Franchisor fails by invoking a non-compete clause
Although a non-compete clause is validly formulated in a franchise agreement, a situation may arise that is so diffuse that the franchisor cannot invoke it. See the judgment of the Arnhem-Leeuwarden Court of Appeal of 10 October 2017, ECLI:NL:GHARL:2017:8777.
The Court of Appeal shares the view of the preliminary relief judge who previously ruled that the franchisor could not invoke the non-compete clause. This was because the leased retail property had to make way for housing and the franchisor had terminated the franchise agreement per canceled on January 1, 2012. In anticipation of new business premises to be rented from the franchisor, the franchisee (temporarily) operated a business under his own name. It was uncertain whether the franchisor would still be able to offer (suitable) business premises to continue the collaboration.
If, upon termination of a franchise agreement, a franchisor leaves open whether the post-non-compete clause applies, this ambiguity can under certain circumstances be held against the franchisor.
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Do you want to respond? Go to dolphijn@ludwigvandam.nl .
![232court-min](https://www.ludwigvandam.nl/wp-content/uploads/2020/12/232court-min.jpg)
Other messages
Side effects of non-compete clauses
Many franchise agreements contain a non-compete clause, both during the term
Non-competition clause
Franchise agreements often include a non-compete clause
To rule is to look into the future
Supply and demand. Concepts that dominate the entire commercial world.
For clarity
The last period shows that discussions regarding goodwill payments at the end of a franchise partnership are still numerous.
Franchise agreements and horizontal cooperation
Franchise agreements are, by their nature, so-called vertical in nature.
Qualification of renting industrial premises and its consequences
Under the new tenancy law, it is clearer than before when there is a question of renting industrial space