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

Article Franchise+: “How far does the protection of a non-compete clause extend?” – mr. AW Dolphijn – dated March 8, 2022

A franchisor invests a lot of time, energy and money ...

Franchisee circumvents non-competition clause through partner – mr. RCWL Albers – dated February 24, 2022

In a recent case, a graphics services franchisor attempted to ...

By mr. R.C.W.L. Albers|24-02-2022|Categories: Franchise Agreements, Statements & current affairs|Tags: , , , |

Article De Nationale Franchise Gids: “Changing the franchise formula is possible” – mr. T. Meijer – dated February 8, 2022

Many franchise formulas are constantly evolving. The adage 'to stand ...

Can a franchisor increase the interim franchise fee and change the formula? – mr. AW Dolphijn – dated January 21, 2022

A franchisor must be able to adjust the franchise formula ...

Go to Top