Supermarkets COOP and PLUS merge
The intended merger will mean that the COOP supermarkets will be converted to the PLUS formula. In that case, the supermarket entrepreneurs of COOP will become members of the cooperative of PLUS.
The proposed merger is subject to various approvals, including the following:
- the Netherlands Authority for Consumers and Markets (ACM);
- the Council of Members of COOP;
- the General Assembly of PLUS.
It is by no means certain in advance that these required approvals will be obtained without further ado. PLUS and COOP seem to expect few problems here and indicate that they will have completed the transaction in early 2022.
For the individual entrepreneurs of COOP and PLUS, the proposed change will have a major impact on their operations.
- existing PLUS entrepreneurs may see a competitor appear under the same formula in their market area;
- existing COOP entrepreneurs will have to convert the store, with all the associated costs and divestments.
In the meantime, numerous supermarket formulas have been taken over and “swallowed up”. These include Edah, Super de Boer, C1000, Emté and more recently DEEN. In each of those processes there were supermarket entrepreneurs who successfully resisted the transformation. Ludwig & Van Dam successfully assisted supermarket entrepreneurs.
- See the successful resistance of an Emté entrepreneur who was forced to convert to COOP, but preferred to convert to PLUS: https://bit.ly/3jNrh8V
- See also the successful resistance of an Albert Heijn entrepreneur against the conversion of a DEEN to the Albert Heijn formula: https://bit.ly/38KaVHY
Transition processes in supermarket formulas are complicated processes that can turn out very differently per supermarket entrepreneur and per market area. The legal merits are complex and often subject to short deadlines and with far-reaching consequences. Expert legal assistance to supermarket entrepreneurs is an absolute must here.
Ludwig & Van Dam lawyers, franchise legal advice.
Do you want to respond? Then email to dolphijn@ludwigvandam.nl
Other messages
Transfer customer data to franchisor
In its judgment of 10 January 2017, ECLI:NL:GHAMS:2017:68 (OnlineAccountants.nl), the Amsterdam Court ruled, among other things, on the question of how customer data should be transferred.
Franchise Closing Sale – Who Gets the Sale Proceeds?
The judgment of the District Court of the Northern Netherlands dated 12 October 2016, ECLI:NL:RBNNE:2016:5061 (Administrator/Expert Group and Rabobank), focused on the question whether the franchisor, together with the bank,
Column Franchise+ – mr. Th.R. Ludwig: “Judge: franchisor’s duty of care comparable to that of a bank”
Various judgments in 2016 made it clear how high the standard of care for a franchisor towards its franchisees is.
Use of the internet and social media: court expands options for franchisees
In principle, the franchisee may not be prohibited from having its own website in order to also or even exclusively sell its products or services via the Internet.
Article in Entrance: “Plan damage”
“Because the municipality undertakes and renovates all sorts of things in the vicinity of my business, I have a disadvantage and I suffer damage. Can I tell those stories?"
Article in Entrance: “Rules of Fragrance”
“I am bothered by the smell that the adjacent catering business produces. Can I do something about this?"