Timely addressing parties in case of problems
What to do if you notice irregularities in your franchise relationship? It’s always a consideration. The forecasts provided by your franchisor prior to signing the franchise agreement cannot be met, and you will experience problems as a result. However, you also value a good relationship with your franchisor. This often also applies to any other trading relationships.
The advice is not to wait. Discuss problems, but also report problems in writing. If there is no solution, don’t wait. If you keep waiting to look for solutions to the problems that have arisen with your franchisor, or if you keep waiting to see whether a solution is actually found or offered, you run undesirable risks.
Not only does the risk exist that your problems will only get worse over time, but you also run the risk of forfeiting rights. If your problems have arisen due to the negligence of another person, then that other person should be informed and given the opportunity to improve, the legal term for this is a ‘default notice’. To demonstrate that this option is indeed offered, it is advisable to record this in writing. If a solution has not been realized or an agreement has not been fulfilled within a set reasonable period, it may be possible to enforce this in court. However, you cannot wait too long for this. There is then a risk that your claim will become time-barred, as a result of which any possibility of obtaining your right through the courts will be forfeited.
Of course you want to keep the relationships good, but that should also be possible without losing your rights, if only because you have always waited. In a good business relationship, written records can work very well. Every franchise relationship benefits from clarity, so that the views of the parties can be clearly assessed in the event of an unexpected assessment of a conflict by the court.
Ludwig & Van Dam franchise attorneys, franchise legal advice
Other messages
Ludwig & Van Dam attorneys summon Sandd and PostNL on behalf of the Sandd franchisees – dated 9 January 2020 – mr. AW Dolphin
The Association of Franchisees of Sandd (VFS) has today summoned Sandd and PostNL before the court in Arnhem. The VFS believes that Sandd and PostNL are letting the franchisees down hard.
Article The National Franchise Guide: “Why joint and several liability, for example, next to private?” – dated 7 January 2020 – mr. AW Dolphin
Franchisees are often asked to co-sign the franchise agreement in addition to their franchise, for example. Sometimes franchisees refuse to do so and the franchise agreement is not signed.
Ludwig & Van Dam Advocaten assists Sandd franchisees: Franchisees Sandd challenge postal monopoly in court – dated 12 November 2019 – mr. AW Dolphin
The Association of Franchisees of Sandd (VFS) is challenging the decision of State Secretary Mona Keijzer to approve the postal merger between PostNL and Sandd before the court in Rotterdam.
Franchisee trapped by non-compete clause? – dated October 21, 2019 – mr. AW Dolphin
The District Court of East Brabant has ruled that a franchisee was still bound by the non-competition clause in the event of premature termination of the franchise agreement.
Supermarket letter – 26
Supermarket Newsletter No. 26
Link franchise agreement and rental agreement uncertain? – dated October 14, 2019 – mr K. Bastiaans
It is no exception within a franchise relationship that the parties agree that the franchise agreement and the rental agreement are inextricably linked.