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
Franchise Councils and Franchisee Associations: A Balancing
Nowadays it is good practice to consult between the franchisor and the franchisees
Proven formula for success – a sequel
Unfortunately, in recent months it has become increasingly common for franchisees to run into problems as a result of
Extension under “the then applicable conditions”
Many franchise agreements contain a clause regarding renewal of the franchise agreement
Franchise agreement or employment contract?
“Franchise Agreement” is not a legal term. The law sees a franchise agreement as an ordinary agreement.
The bankruptcy of a franchisor: end of the franchisee’s right of action?
Although fortunately sporadic in itself, it does happen that franchise organizations go bankrupt.
Statutory commercial interest in the franchise relationship
In daily practice, payment arrears often give rise to legal disputes.