In a judgment of the Court of Appeal of ‘s-Hertogenbosch of 11 July 2017, ECLI:NL:GHSHE:2017:3153, it was discussed that franchisees accused the franchisor’s accountant of being liable for an unsatisfactory forecast.

The franchisor’s accountant had drawn up an investment budget on behalf of the franchisees, which provided a forecast of the expected financial results of operating a franchise establishment under the franchisor’s formula. The allegations related to the presence of a conflicting interest of the accountant, but also to some omissions in the prognosis. These omissions related, among other things, to the omission of negative effects, while positive effects were included. 

The court has appointed an expert. The expert has come to the conclusion that the prognosis is understandable and has been drawn up in accordance with the usual working method. The expert also pointed out that differences between the forecast and the actual figures are limited. Furthermore, the expert pointed out some shortcomings of the fact that the conflict of interest has not been recorded and some shortcomings are not such that the prognosis would be unreliable. 

In line with this, the Court of Appeal ruled that the accountant acted as may be expected from a reasonable acting and reasonably competent accountant.

The question of whether the prognosis is sound is assessed by the Court of Appeal on the basis of the standard for professional liability. Liability of a franchisor for a faulty forecast could also be assessed by whether the franchisor acted as would be expected of a reasonable and reasonably competent franchisor in recruiting franchisees. 

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

Circumvent post non-compete clause in franchising

On 3 April 2018, the Court of Appeal of Arnhem-Leeuwarden, ECLI:NL:GHARL:2018:3128, overturned an interim injunction of the District Court of Gelderland on competitive activities.

Column Franchise+ – “Prohibition of sales via internet platforms in franchise agreement exempt from cartel prohibition”

At the end of last year, Thuisbezorgd.nl incurred the wrath of many meal delivery companies by announcing another rate increase. The standard rate of Thuisbezorgd.nl thus reached a

By Remy Albers|09-04-2018|Categories: Competition, Statements & current affairs|Tags: |

Column Franchise+ – Franchisor acts unlawfully by providing a forecast through a third party

Disputes about forecasts between franchisor and franchisee remain a hot topic in franchising. After the Street-One judgment, it seems that franchisors feel safe

Column Franchise+ – Outsourcing forecasting to an administrative office does not benefit the franchisor

Disputes about forecasts between franchisor and franchisee remain a hot topic in franchising. After the Street-One judgment, it seems that franchisors feel safe

By Maaike Munnik|04-04-2018|Categories: Forecasting issues, Franchise Agreements, Statements & current affairs|Tags: , |

Outsourcing prognosis to an administrative office does not benefit the franchisor

Disputes about forecasts between franchisor and franchisee remain a hot topic in franchising.

Contribution Mr. AW Dolphijn in Contracting magazine 2018, no. 1: “The unilateral amendment clause in the franchise agreement.”

A contribution by mr Dolphijn has been published in the magazine Contracteren entitled: “The unilateral amendment clause in the Franchise Agreement”.

Go to Top