Franchisor prohibits opening (franchise) company
A franchisor applied for interim measures to prohibit a franchisee from opening a franchisee’s business. See Court of the Northern Netherlands 26 June 2018, ECLI:NL:RBNNE:2018:2428. The franchisor believed that the franchisee had wrongly failed to consult with the franchisor before opening the business, to which the franchisee had invited 80 to 100 people.
The preliminary relief judge rules that the franchisee is in breach of contract by deliberately planning the opening of the company outside the franchise agreement without referring to the franchisor, while it has been established that the company was set up thanks to the franchise agreement. Moreover, it has been established that the franchisor and franchisee had precisely agreed that the opening of the company would take place in joint consultation. The preliminary relief judge prohibits the official opening of the company planned by the franchisee, despite the fact that the invitations had already been sent and the planning had already been established.
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
The non-competition clause in the franchise agreement
A common clause in the franchise agreement is a so-called post-contractual non-compete clause.
Formula change by the franchisor is not automatically a ground for dissolution
A franchisee generally participates in a franchise formula for certain specific reasons.
Article Food magazine November 2011
Article Food magazine November 2011
Start as a Commercial Agent
Start as a Commercial Agent
The extensive retention of title: a valuable clause in bad times
The retention of title can no longer be ignored in the general terms and conditions of sale and delivery of a supplier.
Seven crucial factors in franchising
Seven crucial factors in franchising