Excusable infringement of territory exclusivity
The District Court of Rotterdam recently ruled on a matter concerning infringement of the agreed district exclusivity. The franchise agreement stipulated that the franchisee enjoyed the exclusive right to operate the formula within a radius of 15 kilometers from its location. In fact, however, several branches of the franchisor were located within a radius of 15 kilometers. Franchisee claimed to suffer damage as a result of this infringement. The franchisee requested an injunction in interlocutory proceedings subject to forfeiture of a penalty. The court rules that the alleged damage by the franchisee has not been substantiated or has not been sufficiently substantiated and that there is therefore no urgent interest in instituting such a claim in summary proceedings. The court also considers that the exclusivity was in fact not complied with and the franchisee was also aware of this. Moreover, the franchisee had failed to protest in time. The franchisee’s claims were rejected in full.
The foregoing means that franchisees cannot lightly invoke provisions in the franchise agreement without a well-founded interest if the parties actually act differently over a long period of time. In those cases, the exceeding of the standard may be excusable. For franchisors, it is therefore easier to enforce standards that are exceeded if the provisions are observed more strictly in practice and if the policy to this effect is clear. In particular, franchisees must protest in good time.
mr J. Sterk – franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice Would you like to respond? Mail to info@ludwigvandam.nl
![](https://ludwigvandam.megaconcept.nl/wp-content/uploads/2020/12/232court-min-400x222.jpg)
Other messages
Sale of a franchise company, a subject to consider in good time
When entering into the franchise agreement, the fact that and under what conditions is not always considered in good time
Delivery of the rented property at the end of the rental agreement
Article 7:224 of the Dutch Civil Code stipulates that the tenant will leave the rented property at the end of the rental agreement
Dissolution due to deviation from recommended prices: unacceptable under competition law
An important statement was recently made with regard to margin management and ditto pricing policy.
If the rental agreement is terminated by the lessor/franchisor, there may be compensation to be paid to the lessee/franchisee by the lessor/franchisor
Lease agreements relating to medium-sized business premises are frequently terminated
The franchise pre-agreement; the pre-contractual phase
It regularly happens that the franchisor and franchisee enter into a franchise pre-agreement
What is specific franchise mediation and when is mediation an option?
It occurs in the best marriages and also in franchise relationships: a difference of opinion arises.