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 .
Other messages
Duty of care franchisor in the pre-contractual phase
The District Court of Limburg ruled on 6 April 2017, ECLI:NL:RBLIM:2016:2843, that the franchisor has a duty of care towards the prospective franchisee in the pre-contractual phase.
Franchisee avoids joint and several liability in private
In a judgment of 28 March 2018, ECLI:NL:RBROT:2018:2913, the District Court of Rotterdam ruled on the meaning of the clause in the franchise agreement stipulating that
Incorrect prognosis due to lack of location research
The District Court of The Hague ruled on 21 March 2018, ECLI:NL:RBDHA:2018:3348, that a franchisor's forecast was unsound, as a result of which the franchisee had erred and the franchisor
Column Franchise+ – “Disputes about franchise fees”
Lately, it has also hit the biggest franchise organizations in the Netherlands. At the formulas of Albert Heijn, Hema, Etos, Bruna and Olympia, for example, there was and will be a lot
Ludwig & Van Dam sponsor of the Franchise Trophy 2018
On May 24, 2018, VVD member of parliament Martin Wörsdörfer and ID&T founder Duncan Stutterheim will present the Franchise Trophy 2018 on behalf of the Dutch Franchise Association.
Column Franchise+ – “Flashing quarrels about franchise fee must stop”
Lately, it has also hit the biggest franchise organizations in the Netherlands. At the formulas of Albert Heijn, HEMA, Etos, Bruna and Olympia, for example, there was and will be a lot