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
Supermarket letter – 26
Supermarket Newsletter No. 26
Link franchise agreement and rental agreement uncertain? – dated October 14, 2019 – mr K. Bastiaans
It is no exception within a franchise relationship that the parties agree that the franchise agreement and the rental agreement are inextricably linked.
Termination of franchise agreement in case of changes in leased retail space – September 27, 2019 – mr. AW Dolphin
Termination of a franchise agreement in light of a substantial change in the leased retail space.
Article De Nationale Franchisegids: “Distribution of (potential) customers prohibited?” – September 17, 2019 – mr. AW Dolphin
Within many franchise organizations, agreements are made about the recruitment of (potential) customers in a certain area.
District protection no protection against termination due to urgent own use – dated September 17, 2019 – mr. AW Dolphin
As a landlord, can the franchisor terminate the lease for urgent own use, in the sense of district protection, while this would be excluded on the basis of the franchise agreement.
Unreasonable compensation at the end of the franchise agreement – dated September 17, 2019 – mr. AW Dolphin
Some franchise agreements stipulate that the franchisee always owes the franchisor a minimum of a certain amount of costs upon termination of the franchise agreement.