Does a franchisee have to accept a new model franchise agreement?
On 31 March 2017, the District Court of Rotterdam, ECLI:NL:RBROT:2017:2457, ruled in interlocutory proceedings on the question whether franchisor Bram Ladage could have terminated the franchise agreement with its franchisee at the end of the term, because the franchisee has a new model. of its franchise agreement.
The franchisee was unwilling to sign the most recent standard franchise agreement and, according to Bram Ladage, was also unwilling to discuss this with the franchisor.
The franchise agreement stipulates that the franchisor is only entitled to terminate the agreement on the expiry date if it cannot reasonably be expected to continue the agreement. Bram Ladage has indicated that it can no longer be required to continue the franchise agreement beyond the expiration date.
To this end, she argued that the text in the 1997 franchise agreement is outdated and has caused major problems over the years, such as the lack of authority to monitor and monitor hygiene rules and the inability as a franchisor to make adjustments. and franchisee to address, for example, declining turnover or lagging quality of business operations.
Bram Ladage also pointed out the importance of uniform agreements with the franchisees. The court ruled that the pursuit of uniformity in all franchise contracts is not in itself a justification for termination. The fact that Bram Ladage is obliged under the franchise agreement to apply equal conditions in equal cases does not mean that the franchisee in question is automatically obliged to agree to amendments to the franchise agreement.
Bram Ladage is ordered to comply with the existing franchise agreement.
Franchisors would do well to go through a careful process in the event of intended unilateral changes in the franchise relationship, in which the interests of each individual franchisee are carefully weighed.
mr. AW Dolphijn – Franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice. Do you want to respond? Go to dolphijn@ludwigvandam.nl .
Other messages
Fine for franchisor because aspiring franchisee is foreigner
On 5 July 2017, the Council of State, ECLI:NL:RVS:2017:1815, decided whether, in the case of (proposed) cooperation between a franchisor and a prospective franchisee, the franchisor
Article in Entrance: “Company name”
“I came up with a wonderful name for my catering company and incurred the necessary costs for this. Now there is another entrepreneur who is going to use almost the same one. Is that allowed?"
The bank’s duty of care in franchise agreements
On 23 May 2017, the Court of Appeal in The Hague, EQLI:NL:GHDHA:2017:1368, had to rule on the question whether the bank should have warned a prospective franchisee in connection with the
Article in Entrance: “Standing up”
“Can I fire an employee with immediate effect if he steals something trivial, such as food that has passed its expiration date?”
Arbitration clause in franchise agreement sometimes inconvenient
On 20 July 2016, the District Court of Gelderland, ECLI:NL:RBGEL:2016:4868, ruled on the validity of an agreement in a franchise agreement, whereby disputes would be settled
Supermarket letter – 18
Can an entrepreneur be obliged to operate a different supermarket formula?