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
The manager (employee) who becomes a franchisee – fictitious employment?
On 14 December 2016, the subdistrict court judge of the District Court of Noord-Holland, ECLI:NL:RBNHO:2016:11031 (Employee/Espresso Lounge), considered the situation in which an employee
The Supreme Court sets strict requirements for franchise forecasts
A ruling by the Supreme Court on Friday casts a new light on the provision of profit and turnover forecasts to aspiring franchisees.
Infringement of exclusive service area by franchisor in connection with formula change dated February 27, 2017
On 30 January 2017, the provisional relief judge of the District Court of Noord-Holland, ECLI:NL:RBNHO:2017:688 (Intertoys/franchisee), was asked how to deal with the
Forecasts at startup franchise formula
The Amsterdam Court of Appeal ruled on 14 February 2017, ECLI:NL:GHAMS:2017:455 (Tot Straks/franchisee) on the question whether the franchisor had provided an unsatisfactory prognosis and whether the
Mandatory transfer of franchise business to franchisor?
On January 23, 2017, the District Court of Amsterdam, ECLI:NL:RBAMS:2017:412 (CoffeeCompany/Dam Spirit BV) rendered a judgment on the question whether a franchisee upon termination of the cooperation
Transfer customer data to franchisor
In its judgment of 10 January 2017, ECLI:NL:GHAMS:2017:68 (OnlineAccountants.nl), the Amsterdam Court ruled, among other things, on the question of how customer data should be transferred.