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
Compensation for reputational damage to the franchisor
A developer of a digital platform for a franchisor had provided a platform that any third party could access.
Sale of a franchise company due to a non-competition clause: False construction or not?
Franchisees who are unwilling or unable to continue with the franchise company experience whether or not the non-competition clause is valid or not.
Prohibited Franchise Agreements: Conduct of Franchisees Among Others
Forms of franchising that do not involve a vertical relationship between the franchisor on the one hand and the franchisees on the other may be prohibited.
Formula change not justified – dated October 23, 2018 – mr. AW Dolphin
Formula change not justified
A new franchisor against will and thanks
Mergers between franchise organizations are no longer an exception. Multivlaai/Limburgia, DA/DIO, Emté/Jumbo are recent examples of this.
Supreme Court: Code of Honor regarding franchising has no legal effect – dated September 25, 2018 – mr. AW Dolphin
Supreme Court: Code of honor on franchising has no legal force