Termination of lease agreement after purchase of retail space
High Council
At the end of 2010, the Supreme Court ruled on the waiting period that applies to termination due to urgent personal use. From a legal point of view, the purchaser of retail space must observe a three-year waiting period after acquiring it and informing the tenant of this acquisition before being terminated due to urgent own use, for example due to renovation.
At the end of last year, however, the Supreme Court ruled that this waiting period only applies after termination of the lease due to urgent personal use at the end of the first lease term, ie the first five years. In particular for scarce retail spaces, this means that it becomes easier for buyers of such real estate, often scarce supermarket locations, to compete in this way, because, in cases where the lease lasts longer than the first term, that lease is can cancel after purchase, due to a weighing of interests and/or urgent personal use. In that case, in principle, only a contribution towards the removal and refurbishment costs is due to the tenant. In addition, where applicable, one may be obliged to reimburse the benefit that one enjoys from exercising a similar activity after eviction. This could therefore be a reason for (prospective) tenants to consider entering into the lease for a longer period than, as a rule, five years. It goes without saying that entering into the duration of a rental agreement should always be weighed against other risks. Furthermore, the question remains whether the line currently being taken by the Supreme Court will hold up in other and subsequent cases.
In the case of mixed lease/franchise agreements, this means, among other things, that the subtenant/franchisee runs a greater risk of (premature) termination of the (sub)lease agreement and, as a result, a greater interest may arise for the parties. and with the prior permission of the subdistrict court judge.
Mr J. Sterk – Franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice Would you like to respond? Mail to info@ludwigvandam.nl
Other messages
Signing a Franchise Agreement in the Digital Age – Mr. K. Bastiaans – dated December 14, 2020
Within today's society, under the guise of 'the new normal', digitization is increasing. The court will discuss in more detail the manner in which an agreement is accepted and the consequences.
The sale of tobacco at supermarkets will be banned in 2024. What are the constraints and opportunities for the supermarket business? – mr. C. Damen – dated December 8, 2020
To promote and discourage smoking cessation, the sale of tobacco in supermarkets will be banned in 2024.
Franchise Act will take effect on January 1, 2021 – mr. AW Dolphijn – dated December 3, 2020
The Franchise Act was already adopted on July 1, 2020, but it has now also been established by Royal Decree that the Franchise Act will enter into force on January 1, 2021.
Supermarket newsletter -29-
Supermarket newsletter -29-
Article Franchiseplus: “Divide the pain” – mr. Th.R. Ludwig – dated December 1, 2020
The corona crisis has brought many franchisors and franchisees into ...
Article De Nationale Franchise Gids: “Settlement problems with franchisee who is a general partnership” – mr. JAJ Devilee – dated November 30, 2020
In a recent dispute, two ex-spouses faced each other in an appeal procedure regarding the question whether the ex-wife forfeited penalty payments against the private company.