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 .
Other messages
Franchise Act will take effect on January 1, 2021 – mr. AW Dolphijn – dated December 3, 2020
The Franchise Act was already adopted on July 1, 2020, but it has now also been established by Royal Decree that the Franchise Act will enter into force on January 1, 2021.
Supermarket newsletter -29-
Supermarket newsletter -29-
Article Franchiseplus: “Divide the pain” – mr. Th.R. Ludwig – dated December 1, 2020
The corona crisis has brought many franchisors and franchisees into ...
Article De Nationale Franchise Gids: “Settlement problems with franchisee who is a general partnership” – mr. JAJ Devilee – dated November 30, 2020
In a recent dispute, two ex-spouses faced each other in an appeal procedure regarding the question whether the ex-wife forfeited penalty payments against the private company.
Article Franchise+ – “Recipient’s liability in a franchise context, what exactly is that about?” – mr. K. Bastiaans – dated November 24, 2020
The phenomenon of hirer's liability means that a third party can be held liable for the debts of another under certain conditions.
Franchisor liable for errors made by a franchisee? – mr. AW Dolphijn – dated November 23, 2020
A franchise organization asked the court to declare that the franchisor is not liable if a franchisee has made a serious mistake with a customer.