The possibility of actively or not actively recruiting customers outside
Based on the relevant regulations, it is permitted to limit the franchisee’s active solicitation activities to its exclusive territory. In that area, the franchisee can then freely advertise and acquire customers in any other way. In that case, the franchisor should not impose any restrictions on the franchisee in actively acquiring customers within the exclusive territory. It is of course possible that certain advertisements end up outside the exclusive territory of the relevant franchisee, whether or not via the internet.
It follows from the above that when a customer, who is not located in the franchisee’s exclusive territory, turns to this franchisee, the franchisee is free to do business with this customer. This also applies, of course, if such customer contact is established via the internet or a catalogue. In that context, however, a franchisee may be prohibited from actively distributing e-mails outside its exclusive territory. This is what is known as active recruitment. In other words: if there is active sales, the possibilities of a franchisee can be limited. In summary, the above means that if a franchisor allocates an exclusive territory to its franchisee, the franchisee must have considerable freedom in acquiring customers in that territory; the so-called active sale. The franchisor can only impose restrictions if the sales activities take place in the area outside the exclusive territory of the relevant franchisee. Often this will also arise from the protection of other franchisees located in that adjacent area, each with its own exclusive area.
Ludwig & Van Dam franchise attorneys, franchise legal advice
![](https://ludwigvandam.megaconcept.nl/wp-content/uploads/2020/12/232court-min-400x222.jpg)
Other messages
Franchisee is not eligible for debt restructuring due to lack of good faith
Franchisee is not eligible for debt restructuring due to lack of good faith
Termination of the continuing performance contract leads to price maintenance
Termination of the continuing performance contract leads to price maintenance
Google AdWords: a hot item
Trademark law, trade name, franchise knowledge center, franchise expert, restyling, franchisees.
Where does the franchisor’s duty of care begin?
Where does the franchisor's duty of care begin?
Does the employment contract end when entering into a franchise agreement?
Does the employment contract end when entering into a franchise agreement?
Change in store franchisee’s entrance to be regarded as a defect?
Change in store franchisee's entrance to be regarded as a defect?