Interview Franchise+ – mrs. J. Sterk and AW Dolphijn – “Reversal burden of proof in forecasts honored by court”
The new Acquisition Fraud Act indeed appears to be relevant for the franchise industry, according to this article from Franchise+. Alex Dolphijn of Ludwig & Van Dam represents a franchisee in legal proceedings in which the franchisor has been convicted for the first time under the Acquisition Fraud Act. The court states that the franchisor must be able to demonstrate afterwards that the prognosis is correct. The position of franchisees has been greatly strengthened by this ruling. To be able to prove that a franchisor has its affairs in order, the franchisor must come from a good family, explain franchise attorneys Jeroen Sterk and Alex Dolphijn of Ludwig & Van Dam.
![232court-min](https://www.ludwigvandam.nl/wp-content/uploads/2020/12/232court-min.jpg)
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Penalty obligation for the franchisor for failure to comply with the franchise agreement
Penalty obligation for the franchisor for failure to comply with the franchise agreement
Need thorough research for a sound prognosis?
Is a thorough investigation by the franchisor always necessary to arrive at a sound prognosis?
Infringement of franchisee’s exclusivity rights: franchisor liable – October 18, 2016 – mr. DL van Dam
Infringement of franchisee's exclusivity rights: franchisor liable
Infringement of franchisee’s exclusivity rights: franchisor liable
Franchise agreements often contain exclusivity provisions that give franchisees exclusive rights
Advantage in the event of an illegal supply stop
Advantage in the event of an illegal supply stop
No contractual penalty for non-compete violation
No contractual penalty for non-compete violation