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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Bankruptcy franchisor
In recent years, the number of bankruptcies has risen considerably as a result of the poor economic situation.
Is it possible to suspend?
In practice, it often happens that in conflicts between franchisors and franchisees, the franchisee involved
Declaration of employment relationship: clarity and certainty now a fact.
Many a franchise relationship carries a limited or significant risk of a disguised employer/employee relationship
Price maintenance and non-competition clause
Franchise agreements are increasingly governed by competition law advancing from Europe.
Indirect price maintenance
As is well known in franchising practice, resale price maintenance is out of the question.
Indemnity I
Many franchise contracts contain clauses that must indemnify the franchisor against the conduct of the franchisee.