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
Fine for franchisor because aspiring franchisee is foreigner
On 5 July 2017, the Council of State, ECLI:NL:RVS:2017:1815, decided whether, in the case of (proposed) cooperation between a franchisor and a prospective franchisee, the franchisor
Article in Entrance: “Company name”
“I came up with a wonderful name for my catering company and incurred the necessary costs for this. Now there is another entrepreneur who is going to use almost the same one. Is that allowed?"
The bank’s duty of care in franchise agreements
On 23 May 2017, the Court of Appeal in The Hague, EQLI:NL:GHDHA:2017:1368, had to rule on the question whether the bank should have warned a prospective franchisee in connection with the
Article in Entrance: “Standing up”
“Can I fire an employee with immediate effect if he steals something trivial, such as food that has passed its expiration date?”
Arbitration clause in franchise agreement sometimes inconvenient
On 20 July 2016, the District Court of Gelderland, ECLI:NL:RBGEL:2016:4868, ruled on the validity of an agreement in a franchise agreement, whereby disputes would be settled
Supermarket letter – 18
Can an entrepreneur be obliged to operate a different supermarket formula?