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
Other messages
Supermarket letter – 8
Incorrect prognosis from Albert Heijn to ex-C1000 franchisee
Urgent interest in summary proceedings
In the event of legal disputes, it is possible to request the court to take provisional measures by means of summary proceedings.
Suspension of the fee by the franchisee is not in itself an automatic ground for suspension of goods deliveries by the franchisor
The court in Assen recently ruled that a franchisor had wrongly suspended the deliveries of goods.
Codification or self-regulation in the franchising sector
Codification or self-regulation in the franchising sector
Tenancy law and franchise: approval of deviating terms in the tenancy agreement, despite material infringement and the lack of an equal social position between the tenant and landlord
Tenancy law and franchise: approval of deviating clauses in the lease.
Business transfer franchisee: franchisor properly facilitates franchisee in settlement
On November 12, 2014, the District Court of Rotterdam ruled in a case between the franchisor and the franchisee about the lawfulness of the termination of the franchise agreement.