Failing to cooperate in checking hygiene requirements of the franchisee
The court in Amsterdam recently ruled in a case where a franchisee did not meet all hygiene requirements. In addition, he was contractually obliged to resolve these shortcomings. The franchisor has summoned the franchisee to do so several times. Subsequently, the franchisee does not cooperate with a renewed inspection and in this way prevents an adequate inspection of hygiene requirements that are part of the franchise formula.
Ultimately, the franchise agreement is dissolved and the franchisor invokes the non-compete clause. In interlocutory proceedings, the presiding judge considers that the franchisee should at least have cooperated in a closer inspection and control of his establishment. Furthermore, the hygiene requirements, as pertaining to the franchise organization, were a contractual requirement. In addition, this had been further coordinated and agreed upon in the Franchise Council. The president therefore holds the franchisee to the non-competition clause.
Essentially, this is a simple matter. The franchisee should have contractually met the hygiene requirements. Furthermore, he should in any case have cooperated with a closer inspection and not – not even after summons from the franchisor – prevented a new inspection. As a result, he has blocked every conceivable defense and has raised the suspicion that the franchise agreement has been terminated with justification.
It goes without saying that HCCAP standards, et cetera, are of eminent importance for franchise relationships in fast food, catering and food. In addition, the checks were based on random checks by the Food and Consumer Product Safety Authority.
Mr Th.R. Ludwig – Franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice Would you like to respond? Mail to ludwig@ludwigvandam.nl
Other messages
Supermarket letter – 26
Supermarket Newsletter No. 26
Link franchise agreement and rental agreement uncertain? – dated October 14, 2019 – mr K. Bastiaans
It is no exception within a franchise relationship that the parties agree that the franchise agreement and the rental agreement are inextricably linked.
Termination of franchise agreement in case of changes in leased retail space – September 27, 2019 – mr. AW Dolphin
Termination of a franchise agreement in light of a substantial change in the leased retail space.
Article De Nationale Franchisegids: “Distribution of (potential) customers prohibited?” – September 17, 2019 – mr. AW Dolphin
Within many franchise organizations, agreements are made about the recruitment of (potential) customers in a certain area.
District protection no protection against termination due to urgent own use – dated September 17, 2019 – mr. AW Dolphin
As a landlord, can the franchisor terminate the lease for urgent own use, in the sense of district protection, while this would be excluded on the basis of the franchise agreement.
Unreasonable compensation at the end of the franchise agreement – dated September 17, 2019 – mr. AW Dolphin
Some franchise agreements stipulate that the franchisee always owes the franchisor a minimum of a certain amount of costs upon termination of the franchise agreement.