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 However, the franchisor considers the existing franchise agreement outdated and strives for uniformity.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

Duty of care franchisor in the pre-contractual phase

The District Court of Limburg ruled on 6 April 2017, ECLI:NL:RBLIM:2016:2843, that the franchisor has a duty of care towards the prospective franchisee in the pre-contractual phase.

Franchisee avoids joint and several liability in private

In a judgment of 28 March 2018, ECLI:NL:RBROT:2018:2913, the District Court of Rotterdam ruled on the meaning of the clause in the franchise agreement stipulating that

Incorrect prognosis due to lack of location research

The District Court of The Hague ruled on 21 March 2018, ECLI:NL:RBDHA:2018:3348, that a franchisor's forecast was unsound, as a result of which the franchisee had erred and the franchisor

Column Franchise+ – “Disputes about franchise fees”

Lately, it has also hit the biggest franchise organizations in the Netherlands. At the formulas of Albert Heijn, Hema, Etos, Bruna and Olympia, for example, there was and will be a lot

By Alex Dolphijn|09-04-2018|Categories: Dispute settlement, Franchise Agreements, Statements & current affairs|Tags: , |

Column Franchise+ – “Flashing quarrels about franchise fee must stop”

Lately, it has also hit the biggest franchise organizations in the Netherlands. At the formulas of Albert Heijn, HEMA, Etos, Bruna and Olympia, for example, there was and will be a lot

By Alex Dolphijn|09-04-2018|Categories: Dispute settlement, Franchise Agreements, Statements & current affairs|Tags: , |
Go to Top