Suspension post non-competition clause in Bruna franchise agreement
On 25 September 2015, the preliminary relief judge of the Utrecht District Court suspended the post-non-compete clause in a Bruna franchise agreement.
Bruna had indicated that it no longer wanted any connection with the location. At Bruna’s request, the franchisee had become the tenant of the retail property, instead of Bruna. Subsequently, Bruna had terminated the franchise agreement. The franchisee wished to continue the business under its own name. However, Bruna forbade this with reference to the post-non-compete clause.
The franchisee stated that Bruna had no interest in invoking the post non-compete clause. After all, she did not find the location interesting. The preliminary relief judge ruled in favor of the franchisee. In all fairness, Bruna has no legal interest to be respected in adhering to the post-non-competition clause.
Last year, on 16 July 2014 (ECLI:NL:RBDHA:2014:8667), Bruna was also rightly pointed out in this way that if and as long as it does not itself establish a Bruna store in the business premises, after termination of the franchise agreement, it cannot require the entrepreneur to comply with the non-competition prohibition.
If a franchisor wishes to withdraw from a certain location, this would seem to provide an opportunity for franchisees to set aside the post-non-compete clause. However, this will strongly depend on the specific franchise formula.
mr. AW Dolphijn – Franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Do you want to respond? Mail to dolphijn@ludwigvandam.nl
Other messages
Incorrect forecasts: no dissolution of the franchise agreement
On 6 January 2010, the provisional relief judge of the District Court in The Hague rendered a judgment
Can a franchisor profit from a franchisee’s default?
Can a franchisor profit from a franchisee's default?
A statutory franchise arrangement, far from our bed
A statutory franchise arrangement, far from our bed
Franchisor must take franchisee into account when determining transfer
A standard article in a franchise agreement is the so-called transfer arrangement.
Purchasing and purchase obligation right or wrong?
Purchasing and purchase obligation right or wrong?
The franchisee successfully appeals for error as a result of the forecast provided by the franchisor
The franchisee successfully appeals for error as a result of the forecast provided by the franchisor