The franchise formula as the destination of the rented property
The Amsterdam Court of Appeal recently ruled on the question of whether a rental agreement can be dissolved and the rented property should be vacated, because the renting franchisee acted contrary to the destination clause in the rental agreement. That clause prescribed use of the leased property according to the franchise formula. See: http://uitspraken.rechtspraak.nl/inziendocument?id=ECLI:NL:GHAMS:2013:4913&keyword=franchise
The tenant, who is also the franchisee, defended himself against the claims, arguing, among other things, that the formula in practice deviated strongly from what had been agreed in writing at the time.
The Court of Appeal has established that a franchise formula is usually subject to development, and that this is all the more true in this case since the lessee is the formula’s first and only franchisee. The franchise agreement also stipulates that the franchisee is obliged to cooperate in the further development of the formula. The Court of Appeal ruled that it can be argued against the franchisee that he violated the destination clause in the rental agreement because he did not meet the essential characteristics of the formula.
It follows from this ruling that franchisees should be vigilant when interpreting the franchise formula, especially if the formula is relatively new and under development. Franchisors would do well to include a clause in the rental agreement that the tenant is obliged to use the formula, as well as that the tenant is obliged to cooperate in the further development of the formula.
Mr AW Dolphin – Franchise attorney
Ludwig & Van Dam Franchise attorneys,franchise legal advice. Do you want to respond? Mail to dolphijn@ludwigvandam.nl
![](https://ludwigvandam.megaconcept.nl/wp-content/uploads/2020/12/232court-min-400x222.jpg)
Other messages
Article De Nationale Franchise Gids: “Non-compete clause: ‘the devil is in the details'” – mr. C. Damen – dated April 2, 2021
In a judgment of 20 January 2021, the Rotterdam court ...
Article Franchise+: “The importance of know-how in the context of a non-compete and non-solicitation clause” – mr. K. Bastiaans – dated March 10, 2021
In its judgment of 24 February 2010, the provisional relief ...
Article De Nationale Franchise Gids: “The Franchise Act: what should I do with it?” – mr. DL van Dam – dated March 9, 2021
It has of course not escaped the attention of most ...
Vacancy: Lawyer employee and a Lawyer trainee
Ludwig & Van Dam Advocaten is a law firm that ...
No non-compete violation by franchisee – mr. AW Dolphijn – dated February 4, 2021
On 20 January 2021, the District Court of Rotterdam, ECLI:NL:RBROT:2021:657, ...
(Partially) similar activities not in conflict with non-compete clause – mr. RCWL Albers – dated February 4, 2021
In recent proceedings, two (former) franchisees were sued by their ...