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
Pronunciation not necessarily bad for C1000
Pronunciation not necessarily bad for C1000
No inspection of Association C1000 in documents C1000 acquisition.
The Court in preliminary relief proceedings has ruled on the question whether the C1000 franchisees have the right to know what agreements have been made about their fate.
What to do with your local competition
Of course, it is always annoying for the operator of a snack bar, for example, when a competitor joins.
Supermarket letter – 6
No inspection of Association C1000 in documents C1000 acquisition
mr. Th.R. Ludwig teaches a master class franchise course for NFV on September 16, 2014
On September 16, Mr. Ludwig discuss various legal aspects involved in franchise relationships during a course organized by the NFV.
Formido franchisee stumbles over burden of proof in prognosis case
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