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
Is it allowed to suspend payments?
Suspension is the case when a debtor (temporarily) postpones the fulfillment of its obligations
Timely addressing parties in case of problems
What to do if you notice irregularities in your franchise relationship? It's always a consideration.
Possible pitfalls of a starting franchisee
Starting a business on the basis of "franchising" is in.
Franchise council: necessity or wisdom?
When developing a franchise organization, the usefulness and necessity of a franchise council is invariably discussed.
Pre-agreement, letter of intent
A so-called pre-agreement is occasionally concluded before entering into a franchise agreement.
What to look for when selling the franchisee’s business? Common interests and practical tips
If the franchisee wishes to sell his company, a number of things should be taken into account.