Franchise Board Rules
In practice, various forms of consultation circulate between franchisor and franchisee. This consultation is often structured in the form of accompanying regulations. We know these regulations in many shapes and sizes.
Good Franchise Council regulations are characterized by the possibility of allowing proportional and possibly regional representation to participate in the Franchise Council. Ideally, these members of the franchise council can be nominated or elected by their own supporters. However, it is certain to set up exaggerated regulations too elaborately. Good Franchise Council regulations are no more than a vehicle for the proper functioning of the Franchise Council. Franchise council regulations that are overly enthusiastic must be prevented from ending up in endless meeting sessions, both nationally and regionally. The question arises who benefits from this. The authority of the council itself is also central to various franchise regulations. Does the franchise council have advisory powers or can it actually force decisions by means of far-reaching control or, for example, a right of veto?
Linked to this is also the principle of the representative authority of the franchise council for the benefit of all franchisees. In practice, there is still the idea that the franchise council can simply bind the supporters. However, without very explicitly defined powers of the individual franchisee with regard to this power, this is by no means the case. When a franchisor makes agreements with the franchise council regarding a restyling, the individual franchisee is therefore not bound by this, unless this has been expressly agreed between the franchise council and the franchisee. Franchise rules don’t have to be too complicated. The regulations are short, practical and unambiguous. Composition and authority are easy to formulate. In any case, it must be prevented that the regulations are a prelude to Polish country days and thus completely overshoot their goal. The same also applies to the functioning of the franchise council itself.
Ludwig & Van Dam franchise attorneys, franchise legal advice
Other messages
Article Mr. C. Damen – “When does the obligation to provide proof apply for the submission of the franchise agreement?” dated August 17, 2020
Does the obligation to produce information apply to showing a (franchise) agreement in proceedings if the parties to the proceedings do not have a legal relationship to the (franchise) agreement?
Article Mr. AW Dolphijn – “How do you value a franchise company with a discharge loan?” – dated August 14, 2020
A discharge loan is a proven means of franchisors to find long-term franchisees.
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?