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
Economic headwinds and duty of care: sometimes a difficult relationship
The trade press, as well as the more general media, are full of it: the retail trade is under heavy pressure
Gathering evidence for faulty prognosis
Gathering evidence for faulty prognosis
Exclusion nullification in unsigned franchise contract
On 17 February 2015, the Arnhem-Leeuwarden Court of Appeal assessed a court judgment.
Liability advisor for franchise agreements
When entering into a franchise agreement, the prospective franchisee sometimes engages an advisor to arrange financing, for example.
Financial contribution to the association of franchisees may not be stopped just like that
Financial contribution to the association of franchisees may not be stopped just like that
Seizure of ex-franchisee by franchisor not automatically permitted
Within a franchise relationship, disputes about money claims are unfortunately the order of the day.