Franchise & Law No. 5 – Acquisition Fraud and Franchising Act
The Acquisition Fraud Act came into effect on 1 July 2016. This includes amendments to Section 6:194 of the Dutch Civil Code. In short, the amendment means that if there is misrepresentation when offering goods or services in business relationships, this will result in an unlawful act. This implies that the Acquisition Fraud Act also applies in the pre-contractual phase of entering into a franchise agreement.
In this contribution, the civil law aspects of the Acquisition Fraud Act and the pre-contractual phase in entering into franchise agreements will be examined in more detail, in particular the reversal of the burden of proof.
Other messages
Franchisees: do not conclude arbitration clauses, but do take out legal expenses insurance
In conflicts between franchisor and franchisee, it often happens that the parties do not fight with equal arms.
Steady line in case law will be continued!
The judgment of the Supreme Court of 25 January 2002 has already been discussed several times in this series of articles.
Side effects of non-compete clauses
Many franchise agreements contain a non-compete clause, both during the term
Non-competition clause
Franchise agreements often include a non-compete clause
To rule is to look into the future
Supply and demand. Concepts that dominate the entire commercial world.
For clarity
The last period shows that discussions regarding goodwill payments at the end of a franchise partnership are still numerous.