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
![](https://ludwigvandam.megaconcept.nl/wp-content/uploads/2020/12/232court-min-400x222.jpg)
Other messages
Agreements Related to the Franchise Agreement
On 31 October 2017, the Arnhem-Leeuwarden Court of Appeal issued similar judgments for nineteen franchisees (ECLI:NL:GHARL:2017:9453 through ECLI:NL:GHARL:2017:9472).
Column Franchise+ – mr. J. Sterk – “Franchisee does body check better than franchise check”
A gym embarks on a franchise concept that offers “Body Checks” and discounts to (potential) members in collaboration with health insurers.
Seminar Mrs. J. Sterk and M. Munnik – Thursday, November 2, 2017: “Important legal developments for franchisors”
Attorneys Jeroen Sterk and Maaike Munnik of Ludwig & Van Dam Advocaten will update you on the status of and developments surrounding the Dutch Franchise Code and the Acquisition Fraude Act.
Goodwill at end of franchise agreement
In a case before the Amsterdam Court of Appeal on 26 September 2017, ECLI:NL:GHAMS:2017:3900 (Seal & Go), a franchisee claimed compensation for goodwill (ex Article 7:308 of the Dutch Civil Code) after the
Article in Entrance: “Resignation”
Fire an employee who is not performing well? The subdistrict court is strict. If you, as an employer, cannot demonstrate that you have done everything yourself to make the person function better, it will be
Cost price that is too high as a hidden franchise fee
An interlocutory judgment of the District Court of The Hague dated 30 August 2017, ECLI:NL:RBDHA:2017:10597 (Happy Nurse) shows that the court has considered the question whether the