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
Court issues groundbreaking verdict: Rent reduction in substantive proceedings for catering operators as a result of the lockdown – mr. C. Damen – dated February 1, 2021
Last Wednesday, a controversial ruling was made and published for ...
Article Franchise+ -The risks of a minimum turnover requirement in the franchise agreement for the franchisor
Including a minimum turnover to be achieved in the franchise ...
Article The National Franchise Guide: “Minimum turnover as a forecast”
For many years now, the responsibility and liability of the ...
Article Franchise+ – “Franchise statistics 2019: decline trend continues, caused by the Franchise Act?”- mr. J. Sterk, mr. M. Munnik and mr. JAJ Devilee
Since 2007, Ludwig & Van Dam attorneys have been periodically ...
Signing a Franchise Agreement in the Digital Age – Mr. K. Bastiaans – dated December 14, 2020
Within today's society, under the guise of 'the new normal', digitization is increasing. The court will discuss in more detail the manner in which an agreement is accepted and the consequences.
The sale of tobacco at supermarkets will be banned in 2024. What are the constraints and opportunities for the supermarket business? – mr. C. Damen – dated December 8, 2020
To promote and discourage smoking cessation, the sale of tobacco in supermarkets will be banned in 2024.