating ‘Plus Market’ in parentheses.
A property owner and Plus have agreed that Plus will rent a supermarket location, but may only use it as a supermarket, stating 'Plus Market' in parentheses.