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
The scope of an exclusive purchase clause in a franchise agreement
The scope of an exclusive purchase clause in a franchise agreement
Franchise agreement negotiations broken off
Franchise agreement negotiations broken off
New legal journal about franchise: Franchise & Law information source
The content of Franchise & Law is provided by a network of leading attorneys with specialist knowledge in the field of franchise.
Waiver of non-competition clause by franchisee
Waiver of non-competition clause by franchisee
End of main lease does not mean end of sublease with franchisee
On 7 July 2015, the Court of Appeal in Den Bosch overturned a judgment of the District Court of Limburg on the concurrence of a franchise agreement and a sublease agreement.
Chronicle Jurisprudence Franchise Law 2014
Chronicle Jurisprudence Franchise Law 2014