Goodwill at end of franchise agreement
In a case before the Amsterdam Court of Appeal on 26 September 2017, ECLI:NL:GHAMS:2017:3900 (Seal & Go), a franchisee claimed goodwill compensation (ex Article 7:308 of the Dutch Civil Code) after the franchisor had terminated the lease, in order to continue the operation of the company itself.
In the first instance, the District Court of Noord-Holland dated 24 December 2015, ECLI:NL:RBNHO:2015:11974, rejected the franchisee’s claim because there was no advantage on the part of the franchisor. The clientele was due to the location and not the entrepreneurial activity. The company was located at Schiphol Airport and it is that location that apparently, according to the court, resulted in the (accumulated) customer base.
The Court of Appeal upheld the District Court’s judgment and added that the mere significant increase in turnover and profit realized by the former franchisee does not provide sufficient concrete leads to conclude that the franchisor has enjoyed an attributable advantage. to the franchisee’s business activities.
mr. AW Dolphijn – Franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Do you want to respond? Go to dolphijn@ludwigvandam.nl .
![232court-min](https://www.ludwigvandam.nl/wp-content/uploads/2020/12/232court-min.jpg)
Other messages
Use of telephone and fax numbers after the
Most franchise agreements stipulate that after termination of the franchise agreement, the former franchisee must comply with a non-competition clause.
Recent developments regarding resale price maintenance
On February 13, 2004, the administrative judge of the District Court of Rotterdam rendered a judgment between Secon Group BV
Reinvestment / restyling within an existing franchise concept.
In practice, we have recently seen more and more developments that point to a conversion/restyling of the franchise organization
Agency: some outlines
In practice, questions are asked with some regularity regarding the legal nature
Rental price change
Following on from earlier published articles of my hand, I will once again deal with a tenancy law issue below.
Franchise Fees
An extremely important subject for both the franchisee and the franchisor that is invariably included in the franchise agreement concerns the franchise fees, often referred to as the term