No non-compete violation by franchisee – February 9, 2016 – mr. AW Dolphin
Has a former franchisee violated the non-compete clause by offering services outside an agreed territory? The court thinks not. The non-competition prohibition only applies to own brokerage activities and not to the presentation of brokerage activities of third parties. See the judgment of the interim relief judge of the Central Netherlands District Court of 13 January 2016, ECLI:NL:RBMNE:2016:191 (123Wonen/ex-franchisee).
Franchisor and franchisee had concluded a franchise agreement with regard to a formula for intermediation in, among other things, renting and renting out accommodation. The parties had agreed that after the termination of the franchise agreement, the franchisee was not allowed to carry out brokerage activities with regard to the rental of homes (with the exception of 20 permitted properties) outside a certain geographical area. However, the former franchisee’s website lists more than the 20 excluded objects from outside the agreed upon area. Is there now a violation of the post non-compete clause?
The preliminary relief judge of the district court rules that the post non-competition prohibition only concerns brokerage activities and that the parties have not made any agreements about offering homes in which other estate agents mediate. Now that this has not been sufficiently contested by the former franchisor and further evidence in the context of summary proceedings is limited.
This judgment shows once again that the formulation of a non-competition clause must be done with great care.
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
How do I keep my location? – June 6, 2019 – mr. K. Bastian
Location is of great importance to franchisors and franchisees, especially in the retail sector.
Supermarket letter – 25
Supermarket Newsletter No. 25
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.