Franchise agreement/sublease agreement link
Court of Dordrecht, subdistrict sector
Franchise agreements and sublease agreements must be adequately linked. After all, the sublease agreement is governed by mandatory tenancy law. This cannot simply be deviated from. An adequate link takes place by means of a subdistrict court request, to be made when the franchise agreement and sublease agreement are signed. Subsequently, the subdistrict court may approve deviations from the mandatory tenancy provisions, for example with regard to the term of the sublease agreement and the moment of termination. With an adequate link, the franchise agreement and sublease agreement are equal in terms of term and termination.
A case has recently been submitted to the subdistrict sector of the court. The franchisor invoked deviating rental clauses that had not been approved in advance by the subdistrict court judge. The subdistrict court concluded that there is no mixed agreement, but two separate agreements. As a result, the franchisee was able to successfully invoke the sublease agreement, even though the franchise agreement had been terminated. Despite the termination of the franchise agreement, the franchisor, as a sub-lessor, should have taken into account the interests of the sub-tenant/franchisee. The subtenant/franchisee suffered damage as a result, for which the franchisor/sublessor was liable, according to the court in Dordrecht. The former franchisee obtained a strong position through this construction.
If the franchisor and franchisee wish to enter into a mixed agreement, they must always request an adequate connection to the subdistrict court. Simultaneous termination is possible in this way.
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
Article De Nationale Franchise Gids: “Information obligations of the intended franchisee under the Franchise Act” – dated August 7, 2020 – mr. AW Dolphin
Although the purpose of the Franchise Act is to protect franchisees against franchisors, a number of obligations have also been laid down for franchisees.
Legislative text of the Franchise Act – dated July 24, 2020 – mr. AW Dolphin
The legal text of the Franchise Act was published in the Staatsblad on 1 July 2020. The full legal text reads as follows:
Law Franchise – dated July 23, 2020 – mr. AW Dolphin
The Franchise Act will have a considerable impact on both franchisors and franchisees.
Contractual dissolution requirements not observed? No legal dissolution of the franchise agreement – dated July 23, 2020 – mr. C. Damen
Can a franchisor terminate the franchise agreement if it has failed to comply with its own contractual requirements?
Legal ban on unilaterally changing opening hours by the franchisor – July 13, 2020 – mr. J. Strong
Legislative proposal of the State Secretary which, in short, means that the shopkeeper may not be bound by unilateral changes to the opening hours during the term of the agreement.
No right to extension of franchise agreement – July 6, 2020 – mr. AW Dolphin
Can a franchisor refuse to renew the franchise agreement if the franchisee does not agree to amended terms of a new franchise agreement?