Column Franchise+ – mr. J Sterk: “Court orders fast food chain to extend franchise agreement
The right to extend the franchise agreement
The case is set to begin this year. The franchisee has been refusing for years to sign the new franchise agreement that is offered upon renewal, as this would entail a deterioration of his legal position. However, the franchisor considers the existing franchise agreement outdated and strives for uniformity. However, the franchisee wants to negotiate the content with his lawyer first. The franchisor does not like this and points out that due to the conflict that has arisen and the interference of the lawyer, fruitful cooperation would no longer be possible. The franchisor then terminates the franchise agreement. The franchisee then starts summary proceedings. The court is of the opinion that the franchisor was too hasty and should have negotiated the terms of the extension with the franchisee and his lawyer. The franchisor is sentenced to extend the franchise agreement until an irrevocable decision has been made in proceedings on the merits that have apparently yet to be started, and that can take years, including an appeal and possibly even cassation.
Other messages
Know-how and identity protection
One of the most essential parts of a franchise formula is
Internet sales in a franchise relationship
Internet sales are also enjoying increasing interest in conventional franchise circles.
What role does the franchisor play in the sale of a franchise business?
When a franchisee is thinking about selling his business, it is advisable
Litigation costs order
There is often a misconception about the reimbursement of legal costs
Franchisor in trouble, what to do?
It seems inevitable that the world is heading for a recession.
The bankrupt franchisor
In the penultimate contribution to this column, the phenomenon “Franchisor in difficulties, what to do?” discussed.