A time of draconian measures with far-reaching consequences. Legal
\n there is a lot of ambiguity, also in franchise relations. On the one hand there are
\n forced shop closures in the hospitality industry. The franchisee cannot handle this
\n the obligations under the franchise agreement, such as a purchase obligation,
\n to fulfil. On the other hand, supermarket entrepreneurs, for example, are struggling with a
\n explosive demand and shortages on the shelves. The franchisor can
\n cases do not meet demand and are not delivered on the
\n orders. Extreme conditions! <\/p>\n
\n Extreme circumstances such as force majeure?<\/u>
\n \n<\/p>\n
\n There will be few franchise agreements in which expressly
\n it has been laid down what the rights and obligations of the parties are in times of the
\n emergency measures, as currently under discussion. Yet it is as well
\n possible that agreements have been laid down in the contracts. On the first
\n Instead, it is important to examine the content of the agreements. For whose
\n risk comes the impossibility to fulfill?\n<\/p>\n
\n In principle, contractual agreements take precedence over the law. If there is none
\n agreements, then the law applies. The law stipulates that force majeure no
\n causes malpractice.
\n \n<\/p>\n
\n \u201cA shortcoming cannot be attributed to the debtor if they
\n is not due to his fault, nor by law, legal act or
\n prevailing views in traffic is at his expense.\u201d\n<\/p>\n
\n If a franchise contract is no longer due to an (emergency) law of the government
\n can be exercised, there may be force majeure. The
\n franchisee who is required to open the doors of his store on weekdays
\n to keep open (operating obligation), can be difficult to do as a
\n emergency measure prohibits this. The franchisor who is not the extreme demand
\n can handle for practical reasons, that can perhaps not be faulted.\n<\/p>\n
\n An (emergency) law can also contain rules on how risks are distributed
\n and when force majeure can be invoked.
\n Furthermore, the judge can be asked to intervene and make a case
\n adapt to unforeseen circumstances.
\n \n<\/p>\n
\n Under certain circumstances, despite force majeure, a
\n obligation from the agreement be suspended, or an agreement
\n be terminated prematurely. This greatly depends on the circumstances of
\n the case.
\n \n<\/p>\n
\n What to do in extreme conditions<\/u>
\n \n<\/p>\n
\n It totally depends on the contractual arrangements and the specific
\n circumstances, but a guideline is the following:\n<\/p>\n
\n 1. Find out if there are force majeure provisions;\n<\/p>\n
\n 2. If you invoke force majeure: share with the contractual counterparty
\n (motivated) also that there is force majeure and cannot be done
\n fulfilled;\n<\/p>\n
\n 3. Are you confronted with an appeal to force majeure: ask how long
\n cannot be fulfilled;\n<\/p>\n
\n 4. Is damage covered by insurance?\n<\/p>\n
\n 5. It may be considered to review whether obligations from the contract
\n can be suspended;\n<\/p>\n
\n 6. Consideration may be given to whether the contract can be dissolved;\n<\/p>\n
\n 7. Start the conversation and discuss!\n<\/p>\n
\n It is important to act with caution and a reasonable attitude is of
\n required everyone! For further information you can contact us at any time
\n consult.<\/p>\n
<\/p>\n
\n mr. AW Dolphijn \u2013 franchise lawyer\n<\/p>\n