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
Column Franchise+ – 50 percent more franchise lawsuits
The 2018 Legal Franchise Statistics published by Ludwig & Van Dam Advocaten shows that there has been a 50% increase in the number of judgments in court cases rendered in 2017 compared to
A closer look at the intention to introduce franchising legislation
On May 23rd, State Secretary Mona Keijzer informed the House of Representatives about the imminent franchise legislation. The National Franchise Guide previously published this article.
Consumer Protection Applies to Franchisee
The consumer enjoys broad protection on the basis of the Civil Code.
Update Franchise Law
On 23 May 2018, the government indicated that it would prepare a legal regulation that creates a framework for four sub-areas of cooperation between franchisors and franchisees that are crucial
On the edge of a franchisee’s exclusive territory
The Court of Appeal of Arnhem-Leeuwarden ruled on 15 May 2018, ECLI:NL:GHARL:2018:4395, on the question whether a franchisor has a branch just over the edge of the exclusively granted protection area.
Can a franchisee cohabit with a competing entrepreneur?
Can a franchisee violate a non-compete clause by cohabiting with someone who runs a competing business? On January 12, 2018, the District Court of Central Netherlands ruled