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
The professional problem solver: the judge reinvented
In our society, a true alternative circuit of problem solvers exists, including in the form of mediators.
Nice weather as an excuse?
Legal discussions are regularly held about the question of whether disappointing visitor numbers
Acquisition of inventory and goods
Many franchise agreements, especially where retail situations are concerned
Franchise Self-Employment: Another Episode
In practice, it often happens that a franchisor finds it difficult to recruit new franchisees.
Is franchising always the right form of cooperation?
Franchising is in most cases a form of cooperation that involves all parties involved
Intellectual property: get it right
Franchisors and franchisees also have to deal with what is so nicely called intangible products of the mind.