Judge: Protect franchisee against supermarket organization (Coop) as lessor
Does the franchisee need legal protection from supermarket franchisor Coop? The District Court of Rotterdam ruled on 9 February 2018, ECLI:NL:RBROT:2018:1151, that this is the case.
In the event of (premature) termination of the franchise agreement, the rental agreement does not also end automatically. Franchisors often stipulate in their contracts with the franchisee that the duration of the franchise agreement and the lease agreement run synchronously. That provision is in principle invalid.
If a supermarket entrepreneur rents the business space from the franchisor, then the entrepreneur is very dependent on the franchisor. Fortunately, the law has rent protection rules. For example, if the franchise agreement ends, the rental agreement does not also end.
Together with a franchisee, Coop had asked the court for permission to link the duration of the franchise agreement to the duration of the rental agreement. The court makes it clear that the franchisee does not have such a social position compared to Coop. The franchisee requires legal rent protection towards Coop.
It is not the first time that if the franchise agreement ends, the supermarket entrepreneur can operate another formula, despite still renting from the old supermarket organization.
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
Non-compete clause on the sale of a franchise business
How strict should a non-compete clause be when selling a franchise business to the franchisor? This question was raised in a dispute in which the District Court of Gelderland op
Franchisor fails by invoking a non-compete clause
Although a non-compete clause is validly formulated in a franchise agreement, a situation may arise that is so diffuse that the franchisor cannot invoke it.
Acquisitions and Franchise Interest
It will not have escaped anyone's attention, certainly in the last year it can only be concluded that the Dutch economy is once again on the rise.
Which court for a rental and franchise agreement?
Which court is competent to rule on a related rental and franchise agreement?
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+.
Franchisor convicted under the Acquisition Fraud Act
For the first time, a court has ruled, with reference to the Acquisition Fraud Act, that if a franchisee claims that the franchisor has presented an unsatisfactory prognosis