No valid appeal to non-compete clause in franchising
On 28 February 2017, ECLI:NL:RBGEL:2017:1469, the provisional relief judge of the District Court of Gelderland ruled on whether a franchisee could be bound by a non-compete clause.
The preliminary relief judge ruled that the franchisor could not invoke the non-compete clause in the franchise agreement, given the circumstances of the case. The issue was that the retail premises rented from the franchisor had to make way for housing. In anticipation of new business premises to be rented from the franchisor, the franchisee (temporarily) operated a business under his own name. It was uncertain whether the franchisor would still be able to offer (suitable) business premises to continue the collaboration. In view of this uncertain situation, the interest of the franchisee in keeping his new store open outweighs the interest of the franchisor in the opinion of the preliminary relief judge.
If during or after the end of a franchise agreement there is uncertainty about the continuation of the cooperation, this could possibly (also, or more specifically) be assessed as an unforeseen circumstance (ex Article 6:258 of the Dutch Civil Code). To put an end to the uncertain situation, both parties could also (together) energetically turn to the (provisional) judge to come to an adjustment and/or interpretation of the existing agreements. A conflict situation could then perhaps be avoided.
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Do you want to respond? Go to dolphijn@ludwigvandam.nl .
![247Mededinging](https://www.ludwigvandam.nl/wp-content/uploads/2020/12/247Mededinging-scaled.jpg)
Other messages
Article The National Franchise Guide – “Corona discount of 50% on the rent” – mr. AW Dolphijn – dated September 15, 2020
Disappointing turnover due to the corona crisis may mean that the rent is halved, even if the rent is partly turnover-related.
Article Franchise+ – “Franchisor uses “derivative formula” (without his knowledge)” – mr. AW Dolphijn – dated September 9, 2020
Many franchisors will not be aware of the fact that they use a "derived formula" as referred to in the Franchise Act.
Article Franchise+ – “Obligations and rights of the starting franchisee” – mr. AW Dolphijn – dd
What should you pay attention to as a starting franchisee, what are your obligations and what are your rights when concluding the franchise agreement?
Article Mr. C. Damen – Three conditions for the right to customer compensation for the agent upon termination of the agency agreement – dated August 26, 2020
In the agency relationship between an agent and a client (the principal), the parties record their cooperation agreements in an agency agreement. When the principal enters into the agency agreement
Article Mr. C. Damen – “When does the obligation to provide proof apply for the submission of the franchise agreement?” dated August 17, 2020
Does the obligation to produce information apply to showing a (franchise) agreement in proceedings if the parties to the proceedings do not have a legal relationship to the (franchise) agreement?
Article Mr. AW Dolphijn – “How do you value a franchise company with a discharge loan?” – dated August 14, 2020
A discharge loan is a proven means of franchisors to find long-term franchisees.