How does the Franchise Act protect novice franchisees?
Starting your own business is in almost all cases a decision that entails major changes. The starting entrepreneur is confronted with great uncertainties and risks, but is given an opportunity to benefit from his own company. The choice to start the business is a trade-off between the benefits and risks. It is therefore of the utmost importance to have sufficient information to make this assessment. Only on the basis of all relevant information can a wise entrepreneur make the right choice. He or she will therefore have to collect as much information as possible in order to make an informed decision.
An article about this has been published in the trade magazine Franchise+. You can download the article HERE .
Ludwig & Van Dam lawyers, franchise legal advice.
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Article De Nationale Franchise Gids: “Information obligations of the intended franchisee under the Franchise Act” – dated August 7, 2020 – mr. AW Dolphin
Although the purpose of the Franchise Act is to protect franchisees against franchisors, a number of obligations have also been laid down for franchisees.
Legislative text of the Franchise Act – dated July 24, 2020 – mr. AW Dolphin
The legal text of the Franchise Act was published in the Staatsblad on 1 July 2020. The full legal text reads as follows:
Law Franchise – dated July 23, 2020 – mr. AW Dolphin
The Franchise Act will have a considerable impact on both franchisors and franchisees.
Contractual dissolution requirements not observed? No legal dissolution of the franchise agreement – dated July 23, 2020 – mr. C. Damen
Can a franchisor terminate the franchise agreement if it has failed to comply with its own contractual requirements?
Legal ban on unilaterally changing opening hours by the franchisor – July 13, 2020 – mr. J. Strong
Legislative proposal of the State Secretary which, in short, means that the shopkeeper may not be bound by unilateral changes to the opening hours during the term of the agreement.
No right to extension of franchise agreement – July 6, 2020 – mr. AW Dolphin
Can a franchisor refuse to renew the franchise agreement if the franchisee does not agree to amended terms of a new franchise agreement?