The franchise agreement without (heavy demands on) know-how
In the 2023-1 edition of Contracting magazine, I published a contribution entitled: “The franchise agreement without (strict requirements for) know-how”.
For the qualification as a franchise agreement, the Franchise Act requires that there is a franchise formula of which know-how is a part. This law places high demands on this know-how. If these requirements are not met, there is no franchise agreement and the protective provisions of the Franchise Act are missing. The question is why such high demands are placed on know-how. It is concluded that the element of the necessarily present ‘know-how’ in the franchise formula should be weakened, so that the legal definition of the franchise agreement becomes broader.
The article can be ordered here from the publisher Boom Uitgevers.
Ludwig & Van Dam lawyers, franchise legal advice.
Do you want to respond? Then email to dolphijn@ludwigvandam.nl
Other messages
Article De Nationale Franchise Gids – Know-how decisive for scope of application Franchise Act – dated 5 March 2020 – mr. RCWL Albers
It will have escaped the attention of few in the sector that on 10 February 2010 the legislative proposal for the Franchise Act was submitted to the House of Representatives.
Column Franchise+ – A conflict can be prevented, just communicate well – February 2020 – mr. AW Dolphin
Formula changes are a fascinating topic. It is often the subject of conflicts, but those conflicts can be avoided.
Collection fraud results in franchisor 4 years in prison and a fine of € 7 million – dated 25 February 2020 – mr. JAJ Devilee
In a highly exceptional criminal case, the court recently sentenced one of the directors of a (former) franchisor to imprisonment and a fine.
Bill Franchise Act
Legislative proposal for the Franchise Act to the House of Representatives
Article De Nationale Franchise Gids – Bankrupt because the franchisor refused to sell the franchise company – dated January 28, 2020 – mr. AW Dolphin
Can a franchisor refuse to sell a franchise business to a prospective buyer, even if it is a last resort for the franchisee?
Supermarket Newsletter – 27
Supermarket Newsletter No. 27