Franchise & Law No. 5 – Acquisition Fraud and Franchising Act
The Acquisition Fraud Act came into effect on 1 July 2016. This includes amendments to Section 6:194 of the Dutch Civil Code. In short, the amendment means that if there is misrepresentation when offering goods or services in business relationships, this will result in an unlawful act. This implies that the Acquisition Fraud Act also applies in the pre-contractual phase of entering into a franchise agreement.
In this contribution, the civil law aspects of the Acquisition Fraud Act and the pre-contractual phase in entering into franchise agreements will be examined in more detail, in particular the reversal of the burden of proof.
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A new block exemption regulation
Most recently, on 1 October 2002, the European Commission issued a new block exemption regulation.
New policy rules for assessing (fictitious) franchising employment
Recently, the State Secretary for Finance clarified the assessment criteria for the franchisee's independence.
Rayon protection: a nuance.
Most franchise agreements include an exclusive territory for the benefit of the franchisee. The essence of that exclusivity is that neither the franchisor nor fellow franchisees
Franchising and agency
Franchise constructions can sometimes contain elements of agency.
Franchisees: do not conclude arbitration clauses, but do take out legal expenses insurance
In conflicts between franchisor and franchisee, it often happens that the parties do not fight with equal arms.
Steady line in case law will be continued!
The judgment of the Supreme Court of 25 January 2002 has already been discussed several times in this series of articles.