Interview Franchise+ – mrs. J. Sterk and AW Dolphijn – “Reversal of burden of proof in forecasts approved by court” – February 2018
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.
Other messages
Every forecasting issue is different
Every forecasting issue is different
Not providing market research to the franchisee remains without consequences for the franchisor
Not providing market research to the franchisee remains without consequences for the franchisor
Franchisor remains liable for incorrect prognosis
Franchisor remains liable for incorrect prognosis
Prohibited market/area division in franchise agreements
Franchisees sometimes have more opportunities to break through market/area divisions than they think.
Link rent and franchise depending on goodwill arrangement
Link rent and franchise depending on goodwill arrangement
Franchisee, don’t forfeit your rights
Complaining out loud does not seem appropriate in an intensive collaboration such as franchising, let alone a liability claim.