Recommendations by the franchisor in general terms are permitted – dated March 6, 2020 – mr. AW Dolphin
The Amsterdam Court of Appeal ruled on January 21, 2020,
ECLI:NL:GHAMS:2020:116, which is the information provided by a franchisor
about increasing turnover, cost savings, more clientele and customer loyalty
is too general in nature to invoke acquisition fraud or error
make it succeed. There is no question of deception by the franchisor and the
The (prospective) franchisee cannot be blamed by the franchisor for this
wrong leg.
In that context, it has also been ruled that a potential franchisee is allowed
be expected to know that the franchise formula is focused on business
as revenue increase and cost savings, but that concrete results of
depend on many circumstances, such as, for example, the manner
on which the franchisee conducts his business.
It is true that, if the franchisor has concrete information about
turnover forecasts and the like, he acts unlawfully if he does so
information is incorrect and he knows this, or his carelessness leads to
which led to errors. The court refers to the judgment
HR 24-02-2017, ECLI:NL:HR:2017:311 regarding Street One. In this case it is
however, such concrete information is not provided by the franchisor
provided. That is also stated in the agreement in so many words, it said
court of justice.
The boundary between praise in general terms and
on the other hand, culpable deception and misrepresentation,
remains a tricky issue.
mr. AW Dolphijn – franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Want
you respond?
Go to dolphijn@ludwigvandam.nl
![245franchisestatistiek.jpeg](https://www.ludwigvandam.nl/wp-content/uploads/2020/12/245franchisestatistiek.jpeg.jpg)
Other messages
Recent jurisprudence
Discussion deserves a recent ruling by the Court in preliminary relief proceedings.
Franchise Councils and Franchisee Associations: A Balancing
Nowadays it is good practice to consult between the franchisor and the franchisees
Proven formula for success – a sequel
Unfortunately, in recent months it has become increasingly common for franchisees to run into problems as a result of
Extension under “the then applicable conditions”
Many franchise agreements contain a clause regarding renewal of the franchise agreement
Franchise agreement or employment contract?
“Franchise Agreement” is not a legal term. The law sees a franchise agreement as an ordinary agreement.
The bankruptcy of a franchisor: end of the franchisee’s right of action?
Although fortunately sporadic in itself, it does happen that franchise organizations go bankrupt.