Franchise council: necessity or wisdom?
When developing a franchise organization, the usefulness and necessity of a franchise council is invariably discussed. One of the first questions that comes to mind is whether a franchise council is mandatory. The answer is no. There is no legal rule that requires the franchisor and franchisee to establish a franchise council. However, the widely held view is that a franchise council is of course very useful. Such a council is usually set up when there are five and ten franchisees respectively. However, is it now necessary in that situation to actually move to a franchise council?
Not in itself. A franchise council is nothing more or less than a means of communication between the franchisor and franchisees. In a mature franchise council, ideas are exchanged on various topics such as purchasing, marketing, market development, etc. However, this consultation can also take place in another way. For example, (informal) consultation can take place on various topics with all franchisees together, or with a relevant part of them. This can take place in a form-free meeting. It is of course also possible to record this. It is primarily important that the franchisor and franchisee exchange ideas openly and that the parties express their concerns about their concerns. It is important that this opportunity is provided in all openness. If this happens, then strictly speaking it may not even be necessary to formally structure the consultation in the form of a franchise council. This also means that it is wise to set up a franchise council at some point. A good franchise council meets at least a few times a year. The sitting franchisees are ideally delegated by their own supporters, so that their contribution is made democratically. In practice, however, it is not always easy to find willing candidates and it is necessarily chosen that the franchisor itself recruits and appoints the candidates.
Spontaneous consultation can therefore fulfill the same function as a well-functioning franchise council. It is important that this is actually implemented regularly and that there is sufficient opportunity to do so.
Ludwig & Van Dam franchise attorneys, franchise legal advice
Other messages
Delivery obligation?
Many buyers, including franchisees, are of the opinion that there is a delivery obligation in the Netherlands, meaning that suppliers are obliged to deliver goods if a potential
Internet in franchise relationships
If, in the context of a franchise relationship, internet and e-commerce are discussed in order to sell the goods/services of the franchise organization digitally
Use of telephone and fax numbers after the
Most franchise agreements stipulate that after termination of the franchise agreement, the former franchisee must comply with a non-competition clause.
Recent developments regarding resale price maintenance
On February 13, 2004, the administrative judge of the District Court of Rotterdam rendered a judgment between Secon Group BV
Reinvestment / restyling within an existing franchise concept.
In practice, we have recently seen more and more developments that point to a conversion/restyling of the franchise organization
Agency: some outlines
In practice, questions are asked with some regularity regarding the legal nature