Franchising and agency
Franchise constructions can sometimes contain elements of agency. In concrete terms, this is the case when the franchisee mediates in the establishment of a transaction between the consumer and the franchisor and/or mediates in the establishment of a transaction between the consumer and a party other than the franchisor.
Examples include constructions in the financial services sector, in which the franchisee mediates, for example, in arranging mortgages between the consumer and a lender to be named (bank or insurance company, or another lender) or constructions in which franchisees take care of for the conclusion of temporary employment or temporary employment contracts between the mediated workers and (a large) client.
If there is a typical franchise situation, i.e. a situation in which the franchisee actively sells his products himself, and also carries out marketing, in short, applies a franchise formula, the competition regulations, as they apply to all franchise relationships, also apply when there are there are agency elements in a franchise construction. Franchisor and franchisee must therefore be aware that in the case of specific termination arrangements, subjects such as exclusive purchase, exclusive territory, etc. must also be dealt with correctly under competition law.
In practice, the fields of agency and franchising can be combined well if the specific elements from both areas are combined in advance and, in particular, communication is made between franchisor and franchisee.
Ludwig & Van Dam franchise attorneys, franchise legal advice
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Amsterdam Court of Appeal restricts franchisor’s appeal to non-competition – dated July 6, 2020 – mr. T. Meijer
On 30 June 20202, the Amsterdam Court of Appeal ruled that a franchisor is not entitled to an (unlimited) appeal to a contractual non-competition clause.
Vacancy lawyer-employee
Ludwig & Van Dam Advocaten is a law firm that specializes entirely in franchise and other partnerships and is the market leader of its kind in the Netherlands.
Qualitaria franchisee put in his shirt – dated July 2, 2020 – mr. JAJ Devilee
The District Court of Zeeland-West-Brabant has rendered a judgment in legal proceedings initiated by a Qualitaria franchisee.
Supermarket newsletter -28-
Supermarket newsletter -28-
Article Franchise+ – “Immediate information obligations of franchisors upon operation of the Franchise Act” – mr. AW Dolphijn – dated June 25, 2020
As soon as the Franchise Act enters into force, this will have an immediate effect on franchise agreements that already exist. The question is whether the information flows are set up optimally from a legal point of view.
Senate will adopt Franchise Act – dated 24 June 2020 – mr. AW Dolphin
The House of Representatives had unanimously adopted the proposal to introduce the Franchise Act on 16 June 2020