For clarity
The last period shows that discussions regarding goodwill payments at the end of a franchise partnership are still numerous. These discussions usually boil down to a franchisee’s opinion that his franchisor should pay him a goodwill amount for the customer base built up by that franchisee during the term of the franchise agreement. This discussion occurs in particular in situations where either the operation of the franchise establishment in question is completely discontinued or the franchisor takes over the establishment. This discussion is less common when the franchisee, within the rules of the franchise agreement, transfers his business to a successive franchisee, because in those cases a market-based acquisition price is often paid.
In the other two situations, however, the discussion does take place, whereby the franchisee concerned is undoubtedly inspired by the legal provisions regarding agency. Without wanting to go into detail here, it should be noted that it does include a goodwill arrangement at the end of the agreement. However, such a regulation does not exist in franchising relationships. Therefore, unless otherwise agreed between the parties, a franchisor is not obliged to make any goodwill payment to a departing franchisee on the basis of the franchise agreement as such. If that does happen, then this is solely the result of negotiations between the parties and the payment, where appropriate, of a price in line with the market. Goodwill, it must be repeated, is pre-eminently a subject that is subject to market forces and, unless otherwise agreed in principle, is at the discretion of the entrepreneurs involved.
Ludwig & Van Dam franchise attorneys, franchise legal advice
![](https://ludwigvandam.megaconcept.nl/wp-content/uploads/2020/12/232court-min-400x222.jpg)
Other messages
Franchise ordered to compensate franchisor for lost fee income.
A recent ruling focused on the question of whether the ...
Article Franchise+: “Is the franchisor bound by the statutes of the franchisees’ association?” – mr. M. Munnik – dated November 11, 2021
Within a franchise organization it is not uncommon for franchisees ...
Article The National Franchise Guide: “Humps in the standstill period” – mr. T. Meijer – dated October 19, 2021
The Franchise Act has been seen by a large number ...
Unilateral changes to opening hours are prohibited from 1 January 2022
On July 14, 2021, a legislative amendment to the shopping ...
Litigation as a franchisees association.
The Eye Wish Opticiens franchisees have recently filed opposition to ...
Between the franchisor’s diagnosis and forecasting duty
In the leading legal scientific journal WPNR, Mr. Dolphijn a ...