No Dutch Franchise Code, but legislation on franchising
The Secretary of State has stated that the Dutch Franchise Code (“NFC”) is not enshrined in law. However, there will be legislation on franchising.
On 8 February 2018, the standing committee for Economic Affairs and Climate held consultations with Ms Keijzer, State Secretary for Economic Affairs and Climate, about including the announced regulations on franchising. The coalition agreement also contains a phrase about this, namely that regulations must be introduced and that the “pre-competitive phase” must be included in legislation.
The Secretary of State indicates that he is working on the regulations on franchising, but it has emerged that there is no agreement between franchisors and franchisees about the NFC. The State Secretary indicates that he has accepted this as an established fact. This seems to put an end to the question of whether the NFC will be legally enshrined, as was previously submitted to the public for consultation.
The State Secretary announces that she will submit an elaboration of the regulations to the House of Representatives in an order in council (“AmvB”). This order in council will contain rules for the “pre-competitive phase” in franchising. She hopes to do so before the end of the year.
mr. AW Dolphin – franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Do you want to respond? Go to dolphijn@ludwigvandam.nl .
Other messages
The benchmark for franchise forecasts – dated 29 May 2019 – mr. AW Dolphin
On 19 March 2019, the Den Bosch Court of Appeal, ECLI:NL:GHSHE:2019:1037, listed the case law of the Supreme Court on prognosis in franchising.
Franchise arbitration: too high a threshold? – mr. M. Munnik
When entering into an agreement, it is possible for the parties - contrary to the law - to designate a competent court. This also applies to the franchise agreement. Of this possibility
Franchise appeal for error due to incorrect forecasts and lack of support rejected – dated April 25, 2019 – mr. K. Bastian
The Court of Appeal of 's-Hertogenbosch ruled (ECLI:NL:GHSHE:2019:697) on the question whether the mere fact that forecasts did not materialize justifies the conclusion that the franchisee has been shortchanged...
Article De Nationale Franchise Gids: “Increasing protection against recruiting franchisees” – dated 2 April 2019 – mr. AW Dolphin
It is becoming increasingly apparent that recruited franchisees can be protected on the basis of the Acquisition Fraud Act.
The Franchise Association and Franchise Binding – Contracting 2019, No. 1
A contribution on common provisions in franchise agreements that require a franchisee to be a member of a franchisee's association.
Deception in recruiting a franchisee?
A ruling on whether the franchisor had made a misrepresentation when recruiting a franchisee.