Liability accountant for prepared prognosis?
In a judgment of the Court of Appeal of ‘s-Hertogenbosch of 11 July 2017, ECLI:NL:GHSHE:2017:3153, it was discussed that franchisees accused the franchisor’s accountant of being liable for an unsatisfactory forecast.
The court has appointed an expert. The expert has come to the conclusion that the prognosis is understandable and has been drawn up in accordance with the usual working method. The expert also pointed out that differences between the forecast and the actual figures are limited. Furthermore, the expert pointed out some shortcomings of the fact that the conflict of interest has not been recorded and some shortcomings are not such that the prognosis would be unreliable.
In line with this, the Court of Appeal ruled that the accountant acted as may be expected from a reasonable acting and reasonably competent accountant.
The question of whether the prognosis is sound is assessed by the Court of Appeal on the basis of the standard for professional liability. Liability of a franchisor for a faulty forecast could also be assessed by whether the franchisor acted as would be expected of a reasonable and reasonably competent franchisor in recruiting franchisees.
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
Indirect price maintenance
As is well known in franchising practice, resale price maintenance is out of the question.
Indemnity I
Many franchise contracts contain clauses that must indemnify the franchisor against the conduct of the franchisee.
The professional problem solver: the judge reinvented
In our society, a true alternative circuit of problem solvers exists, including in the form of mediators.
Nice weather as an excuse?
Legal discussions are regularly held about the question of whether disappointing visitor numbers
Acquisition of inventory and goods
Many franchise agreements, especially where retail situations are concerned
Franchise Self-Employment: Another Episode
In practice, it often happens that a franchisor finds it difficult to recruit new franchisees.