Still deliver in case of payment arrears.
Central Netherlands Court
The Central Netherlands District Court recently ruled that even in the event of payment arrears of more than € 100,000, the franchisor could not unilaterally terminate the franchise agreement and had to deliver. The idea was that the payment arrears had existed for a long time and the franchisee had drawn the franchisor’s attention to this. Payment arrears were also tolerated for a long time and a single policy change on the part of the franchisor proved insufficient to make use of the contractually stipulated right of termination in the event of payment arrears. The court also considered that the franchisor could be expected to draw up a concrete plan for repayment of the payment arrears in consultation with the franchisee. If such consultation and such a plan are not forthcoming, a good defense can be made against the suspension of deliveries by appealing to reasonableness and fairness.
In times of crisis, the court thus puts the brakes on rash decisions to stop such deliveries. Franchisors are thus warned that the duty of care also extends to financial guidance and timely intervention if payment arrears arise.
Mr J. Sterk – Franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice Would you like to respond? Mail to info@ludwigvandam.nl
Other messages
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.
Article De Nationale Franchise Gids: “Information obligations of the intended franchisee under the Franchise Act” – dated August 7, 2020 – mr. AW Dolphin
Although the purpose of the Franchise Act is to protect franchisees against franchisors, a number of obligations have also been laid down for franchisees.
Legislative text of the Franchise Act – dated July 24, 2020 – mr. AW Dolphin
The legal text of the Franchise Act was published in the Staatsblad on 1 July 2020. The full legal text reads as follows:
Law Franchise – dated July 23, 2020 – mr. AW Dolphin
The Franchise Act will have a considerable impact on both franchisors and franchisees.
Contractual dissolution requirements not observed? No legal dissolution of the franchise agreement – dated July 23, 2020 – mr. C. Damen
Can a franchisor terminate the franchise agreement if it has failed to comply with its own contractual requirements?