Termination of the franchise agreement does not automatically lead to termination of the sublease agreement
Court of Dordrecht
Franchisor terminated the franchise agreement with the franchisee. The franchise agreement stipulated that termination of the franchise agreement would also terminate the sublease agreement. However, the subdistrict court does not follow this reasoning at all. The termination of the rental agreement does not comply with the legal provisions and is therefore not legally valid. The stipulations in the lease on which the franchisor relies are deviating stipulations that have not been approved in advance by the subdistrict court judge and are therefore null and void.
In its recently issued judgment, the subdistrict court also considers that, although the franchise agreement and the rental agreement state that agreements are inextricably linked and that the end of one agreement also ends the other, there is no question of a so-called mixed agreement, and that the legal rent regime would also have been set aside. After all, both agreements can also exist independently of each other.
A proper link in advance with approval by the subdistrict court judge might have led to a different judgment. It is also remarkable that the Supreme Court has followed the doctrine of mixed agreements in recent years. Lower case law, however, apparently assumes the mandatory tenancy regime in which the franchise agreement exists separately from the sublease agreement, so that the franchisee enjoys full rent protection.
Mr Th.R. Ludwig – Franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice Would you like to respond? Mail to ludwig@ludwigvandam.nl
Other messages
Supreme Court confirms permit sale of franchisee outside exclusive district
Franchisee acquires and sells outside its territory, in territories not yet issued to other franchisees.
The further determination of the rental price of business premises at the request of the lessor/franchisor or the lessee/franchisee
Does the (sub)tenant/franchisee still pay a competitive rent for the leased business space?
Partial indebtedness of entrance fees due to lack of turnover and non-delivery of contractual performance by the franchisor
The franchisee rightly invokes unforeseen circumstances due to the lack of turnover and successfully claims moderation of the entrance fee due.
Termination of the franchise agreement does not automatically lead to termination of the sublease agreement
Franchisor terminated the franchise agreement with the franchisee. The franchise agreement stipulated that termination of the franchise agreement would also terminate the sublease agreement
Despite the franchisee’s counterclaim, the franchisor justified dissolution of the franchise contract
The Rotterdam court recently ruled that payment arrears of more than € 80,000 is sufficient for the franchisor to dissolve the franchise agreement.
Actually using a building, but without a lease
In franchising, it often happens that the business premises from which the franchisee operates his business