Column Franchise+ – mr. Th.R. Ludwig: “Judge: franchisor’s duty of care comparable to that of a bank”
Various judgments in 2016 made it clear how high the standard of care for a franchisor towards its franchisees is.
In one of the relevant issues, the franchisees purchased from the franchisor, who in turn purchased the inventory from various suppliers, which was then delivered to the franchisees. The franchisor therefore pre-financed through these purchasing costs. This situation is very similar to direct supply by the franchisor in its capacity as supplier.
Other messages
Silent extension
Many franchise agreements contain provisions governing the termination and possible continuation of the existing franchise agreement.
Abuse of bankruptcy law
The right must be used for the purpose for which it was written.
Transfer of the Franchisor’s Business: A Follow-up
In previous contributions in this section, aspects of the transfer of the company have already been discussed
Market and market share
Some notable rulings have recently been made in the field of franchising and competition law
Freedom of contract in franchising
The post-contractual non-compete clause in the franchise agreement is perhaps the most discussed clause in franchising.
The hardness of a non-competition clause in bankruptcy
Most franchise agreements contain post-contract non-competition clauses