{"id":6043,"date":"2020-03-27T00:00:00","date_gmt":"2020-03-26T23:00:00","guid":{"rendered":"https:\/\/www.ludwigvandam.nl\/article-franchise-current-state-of-affairs-franchise-act-dated-march-27-2020-mr-aw-dolphin\/"},"modified":"2023-07-07T17:43:33","modified_gmt":"2023-07-07T15:43:33","slug":"article-franchise-current-state-of-affairs-franchise-act-dated-march-27-2020-mr-aw-dolphin","status":"publish","type":"post","link":"https:\/\/www.ludwigvandam.nl\/en\/article-franchise-current-state-of-affairs-franchise-act-dated-march-27-2020-mr-aw-dolphin\/","title":{"rendered":"Article Franchise+ &#8211; Current state of affairs Franchise Act &#8211; dated March 27, 2020 &#8211; mr. AW Dolphin"},"content":{"rendered":"<p><i>The legislative process regarding the Franchise Act continues despite everything<br \/>\n  forth. The government can ask further questions about the bill<br \/>\n  form the basis of the debate to be held in the House of Representatives about it<br \/>\n  bill.&nbsp;<\/i><\/p>\n<p>\n  On March 12, 2020, members of the standing committee for Economic Affairs<br \/>\n  and Climate questions to the government in response to it<br \/>\n  bill of 10 February 2020 for the Franchise Act. This committee is<br \/>\n  charged with the preliminary examination of the bill. The questions<br \/>\n  the government may be indicative of it yet to be scheduled<br \/>\n  parliamentary debate.<br \/>\n    \n<\/p>\n<p>\n  Some salient questions include the following:<br \/>\n    \n<\/p>\n<p>\n  \u00b7 There are doubts about the scale and seriousness of the problems in the<br \/>\n  franchise sector: The question is asked whether there are any numerical substantiations for this<br \/>\n  the alleged problems in the franchise industry, subject to the sources cited<br \/>\n  from one newspaper?<br \/>\n    \n<\/p>\n<p>\n  \u00b7 Franchising often involves cross-border agreements.<br \/>\n  Would the Franchise Act also apply to franchise organizations that<br \/>\n  have branches in other countries? Does the government see risks for the<br \/>\n  competitive position of the Netherlands?\n<\/p>\n<p>\n  \u00b7 Pointing out the many different types of franchise relationships,<br \/>\n  including cases where there is no imbalance. requested<br \/>\n  how this can be incorporated into the bill. You will also be asked if<br \/>\n  it has been considered to exclude small franchisors.\n<\/p>\n<p>\n  \u00b7 More clarity is required about the duty of investigation of the<br \/>\n  aspiring franchisee. How far does the obligation to investigate extend<br \/>\n  franchisee and what must the franchisor disclose? How does<br \/>\n  the absence of the forecast obligation to the historical obligation<br \/>\n  share data?\n<\/p>\n<p>\n  \u00b7 When entering into a franchise agreement, a<br \/>\n  stand-still period introduced, during which the fully informed<br \/>\n  franchisee can still withdraw. How does this relate to the<br \/>\n  need to safeguard the formula secrets of the franchisor?\n<\/p>\n<p>\n  \u00b7 Franchisees would be given certain consent rights over<br \/>\n  for example formula changes. The question is how to prevent this<br \/>\n  inhibits innovation. Shouldn&#8217;t it also be possible for the<br \/>\n  franchisor to set up pilots?\n<\/p>\n<p>\n  \u00b7 The obligation to allocate goodwill to a franchisee<br \/>\n  the end of the franchise agreement only counts as the franchisor<br \/>\n  continues the business (with another franchisee). It is unclear whether<br \/>\n  this also applies if the company fails to do so during a bridging period<br \/>\n  being operated.\n<\/p>\n<p>\n  \u00b7 If the franchisee exceeds a (included in the franchise agreement)<br \/>\n  level is required to make investments and expenditures, then the<br \/>\n  consent of the franchisee is required. It is requested or also agreed<br \/>\n  could be that the franchisor can nevertheless make the expenses<br \/>\n  obligation, but agrees to compensate the franchisee afterwards<br \/>\n  for any harm suffered.\n<\/p>\n<p>\n  For franchisors and (prospective) franchisees, legislation on the<br \/>\n  franchising have a major impact. It matters to them<br \/>\n  closely monitor developments in this area and, where necessary, anticipate them<br \/>\n  on upcoming changes. The corona crisis will undoubtedly (delay)<br \/>\n  have effects on some things, but there will certainly be no question of adjustment<br \/>\n  are.\n<\/p>\n<p><a href=\"https:\/\/shorturl.at\/doyQ0\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/franchiseplus.nl\/column\/actuele-stand-van-zaken-wet-franchise\" target=\"_blank\" rel=\"noopener\">Click here for the published article.<\/a><\/p>\n<\/p>\n<p>&nbsp;<\/p>\n<p>mr. AW Dolphijn \u2013 franchise lawyer<br \/>\n    \n<\/p>\n<p>\n  Ludwig &amp; Van Dam Franchise attorneys, franchise legal advice. Want<br \/>\n  do you want to respond? Go to <a href=\"mailto:dolphijn@ludwigvandam.nl\">dolphijn@ludwigvandam.nl<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The legislative process regarding the Franchise Act continues despite everything.<\/p>\n","protected":false},"author":8,"featured_media":5056,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[214],"tags":[],"class_list":["post-6043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-statements-current-affairs"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Article Franchise+ - Current state of affairs Franchise Act - dated March 27, 2020 - mr. 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