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
Other messages
Article Franchise+ – “Immediate information obligations of franchisors upon operation of the Franchise Act” – mr. AW Dolphijn – dated June 25, 2020
As soon as the Franchise Act enters into force, this will have an immediate effect on franchise agreements that already exist. The question is whether the information flows are set up optimally from a legal point of view.
Senate will adopt Franchise Act – dated 24 June 2020 – mr. AW Dolphin
The House of Representatives had unanimously adopted the proposal to introduce the Franchise Act on 16 June 2020
Franchise Act passed by the House of Representatives – dated 16 June 2020 – mr. AW Dolphin
The Franchise Act was adopted by the House of Representatives on 16 June 2020.
Sandd franchisees find satisfaction in nullifying Sandd and PostNL merger – dated 12 June 2020
The franchisees of mail delivery company Sandd went to court in November, assisted by Ludwig & Van Dam Advocaten. Court of Rotterdam rules on takeover by PostNL.
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.
Franchising is “a bottleneck in tackling healthcare fraud” – dated 10 June 2020 – mr. AW Dolphin
According to the various supervisory authorities in the healthcare sector, franchise constructions can be seen as a non-transparent business construction in which the supervision of professional and