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
Judge: Protect franchisee against supermarket organization (Coop) as lessor
Does the franchisee need legal protection from supermarket franchisor Coop? The District Court of Rotterdam ruled on 9 February 2018, ECLI:NL:RBROT:2018:1151, that this is the case.
Acquisition fraud vs. error in franchise forecasting
Who has to prove that the franchisor's forecast is unsound? In principle, this is the franchisee. If the franchisee invokes the Acquisition Fraud Act, it may be that
Obligation to sell back at the end of the franchise agreement
Franchise agreements sometimes provide that the franchisee is required to sell back purchased assets at the end of the franchise agreement.
Supermarket letter – 20
Uncertain legal position of Emté franchisees
Position of franchisees in franchisor restructuring
Franchisees must be adequately and generously informed in advance by the franchisor about the content and consequences of (further) agreements...
Interview Franchise+ – mrs. J. Sterk and AW Dolphijn – “Reversal of burden of proof in forecasts approved by court” – February 2018
The new Acquisition Fraud Act indeed appears to be relevant for the franchise industry, according to this article from Franchise+. Alex Dolphijn of Ludwig & Van Dam assists a franchisee in a