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
![](https://ludwigvandam.megaconcept.nl/wp-content/uploads/2020/12/232court-min-400x222.jpg)
Other messages
Core obligations in the franchise relationship III
This is the third and final article in a short series on some core obligations in the relationship between franchisor and franchisee and how to handle them.
Core obligations in the franchise relationship II
This is the second article in a short series on some core obligations in the relationship between franchisor and franchisee and how to handle them.
Core obligations in the franchise relationship
This is the first article in a short series on some core obligations in the relationship between franchisor and franchisee and how to deal with them.
Franchise Law
Franchise Law
Reducing the risk of fictitious employment
Recently, the new Minister of Social Affairs, De Geus, made the choice that he wants to put an end once and for all to the discussion whether there is self-employment or a
Bound by non-compete clause after expiration of the
The vast majority of franchise agreements contain a so-called post-contractual non-compete clause (hereinafter referred to as “non-competition clause” for brevity).