No obligation to use a rental property as a supermarket
The Arnhem-Leeuwarden Court of Appeal has made a decision on whether the tenant of a building was obliged to operate a supermarket formula, or whether other retail practices should also be allowed in the building. See Arnhem-Leeuwarden Court of Appeal on 25 May 2023, ECLI:NL:GHARL:2023:4348.
Marqt had entered into a lease with regard to a building with the aim of operating a supermarket there according to the Marqt formula. Marqt is then taken over by Udea. Udea operates a supermarket opposite the building according to the Ekoplaza formula. For that reason, Marqt no longer wants to operate a Marqt supermarket in the rented property. Marqt then leases the space to a third party, who operates a furniture store there. The property owner demanded that Marqt still operate a supermarket according to the Marqt formula.
The rental agreement stipulates that the rented property is intended to be used for retail. It is also stipulated that the lessor guarantees that Marqt can use the leased property for a shop in accordance with the Marqt formula. The Court of Appeal ruled that by using the word ‘retail trade’, the parties intended to agree on a broader purpose for use than just that for a ‘shop in accordance with the Marqt formula’ or a ‘supermarket’.
The lessor pointed out that it had been agreed that it would pay an investment contribution to Marqt, which it also did, so that Marqt could make the rented property suitable for the establishment of a Marqt supermarket. With this investment contribution, the building has been adapted on behalf of Marqt into a more open, multifunctional retail space, suitable for all kinds of retail, including a supermarket. According to the court, it cannot be concluded from this that it had been agreed that the use of the building would be limited to the operation of a Marqt supermarket only.
The landlord’s claim to use the rented property as a supermarket was rejected by the court.
This judgment once again shows the importance of the formulation of the agreements made in writing.
Ludwig & Van Dam lawyers, franchise legal advice.
Do you want to respond? Then email to dolphijn@ludwigvandam.nl
Other messages
Legal ban on unilaterally changing opening hours by the franchisor – July 13, 2020 – mr. J. Strong
Legislative proposal of the State Secretary which, in short, means that the shopkeeper may not be bound by unilateral changes to the opening hours during the term of the agreement.
No right to extension of franchise agreement – July 6, 2020 – mr. AW Dolphin
Can a franchisor refuse to renew the franchise agreement if the franchisee does not agree to amended terms of a new franchise agreement?
Amsterdam Court of Appeal restricts franchisor’s appeal to non-competition – dated July 6, 2020 – mr. T. Meijer
On 30 June 20202, the Amsterdam Court of Appeal ruled that a franchisor is not entitled to an (unlimited) appeal to a contractual non-competition clause.
Vacancy lawyer-employee
Ludwig & Van Dam Advocaten is a law firm that specializes entirely in franchise and other partnerships and is the market leader of its kind in the Netherlands.
Qualitaria franchisee put in his shirt – dated July 2, 2020 – mr. JAJ Devilee
The District Court of Zeeland-West-Brabant has rendered a judgment in legal proceedings initiated by a Qualitaria franchisee.
Supermarket newsletter -28-
Supermarket newsletter -28-