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
Other messages
Article The National Franchise Guide – “Corona discount of 50% on the rent” – mr. AW Dolphijn – dated September 15, 2020
Disappointing turnover due to the corona crisis may mean that the rent is halved, even if the rent is partly turnover-related.
Article Franchise+ – “Franchisor uses “derivative formula” (without his knowledge)” – mr. AW Dolphijn – dated September 9, 2020
Many franchisors will not be aware of the fact that they use a "derived formula" as referred to in the Franchise Act.
Article Franchise+ – “Obligations and rights of the starting franchisee” – mr. AW Dolphijn – dd
What should you pay attention to as a starting franchisee, what are your obligations and what are your rights when concluding the franchise agreement?
Article Mr. C. Damen – Three conditions for the right to customer compensation for the agent upon termination of the agency agreement – dated August 26, 2020
In the agency relationship between an agent and a client (the principal), the parties record their cooperation agreements in an agency agreement. When the principal enters into the agency agreement
Article Mr. C. Damen – “When does the obligation to provide proof apply for the submission of the franchise agreement?” dated August 17, 2020
Does the obligation to produce information apply to showing a (franchise) agreement in proceedings if the parties to the proceedings do not have a legal relationship to the (franchise) agreement?
Article Mr. AW Dolphijn – “How do you value a franchise company with a discharge loan?” – dated August 14, 2020
A discharge loan is a proven means of franchisors to find long-term franchisees.