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
Column Franchise+ – Franchisor acts unlawfully by providing a forecast through a third party
Disputes about forecasts between franchisor and franchisee remain a hot topic in franchising. After the Street-One judgment, it seems that franchisors feel safe
Column Franchise+ – Outsourcing forecasting to an administrative office does not benefit the franchisor
Disputes about forecasts between franchisor and franchisee remain a hot topic in franchising. After the Street-One judgment, it seems that franchisors feel safe
Outsourcing prognosis to an administrative office does not benefit the franchisor
Disputes about forecasts between franchisor and franchisee remain a hot topic in franchising.
Contribution Mr. AW Dolphijn in Contracting magazine 2018, no. 1: “The unilateral amendment clause in the franchise agreement.”
A contribution by mr Dolphijn has been published in the magazine Contracteren entitled: “The unilateral amendment clause in the Franchise Agreement”.
Supermarket letter – 22
No Dutch Franchise Code, but legislation on franchising.
No Dutch Franchise Code, but legislation on franchising
The State Secretary has announced that the Dutch Franchise Code ("NFC") will not be enshrined in law. However, there will be legislation on franchising.