Entitlement to goodwill compensation for franchisee established – mr. AW Dolphijn – dated December 30, 2021
On December 22, 2021, the District Court of Rotterdam ruled for the first time, as far as is known, that a franchisee is entitled to a goodwill compensation, as referred to in the Franchise Act. The ruling has not (yet) been published.
The Franchise Act stipulates that under certain circumstances a franchisee may be entitled to compensation for goodwill. See Article 7:920 paragraph 1 of the Dutch Civil Code. Although the Franchise Act stipulates that the franchise agreement must contain a goodwill arrangement no later than 1 January 2023, the court ruled that this already applies in the relevant case.
The franchise agreement regarding a service formula had ended after the agreed term had expired. The customer base belonged to the franchisee. However, just before the end of the franchise agreement, the franchisor had informed the franchisee’s customers that the services provided by the franchisor would be continued, that the franchisee’s staff would be taken over and that the entire service would therefore remain unchanged. The former franchisee was not compensated at all by the franchisor. The court deems this contrary to law. An expert will have to determine the size of the goodwill value, for which the franchisor must advance the costs of the expert’s report.
Ludwig & Van Dam lawyers, franchise legal advice.
Do you want to respond? Then email to dolphijn@ludwigvandam.nl
![232court-min](https://www.ludwigvandam.nl/wp-content/uploads/2020/12/232court-min.jpg)
Other messages
Prognosis problems: sound location research?
Recently, the Court of Appeal in Arnhem has ruled in a case concerning soundness
New developments in forecasting problems
New developments in forecasting problems
Food Retail Day 2010
Food Retail Day 2010
Supreme Court confirms permit sale of franchisee outside exclusive district
Franchisee acquires and sells outside its territory, in territories not yet issued to other franchisees.
The further determination of the rental price of business premises at the request of the lessor/franchisor or the lessee/franchisee
Does the (sub)tenant/franchisee still pay a competitive rent for the leased business space?
Partial indebtedness of entrance fees due to lack of turnover and non-delivery of contractual performance by the franchisor
The franchisee rightly invokes unforeseen circumstances due to the lack of turnover and successfully claims moderation of the entrance fee due.