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 However, the franchisor considers the existing franchise agreement outdated and strives for uniformity.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
How do I keep my location? – June 6, 2019 – mr. K. Bastian
Location is of great importance to franchisors and franchisees, especially in the retail sector.
Supermarket letter – 25
Supermarket Newsletter No. 25
The benchmark for franchise forecasts – dated 29 May 2019 – mr. AW Dolphin
On 19 March 2019, the Den Bosch Court of Appeal, ECLI:NL:GHSHE:2019:1037, listed the case law of the Supreme Court on prognosis in franchising.
Franchise arbitration: too high a threshold? – mr. M. Munnik
When entering into an agreement, it is possible for the parties - contrary to the law - to designate a competent court. This also applies to the franchise agreement. Of this possibility
Franchise appeal for error due to incorrect forecasts and lack of support rejected – dated April 25, 2019 – mr. K. Bastian
The Court of Appeal of 's-Hertogenbosch ruled (ECLI:NL:GHSHE:2019:697) on the question whether the mere fact that forecasts did not materialize justifies the conclusion that the franchisee has been shortchanged...
Article De Nationale Franchise Gids: “Increasing protection against recruiting franchisees” – dated 2 April 2019 – mr. AW Dolphin
It is becoming increasingly apparent that recruited franchisees can be protected on the basis of the Acquisition Fraud Act.