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 bank’s duty of care in franchise agreements
On 23 May 2017, the Court of Appeal in The Hague, EQLI:NL:GHDHA:2017:1368, had to rule on the question whether the bank should have warned a prospective franchisee in connection with the
Article in Entrance: “Standing up”
“Can I fire an employee with immediate effect if he steals something trivial, such as food that has passed its expiration date?”
Arbitration clause in franchise agreement sometimes inconvenient
On 20 July 2016, the District Court of Gelderland, ECLI:NL:RBGEL:2016:4868, ruled on the validity of an agreement in a franchise agreement, whereby disputes would be settled
Supermarket letter – 18
Can an entrepreneur be obliged to operate a different supermarket formula?
Article in Entrance: “New owner”
“The catering company where I work has been taken over. The new owner now says that I no longer have to work for him, but can he refuse me as an employee?”
Directors’ liability in the settlement of a franchise agreement
Privately, can the director of a franchisee legal entity be liable to the franchisor if the franchisee legal entity wrongfully fails to provide business to the franchisor?