Not a valid non-compete clause for franchisee
On 18 November 2016, the preliminary relief judge of the Central Netherlands District Court, ECLI:NL:RBMNE:2016:7754, rendered a judgment in the matter concerning whether the franchisee was bound by the non-compete obligation from the franchise agreement.
After the franchise agreement was concluded, the franchisee invoked the nullification of the franchise agreement, because she stated that she had erred at the time the franchise agreement was concluded. Based on statements from the franchisor, the franchisee assumed that the formula in question was an exclusive concept. This mainly concerned the alleged exclusivity of the slimming equipment used within the formula.
However, after the start of the collaboration, it turned out that another franchise formula uses the same slimming equipment. The judge also ruled that the franchise formula actually consisted of no more than the purchase of the slimming equipment and a WhatsApp group with the other franchisees. According to the franchisor, the added value of the formula lies in the transfer of knowledge, for example by means of a handbook and basic training. The preliminary relief judge believes that it seems plausible for the time being that the nullification of the franchise agreement will be upheld.
The franchisor demanded payment of sums of money for violating the non-compete clause. However, if the franchise agreement remains null and void, the non-compete clause is deemed never to have been concluded. The franchisor’s claim is therefore rejected.
mr. AW Dolphijn – franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Do you want to respond? Go to dolphijn@ludwigvandam.nl .
![232court-min](https://www.ludwigvandam.nl/wp-content/uploads/2020/12/232court-min.jpg)
Other messages
The hardness of a non-competition clause in bankruptcy
Most franchise agreements contain post-contract non-competition clauses
E-mail traffic between franchisor and franchisee
If a discussion gets out of hand and a real conflict arises, can communication continue via email?
Turnover-related rent for franchisees
Increasingly, franchisor/landlord and franchisee/lessee are pursuing opportunity for a variety of reasons
Control and guidance
Situations occur with some regularity in practice in which a franchisee
Rental problems: a follow-up
Earlier in this section attention was paid to the possibilities for tenants of retail space in particular
Restyling, shopfitting
Within franchise organizations it often happens that the entire shop interior needs to be replaced.