Article De Nationale Franchise Gids – Bankrupt because the franchisor refused to sell the franchise company – dated January 28, 2020 – mr. AW Dolphin
Can a franchisor refuse to sell a franchise business to a prospective buyer, even if it is a last resort for the franchisee? Can the franchisor then even file for bankruptcy of the franchisee?
A franchisor recently filed for the bankruptcy of its own franchisee due to payment arrears. The franchisee has argued twice that it found a potential buyer, but that the franchisor blocked the sale of the franchise business by refusing its consent. After all, the franchisee was prohibited from selling the franchise company without the prior written approval of the franchisor. With the intended sale, the franchisee could have made up the payment arrears with the franchisor
Click here for the entire article.
mr. AW Dolphijn – franchise lawyer
Ludwig & Van Dam franchise attorneys, franchise legal advice. Do you want to respond?
Go to dolphijn@ludwigvandam.nl
Other messages
Is franchising always the right form of cooperation?
Franchising is in most cases a form of cooperation that involves all parties involved
Intellectual property: get it right
Franchisors and franchisees also have to deal with what is so nicely called intangible products of the mind.
The preliminary agreement
The European Code of Honor on Franchising has already been discussed in this series of articles.
Sale of the franchise organization, consequences for the franchisees?
Last week it was announced that the HEMA organization may be sold by Maxeda, the owner of the organization.
Indemnification II – Failed Forecasts
A special form of indemnification consists of exoneration clauses that attempt to indemnify the franchisor against incorrect forecasts.
Incorporation of the franchisee’s business into a private limited company
When the franchisor and franchisee conclude their franchise agreement, in most cases there are franchisees