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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Update Franchise Law
On 23 May 2018, the government indicated that it would prepare a legal regulation that creates a framework for four sub-areas of cooperation between franchisors and franchisees that are crucial
On the edge of a franchisee’s exclusive territory
The Court of Appeal of Arnhem-Leeuwarden ruled on 15 May 2018, ECLI:NL:GHARL:2018:4395, on the question whether a franchisor has a branch just over the edge of the exclusively granted protection area.
Can a franchisee cohabit with a competing entrepreneur?
Can a franchisee violate a non-compete clause by cohabiting with someone who runs a competing business? On January 12, 2018, the District Court of Central Netherlands ruled
Not an exclusive catchment area, but still exclusivity for the franchisee
The judgment of the District Court of Noord-Holland dated 18 April 2018, ECLI:NL:RBNHO:2018:3268, ruled on the exclusivity area of a franchisee.
Supermarket letter – 23
AH may not reduce wages when taking over personnel from AH franchisees;
Termination or dissolution of the franchise agreement by the franchisee
In principle, franchise agreements can be terminated prematurely, for example by cancellation or dissolution. On 21 March 2018, the District Court of Overijssel ruled on ECLI:NL:RBOVE:2018:1335 on