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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Penalty obligation for the franchisor for failure to comply with the franchise agreement
Penalty obligation for the franchisor for failure to comply with the franchise agreement
Need thorough research for a sound prognosis?
Is a thorough investigation by the franchisor always necessary to arrive at a sound prognosis?
Infringement of franchisee’s exclusivity rights: franchisor liable – October 18, 2016 – mr. DL van Dam
Infringement of franchisee's exclusivity rights: franchisor liable
Infringement of franchisee’s exclusivity rights: franchisor liable
Franchise agreements often contain exclusivity provisions that give franchisees exclusive rights
Advantage in the event of an illegal supply stop
Advantage in the event of an illegal supply stop
No contractual penalty for non-compete violation
No contractual penalty for non-compete violation