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
Article De Nationale Franchisegids: “Prejudicial questions about ‘sharing the pain’ – rent reduction due to corona” – mr. K. Bastiaans – dated May 11, 2021
In the past period, the case law has not been ...
The franchise industry according to Rabobank and Ludwig & Van Dam
The franchise industry according to Rabobank and Ludwig & Van ...
Supermarket Newsletter – No. 30 –
Shortcoming in expansion PLUS supermarket Blocking supermarket unloading area by ...
Franchisor liable for franchisee error
On 17 March 2021, the Midden-Nederland District Court ruled, ECLI:NL:RBMNE:2021:1351, ...
Extensive application of the prohibition of competition from the Franchise Act
In a judgment of the Noord-Holland court of 11 February ...
Franchisee competition ban: error in forecasting and transfer of know-how?
In preliminary relief proceedings, a franchisee demands that the franchisor ...