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 Legal Franchise Statistics 2018
Ludwig & Van Dam attorneys are the only periodic publishers of franchise statistics on franchise disputes based on all published court decisions.
Ludwig & Van Dam in De Nationale Franchisegids 2018
The basis of a franchise relationship is the franchise agreement. This contains a number of conditions that the parties must comply with.
Ludwig & Van Dam Advocaten exhibitor (no. 2) at the franchise fair Onderneem ‘t! dated 19 & 20 April 2018
For more information click on the link below:
Duty of care franchisor in the pre-contractual phase
The District Court of Limburg ruled on 6 April 2017, ECLI:NL:RBLIM:2016:2843, that the franchisor has a duty of care towards the prospective franchisee in the pre-contractual phase.
Franchisee avoids joint and several liability in private
In a judgment of 28 March 2018, ECLI:NL:RBROT:2018:2913, the District Court of Rotterdam ruled on the meaning of the clause in the franchise agreement stipulating that