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
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.