Despite the franchisee’s counterclaim, the franchisor justified dissolution of the franchise contract
Court of Rotterdam
The Rotterdam court recently ruled that payment arrears of more than € 80,000 is sufficient for the franchisor to dissolve the franchise agreement.
The overdue payment is sufficient to terminate the franchise agreement, despite the fact that the franchisee claims that the franchisor has not made any marketing efforts or provided marketing materials, even though the franchisee has paid € 400,000 for this. However, according to the court, the alleged counterclaim is not substantiated at all. Furthermore, it has not become apparent that the franchisee has given the franchisor notice of default at any time, so that there can be no question of default on the part of the franchisor and therefore no due and payable counterclaim has arisen. Suspension of payment arrears of more than € 80,000 is therefore not justified.
The Rotterdam court therefore ruled that the franchisor was right to dissolve the franchise agreement and furthermore decreed that the franchisee may no longer act as a franchisee to the outside world. Furthermore, the claim of more than € 80,000 to be paid.
For suspension by the franchisee in such a situation it is necessary that there is a well-founded substantiation, including notice of default, and not that the unsubstantiated allegation is raised in court for the first time.
Mr Th.R. Ludwig – Franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice Would you like to respond? Mail to ludwig@ludwigvandam.nl
Other messages
Column Snack courier no. 8: “With 7 steps you comply with the privacy law”
Much has already been written about the General Data Protection Regulation (GDPR). The law has been applicable since 25 May, but many companies have not yet had their privacy policy in order.
Forced to switch to a different franchise formula at the existing location?
If a franchise formula ceases to exist, for example if it is incorporated into another organization, the question may be whether the franchisee is also obliged to be incorporated into
Column Franchise+ – 50 percent more franchise lawsuits
The 2018 Legal Franchise Statistics published by Ludwig & Van Dam Advocaten shows that there has been a 50% increase in the number of judgments in court cases rendered in 2017 compared to
A closer look at the intention to introduce franchising legislation
On May 23rd, State Secretary Mona Keijzer informed the House of Representatives about the imminent franchise legislation. The National Franchise Guide previously published this article.
Consumer Protection Applies to Franchisee
The consumer enjoys broad protection on the basis of the Civil Code.
Update Franchise Law
On 23 May 2018, the government indicated that it would prepare a legal regulation that creates a framework for four sub-areas of cooperation between franchisors and franchisees that are crucial