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
How independent is the franchisee actually still?
It is hardly visible that mergers of franchise organizations often take place via takeover
Franchisor liable for incorrect forecast to franchisee, tort
Once again, a judicial body has recently ruled on the prognostic problems that regularly occur in franchise relationships, in this case the Court of Appeal of 's-Hertogenbosch
Pushing the limits of freedom can cause conflict
Pushing the limits of freedom can cause conflict
Ludwig & Van Dam present at ALV Vereniging Albert Heijn Franchisees
Luwdig & Van Dam Advocaten will be present with a stand at the General Members Meeting of the Association of Albert Heijn Franchisees on March 12
Incorrect forecasts: franchisor must pay damages to franchisee
The court in Utrecht has recently rendered a judgment with regard to a prognosis issue.
The use of social media in the franchise relationship
Social media can no longer be ignored in everyday life.