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.
Other messages
Know-how franchise formula now also legally protected
Know-how is one of the most essential parts of a franchise formula.
Franchisors may no longer impose changes to shopping hours
At the end of 2018, a draft of the “Freedom of Choice for Retailers (Opening Hours) Act” was presented.
Draft bill on franchising
A law is being drafted for the franchising industry to improve relations between franchisors and franchisees.
No franchise agreement, despite the designation
Not everything is what it looks like. Even if the franchisor and franchisee believe that there is a franchise agreement, the legal situation may be different.
Compensation for reputational damage to the franchisor
A developer of a digital platform for a franchisor had provided a platform that any third party could access.
Sale of a franchise company due to a non-competition clause: False construction or not?
Franchisees who are unwilling or unable to continue with the franchise company experience whether or not the non-competition clause is valid or not.