Plenary debate dated June 9, 2020 in the Lower House of the Franchise Act – dated June 10, 2020 – mr. AW Dolphin
On 9 June 2020, the legislative proposal for the Franchise Act was discussed in plenary in the House of Representatives. An amendment and a motion have been tabled.
Amendment by members Palland and Aartsen on mandatory legal character only for franchisees established in the Netherlands. This amendment provides that the Franchise Act may not be deviated from to the detriment of franchisees operating in the Netherlands. Deviation, on the other hand, is permitted to the detriment of franchisees operating outside the Netherlands. Therefore, even if a choice of law for Dutch law has been made between the parties (where the franchisee operates outside the Netherlands), that choice does not preclude agreements that deviate from the Franchise Act being made in the franchise agreement to the detriment of that franchisee.
Motion by member Aartsen on a consultative body of franchisors and franchisees. This motion requests the government to bring representatives of franchisors and franchisees together in a periodic consultation body and to encourage them to come to model agreements and agreements for the implementation of the open standards from the Franchise Act.
The bill has received a generally positive reception and appears to meet with little resistance from members of the House of Representatives.
The (uncorrected) report of the plenary debate in the House of Representatives on the Bill to the Franchise Act can be read via the following link: https://www.tweedekamer.nl/kamerstuks/plenaire_verslagen/detail/10ef6de4-abce-44d3- 871b-a8537cd7e282#ide038e8f4
The Chairman has indicated that the bill, the amendment and the motion will be voted on next week.
mr. AW Dolphijn – franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Want
you respond? Go to
dolphijn@ludwigvandam.nl
Other messages
Judge anticipates Franchise Act: no mandatory formula change (without threshold value)
The District Court of Amsterdam ruled that a Blokker franchisee is not obliged to renovate the store in accordance with the latest formula principles, as instructed by Blokker.
Interview Mr. J. Sterk and mr. C. Rutten in Franchise+: “Call to the automotive sector: prepare yourself well for the new Franchise Act” dated October 2, 2020
The new Franchise Act has a broad effect, also in the automotive sector. But are people aware of it enough?
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