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
Competing without a non-competition clause?
The franchise non-compete obligation remains a source of dispute.
Non-competition clause set aside; big consequences
Non-competition clause set aside; big consequences
Judgment association of franchisees versus franchisor regarding the roll-out of an alternative franchise formula
Judgment association of franchisees versus franchisor regarding the roll-out of an alternative franchise formula
Continuation of operation, despite substantial backlog of franchise fee?
Can the franchisee continue to operate despite a significant franchise fee payment arrears?
Infringement of non-competition clause, where is the limit?
In this matter, a former freelancer of massage parlor Doctor Feelgood started his own massage parlor under the name Feelgood-store.
Research into numbers of franchise procedures
We recently published a brief survey of franchise jurisprudence over the past six years on the website.