Consumer Protection Applies to Franchisee
The consumer enjoys broad protection on the basis of the Civil Code. Although freedom of contract is paramount within general contract law, this freedom is legally limited with regard to the consumer. The reason for this is that the consumer is seen as the relatively weaker party in relation to a business party. In the relationship between franchisor and franchisee, the franchisee is in some cases also seen as the relatively ‘weaker’ party, as a result of which the legal protection of the consumer also applies to the franchisee.
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mr. M. Munnik – franchise lawyer.
Ludwig & Van Dam attorneys, franchise legal advice. Do you want to respond? Go to dolphijn@ludwigvandam.nl
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Developments in competition law
Some time ago, the Netherlands Competition Authority (NMa) made a groundbreaking ruling that is of great importance to all franchise organizations in the Netherlands.
Transfer Arrangements
Franchise agreements usually include transfer arrangements
The right to the formula name upon termination of the franchise relationship
In practice, discussions regularly occur when the franchise relationship is terminated between a franchisor and one or more franchisees
The possibility of actively or not actively recruiting customers outside
Based on the relevant regulations, active recruitment activities by the franchisee are permitted
Customers, clientele and exceptions thereto
Some franchise constructions have the characteristic that the products or services in question are only supplied to certain consumers.
Intellectual property rights
In general, the nature of a franchise relationship implies that, on the basis of a franchise agreement