As soon as the passed bill enters into force, it has immediate effect
\n effect on franchise agreements that already exist. The plan is that Law
\n franchise will enter into force on 1 January 2021, so the question is whether the
\n information flows are legally optimally arranged.<\/p>\n
\n An example of the information obligation in current franchise agreements
\n is the franchisor’s obligation to be accountable
\n about the use of the financial contributions paid by franchisees
\n to have. Through this obligation, the franchisee can up to
\n check to some extent whether the requested contributions are not unreasonably high.
\n Franchisees would then be able to reclaim the “overpayment”.\n<\/p>\n
\n Another example is the franchisor’s obligation to provide certain
\n provide information of which the franchisor knows or reasonably knows
\n may suspect that it is important with a view to carrying out the
\n franchise agreement by the franchisee. So this is what it’s about
\n situations of pre-existing franchise agreements. Intended is the
\n provide the franchisee with the necessary transparency in a timely manner regarding certain
\n (proposed) acts of and developments at the franchisor. Than
\n can the franchisee prepare for this in good time, for example by doing so
\n necessary to request further information or consultation and in good time if necessary
\n make necessary adjustments to its own business operations or
\n make any financial reservations.\n<\/p>\n
\n The information to be provided by the franchisor shall be such
\n manner, that that information is and remains accessible
\n for the other franchisee, as long as it serves the purpose. The to provide
\n information also serves the average franchisee within the
\n relevant chain clearly, comprehensibly and unambiguously formulated and
\n be designed.\n<\/p>\n
\n By no means all franchise organizations have a clear picture of which information
\n which moment to share. Sometimes it is so important
\n trade secrets that it is undesirable to place the franchisees in a (too)
\n information at an early stage. It seems that many franchisor rush
\n will have to deal with the organization of legal information flows.
\n Diligence is called for now that January 1, 2021 is fast approaching.\n<\/p>\n
\n mr. AW Dolphijn \u2013 franchise lawyer\n<\/p>\n