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.
Do you want to respond? Then email to dolphijn@ludwigvandam.nl
Other messages
Article in Entrance: “New owner”
“The catering company where I work has been taken over. The new owner now says that I no longer have to work for him, but can he refuse me as an employee?”
Directors’ liability in the settlement of a franchise agreement
Privately, can the director of a franchisee legal entity be liable to the franchisor if the franchisee legal entity wrongfully fails to provide business to the franchisor?
Column Franchise + – mr. Th.R. Ludwig: “Towards strict liability”
The Supreme Court recently ruled in a prognosis issue.
Article in Entrance: “Rentals”
“The landlord increased the prices of the property every year, but he hasn't done this for 2 years, maybe he forgets. Can he still claim an overdue amount later?”
No valid appeal to non-compete clause in franchising
On 28 February 2017, ECLI:NL:RBGEL:2017:1469, the provisional relief judge of the District Court of Gelderland ruled on whether a franchisee could be bound by a non-compete clause.
Structurally unsound revenue forecasts from the franchisor
On 15 March 2017, the District Court of Limburg ruled in eight similar judgments (including ECLI:NL:RBLIM:2017:2344) on the franchise agreements of various franchisees of the P3 franchise formula.