Research into numbers of franchise procedures

We recently published a brief survey of franchise jurisprudence over the past six years on the website www.ludwigvandam.nl .

The numbers of judgments recognizable as such on the basis of the search term “franchise” on Rechtspraak.nl were classified by subject and it was noted whether the franchisor or franchisee won the proceedings. This short investigation has set many pens in motion in the run-up to the debate in the House of Representatives on the call for legislation. Some wrongly conclude from the research (without citing the source) that there would have been no structural deterioration in the position of franchisees. It should be emphasized that this conclusion cannot (yet) be drawn from the inventory study. After all, it is precisely those, often interested parties, who argue this that it is often impossible for many franchisees to bring a procedure to a successful conclusion for reasons of a financial nature alone, if bankruptcy and/or debt restructuring are not impossible. makes. Many cases are settled for that reason and also for other reasons. In addition, there are many forms of alternative dispute resolution such as mediation and arbitration, as well as binding advice, which procedures are prescribed in almost all franchise agreements. Some franchisors even go so far as to mandate foreign arbitration under foreign law. Fortunately, specialized advisers on both sides are also able to persuade the parties to reach a reasonable solution in order to avoid going to court. Finally, not all case law is published. Although the research does say something about the development in size versus time, as well as the bottlenecks that occur in practice, it cannot be concluded that there is no need for better regulation. If only because the size of the industry and the many complex issues now require it.

The study therefore provides no more than a good first insight, as well as, as far as known, also the only numerical substantiation of the current discussion about whether or not there is a need to introduce legislation. So far, a great deal has been written about the alleged scope and content of the problem, but no one has made the effort not only to base this on a few, often unrepresentative, incidents, but first of all to attempt to to draw those conclusions to conduct an inventory study. 

Mr. J. Strong  – Franchise attorney

Ludwig & Van Dam Franchise attorneys, franchise legal advice. Do you want to respond? Mail to Sterk@ludwigvandam.nl