Rental price change
Following on from earlier published articles of my hand, I will once again deal with a tenancy law issue below. The franchise agreement concluded between the franchisor and franchisee is often closely linked to a rental agreement, since the franchisor, as lessor, has often concluded a rental agreement with the franchisee as lessee. The possibility and the way in which a rent change can be realized will be discussed in more detail below. This change can relate to both a rent reduction and a rent increase.
Article 7:303 of the Dutch Civil Code shows that both the franchisee and the franchisor can claim the court to further determine the rent if it does not correspond to that of comparable commercial space locally. This rental price determination is possible if the agreement applies for a definite period of time, after the agreed term has expired. In all other cases, rents can be fixed every time when at least five years have passed since the day on which the last rent set by the parties came into effect or on which the last rent set by the court was demanded.
It is relevant that the rent determination is accompanied by advice on the further rent, since otherwise the claim for rent determination would be inadmissible. The aforementioned advice must be drawn up by an expert in the field, such as a real estate agent, a member of the commercial rent advisory committee or an industry representative. When drawing up this advice, the relevant expert will have to take into account the average of the rents of comparable commercial premises on site, which have occurred in a period of five years prior to the day on which the claim was filed.
However, the necessary costs are associated with drawing up the advice, so that having such advice drawn up should not be taken lightly. To avoid such costs, it is therefore advisable to make agreements about the further rental price in good consultation at an earlier stage.
Ludwig & Van Dam franchise attorneys, franchise legal advice
![](https://ludwigvandam.megaconcept.nl/wp-content/uploads/2020/12/232court-min-400x222.jpg)
Other messages
Consultation: forms and possibilities
In practice, consultation between the franchisor and the franchisee often takes place through a franchise council.
New rental law
On August 1, 2003, the new rental legislation came into effect.
Clarity regarding financial obligations of franchisees
Franchisees generally have various long-term financial obligations towards the franchisor.
The possibilities regarding claiming a rent reduction then
Following on from earlier published articles of my hand, I will once again deal with a tenancy law issue below.
Catering agreements
The Netherlands Competition Authority (NMa) recently made a decision regarding the beer supply agreements submitted by Heineken for exemption.
European Code of Honor on Franchising
Article 3 of the European Code of Honor on Franchising deals with this in quite some detail