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
Attorneys Ludwig & Van Dam look back on transition process C1000
Attorneys Ludwig & Van Dam look back on transition process C1000
Court of Appeal upholds misrepresentation and wrongful conduct in the event of an unsatisfactory prognosis
The franchisee claimed annulment of the franchise agreement on the grounds of error, because the franchisor allegedly presented an unsatisfactory prognosis.
Directors’ Liability Concerning Franchising: Deception or Collaboration Plan
Directors' Liability Concerning Franchising: Deception or Collaboration Plan
Jumbo completes the C1000 conversion operation in more than 1100 days
Jumbo completes the C1000 conversion operation in more than 1100 days
Secretly another franchisee? Explanation contra proferentem
On March 4, 2015, the Court of Appeal of The Hague issued a judgment on whether the franchisee should have been changed.
A property owner and Plus have agreed that Plus will rent a supermarket location, but may only use it as a supermarket, stating ‘Plus Market’ in parentheses.
A property owner and Plus have agreed that Plus will rent a supermarket location, but may only use it as a supermarket, stating 'Plus Market' in parentheses.