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
Other messages
Article Mr. C. Damen – “When does the obligation to provide proof apply for the submission of the franchise agreement?” dated August 17, 2020
Does the obligation to produce information apply to showing a (franchise) agreement in proceedings if the parties to the proceedings do not have a legal relationship to the (franchise) agreement?
Article Mr. AW Dolphijn – “How do you value a franchise company with a discharge loan?” – dated August 14, 2020
A discharge loan is a proven means of franchisors to find long-term franchisees.
Article De Nationale Franchise Gids: “Information obligations of the intended franchisee under the Franchise Act” – dated August 7, 2020 – mr. AW Dolphin
Although the purpose of the Franchise Act is to protect franchisees against franchisors, a number of obligations have also been laid down for franchisees.
Legislative text of the Franchise Act – dated July 24, 2020 – mr. AW Dolphin
The legal text of the Franchise Act was published in the Staatsblad on 1 July 2020. The full legal text reads as follows:
Law Franchise – dated July 23, 2020 – mr. AW Dolphin
The Franchise Act will have a considerable impact on both franchisors and franchisees.
Contractual dissolution requirements not observed? No legal dissolution of the franchise agreement – dated July 23, 2020 – mr. C. Damen
Can a franchisor terminate the franchise agreement if it has failed to comply with its own contractual requirements?