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
![](https://ludwigvandam.megaconcept.nl/wp-content/uploads/2020/12/232court-min-400x222.jpg)
Other messages
Subdistrict court approval of the link between franchise and rental agreement remains necessary
A frequently recurring subject of litigation in matters between franchisors and franchisees
The set-off defense and the termination of the franchise agreement for an indefinite period
On 29 September 2015, the Arnhem-Leeuwarden Court of Appeal ruled on whether the franchisor could terminate the franchise agreement for an indefinite period.
Dutch Franchise Code bad for the franchise industry
Dutch Franchise Code bad for the franchise industry
Bruna in serious collision with many franchisees
Bruna in serious collision with many franchisees
The concept of the Dutch Franchise Code is bad for supermarket franchisees
The Dutch Franchise Code concept bad for supermarket franchisees;
Supermarket letter – 11
The concept of the Dutch Franchise Code is bad for supermarket franchisees