Franchisee may not be bound by a non-competition clause
Non-competition clause, franchisee
Recently, the court of Utrecht ruled again on the Super de Boer case against one of its (former) franchisees.
The franchisee involved, who is also a sub-tenant of Super de Boer, did not give up and sold to C1000 and, after a (too) late offer, did not see any point in becoming Jumbo after all. Obviously, the franchisee could not be obliged to do so either. In that sense, the court’s previous verdict was hardly surprising. However, Super de Boer canceled the collaboration. More interesting, therefore, is the court’s subsequent ruling in summary proceedings that the franchisee does not have to comply with the non-competition clause for the time being, since the premature termination of the franchise agreement can therefore be blamed on Super de Boer. With this, Super de Boer, which demanded compliance with the non-competition clause, shot itself in the foot. This also offers perspectives for franchisees who are confronted with a (premature) termination of the franchise agreement by their organization and who are limited (only) by the non-competition clause in choosing a different formula. Whether this will also benefit the franchisee in question in the long term is still the question now that Super de Boer has also started a procedure to evict the leased property, partly on the grounds of urgent personal use. Since the ruling of the Supreme Court regarding Coop/Vomar, the chance that this claim will also be rejected is smaller. The franchisee then only has a claim for an allowance for relocation and refurbishment costs, as well as a separate claim for compensation for the advantage enjoyed by Super de Boer/Jumbo insofar as it will also operate a supermarket at the same location. If this is the case because the main lease has also been terminated.
Ludwig & Van Dam franchise attorneys, franchise legal advice
Other messages
Article in Entrance: “New owner”
“The catering company where I work has been taken over. The new owner now says that I no longer have to work for him, but can he refuse me as an employee?”
Directors’ liability in the settlement of a franchise agreement
Privately, can the director of a franchisee legal entity be liable to the franchisor if the franchisee legal entity wrongfully fails to provide business to the franchisor?
Column Franchise + – mr. Th.R. Ludwig: “Towards strict liability”
The Supreme Court recently ruled in a prognosis issue.
Article in Entrance: “Rentals”
“The landlord increased the prices of the property every year, but he hasn't done this for 2 years, maybe he forgets. Can he still claim an overdue amount later?”
No valid appeal to non-compete clause in franchising
On 28 February 2017, ECLI:NL:RBGEL:2017:1469, the provisional relief judge of the District Court of Gelderland ruled on whether a franchisee could be bound by a non-compete clause.
Structurally unsound revenue forecasts from the franchisor
On 15 March 2017, the District Court of Limburg ruled in eight similar judgments (including ECLI:NL:RBLIM:2017:2344) on the franchise agreements of various franchisees of the P3 franchise formula.