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
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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
Every forecasting issue is different
Every forecasting issue is different
Not providing market research to the franchisee remains without consequences for the franchisor
Not providing market research to the franchisee remains without consequences for the franchisor
Franchisor remains liable for incorrect prognosis
Franchisor remains liable for incorrect prognosis
Prohibited market/area division in franchise agreements
Franchisees sometimes have more opportunities to break through market/area divisions than they think.
Link rent and franchise depending on goodwill arrangement
Link rent and franchise depending on goodwill arrangement
Franchisee, don’t forfeit your rights
Complaining out loud does not seem appropriate in an intensive collaboration such as franchising, let alone a liability claim.