The limitation of a non-competition clause
Court of Almelo, preliminary relief judge
A former franchisee has a non-compete clause in his franchise agreement, which prohibits him from entering into a partnership with a party competing with the franchisor during and for two years after the termination of the franchise agreement. Apparently, the ex-franchisee intends to become an employee of such a competitor, because he asks the court to prohibit the franchisor from implementing the non-compete clause. The court takes a very formal approach and states that, partly in view of the termination of the franchise agreement, only the former franchisee can (still) implement the non-compete clause. In the opinion of the court, imposing an injunction on the franchisor is therefore not appropriate.
Mr JH Kolenbrander – Franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice Would you like to respond? Mail to coalbrander@ludwigvandam.nl
Other messages
Developments in competition law
Some time ago, the Netherlands Competition Authority (NMa) made a groundbreaking ruling that is of great importance to all franchise organizations in the Netherlands.
Transfer Arrangements
Franchise agreements usually include transfer arrangements
The right to the formula name upon termination of the franchise relationship
In practice, discussions regularly occur when the franchise relationship is terminated between a franchisor and one or more franchisees
The possibility of actively or not actively recruiting customers outside
Based on the relevant regulations, active recruitment activities by the franchisee are permitted
Customers, clientele and exceptions thereto
Some franchise constructions have the characteristic that the products or services in question are only supplied to certain consumers.
Intellectual property rights
In general, the nature of a franchise relationship implies that, on the basis of a franchise agreement