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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Extension under “the then applicable conditions”
Many franchise agreements contain a clause regarding renewal of the franchise agreement
Franchise agreement or employment contract?
“Franchise Agreement” is not a legal term. The law sees a franchise agreement as an ordinary agreement.
The bankruptcy of a franchisor: end of the franchisee’s right of action?
Although fortunately sporadic in itself, it does happen that franchise organizations go bankrupt.
Statutory commercial interest in the franchise relationship
In daily practice, payment arrears often give rise to legal disputes.
Silent extension
Many franchise agreements contain provisions governing the termination and possible continuation of the existing franchise agreement.
Abuse of bankruptcy law
The right must be used for the purpose for which it was written.