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
Article Franchise+ – “Immediate information obligations of franchisors upon operation of the Franchise Act” – mr. AW Dolphijn – dated June 25, 2020
As soon as the Franchise Act enters into force, this will have an immediate effect on franchise agreements that already exist. The question is whether the information flows are set up optimally from a legal point of view.
Senate will adopt Franchise Act – dated 24 June 2020 – mr. AW Dolphin
The House of Representatives had unanimously adopted the proposal to introduce the Franchise Act on 16 June 2020
Franchise Act passed by the House of Representatives – dated 16 June 2020 – mr. AW Dolphin
The Franchise Act was adopted by the House of Representatives on 16 June 2020.
Sandd franchisees find satisfaction in nullifying Sandd and PostNL merger – dated 12 June 2020
The franchisees of mail delivery company Sandd went to court in November, assisted by Ludwig & Van Dam Advocaten. Court of Rotterdam rules on takeover by PostNL.
Plenary debate dated June 9, 2020 in the Lower House of the Franchise Act – dated June 10, 2020 – mr. AW Dolphin
On 9 June 2020, the legislative proposal for the Franchise Act was discussed in plenary in the House of Representatives. An amendment and a motion have been tabled.
Franchising is “a bottleneck in tackling healthcare fraud” – dated 10 June 2020 – mr. AW Dolphin
According to the various supervisory authorities in the healthcare sector, franchise constructions can be seen as a non-transparent business construction in which the supervision of professional and