Delivery stop by franchisor not allowed

On 9 February 2017, the provisional relief judge of the District Court of Gelderland, ECLI:NL:RBGEL:2017:1372, ruled that a franchisor was not allowed to suddenly stop its obligation to supply the franchisee, despite the fact that the franchisee was in substantial payment arrears. 

The franchisee had significantly reduced the payment arrears. For several years the franchisor had granted a substantial supplier credit for the remainder. It has not been established that the franchisor indicated at any time that the payment arrears were unacceptable to it as franchisor and that it had to be reduced to a certain amount within a certain period, or that it had to be repaid in full. The franchisor was therefore not free to suddenly take the position not to supply the franchisee anymore and to claim the full outstanding amount at once, without observing a term. 

Another thing is that the granting of the supplier credit does not automatically entail the obligation to allow and continue to allow a further increase. The franchisor was therefore (well) free to supply the franchisee against payment in advance. 

Franchisors cannot simply assume that they can always put the franchisee in jeopardy if the franchisee has payment arrears 

mr. AW Dolphijn – Franchise lawyer 

Ludwig & Van Dam Franchise attorneys, franchise legal advice. 

Do you want to respond? Go to dolphijn@ludwigvandam.nl .