Franchisor prohibits opening (franchise) company
A franchisor applied for interim measures to prohibit a franchisee from opening a franchisee’s business. See Court of the Northern Netherlands 26 June 2018, ECLI:NL:RBNNE:2018:2428. The franchisor believed that the franchisee had wrongly failed to consult with the franchisor before opening the business, to which the franchisee had invited 80 to 100 people.
The preliminary relief judge rules that the franchisee is in breach of contract by deliberately planning the opening of the company outside the franchise agreement without referring to the franchisor, while it has been established that the company was set up thanks to the franchise agreement. Moreover, it has been established that the franchisor and franchisee had precisely agreed that the opening of the company would take place in joint consultation. The preliminary relief judge prohibits the official opening of the company planned by the franchisee, despite the fact that the invitations had already been sent and the planning had already been established.
mr. AW Dolphijn – franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Do you want to respond? Go to dolphijn@ludwigvandam.nl .
Other messages
Insured and well
Occasionally, a franchise agreement contains a clause that obliges the franchisee to take out legal expenses insurance.
Rayon protection II: limitation of the exclusive area.
As a follow-up to the contribution in the previous Newsletter, this time the (possibilities of) curtailment of the exclusive franchise area will be discussed. In most franchise agreements
Franchise Agreements and Terms and Conditions
Franchise agreements often include concise arrangements with regard to delivery and payment conditions.
Horizontal and vertical cooperation
In practice, purchasing organisations, whether or not in the form of a cooperative, sometimes function - partly - as a sales organisation.
Competition and brandability: recent developments
The president of the Court of Arnhem very recently once again considered a number of competition law issues in preliminary relief proceedings
Master franchising: a double dependency
Various franchise organizations in the Netherlands are based on a so-called master franchise construction