Article Franchise+: “With our franchise formula you will earn mountains of gold.” dated 10 July 2019 – mr. AW Dolphin
For example, the Amsterdam District Court ruled that a franchisor merely praised the franchise formula in general terms by stating that a certain average turnover is achieved by the franchisees. The fact that this average turnover is not achieved by a particular franchisee does not mean that the franchisor should not have made the announcement. Also, in another case, it was held that there were only general promotions with the statement that the franchise formula was “the best price level!” and is able “to achieve this best price level because you benefit from international purchasing advantage because you buy from the source.”
Promotions are not always permissible. After all, advertising can go further than an endorsement and may contain information, such as omissions, that is misleading are. It will not always be obvious when there are generalized praise and the provision or withholding of inadmissible information. information on the acquisition of franchisees by franchisors. The legislator has provided more clarity about the impermissible with the introduction of the Acquisition Fraud Act. Under acquisition fraud be deceptive commercial practices involving the use of certain sales techniques aimed at gaining trust and arousing expectations in order to induce the other to enter into an agreement, whereby the consideration is not or hardly properly provided. The law Acquisition fraud explicitly refers to misleading statements such as ten regarding “statistical data”. It is also worth considering in this context historical data or forecasts. Of commendation in general terms will then not soon. With franchising in particular, the franchise formula will be promoted by the franchisor with historical data or forecasts. The the question then is whether that commendation takes place in “general terms”. The distinction between permissible promotions and misleading information remains a gray area, despite the relevant legislation. Each individual case will always have to be judged on its own.
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
Infringement of non-competition clause, where is the limit?
In this matter, a former freelancer of massage parlor Doctor Feelgood started his own massage parlor under the name Feelgood-store.
Research into numbers of franchise procedures
We recently published a brief survey of franchise jurisprudence over the past six years on the website.
Violation of duty of care affects exoneration
In a dispute about an appeal to an exoneration clause in the franchise agreement by the franchisor, it was considered that the nature of the franchise agreement should be taken into account
Supermarket letter – 5
Acquisition of a supermarket location by terminating the lease at the expense of the sitting tenant is allowed by the Supreme Court.
Acquisition of a supermarket location by terminating the lease at the expense of the sitting tenant is allowed by the Supreme Court
On 25 April 2014, the Supreme Court confirmed for the second time that the waiting period of three years for termination of the rental agreement for retail space due to urgent personal use after the purchase of the property
Unauthorized unilateral collective fee increase by the franchisor
In an important decision of the Amsterdam Court of Appeal of 23 April 2014, the question was whether a franchisor was allowed to implement an increase in a contribution.