Dutch franchise law
Written by:
Hein Kernkamp
Franchise in the Netherlands
Until the new Dutch Franchise Act will enter into force, which is anticipated to be in 2021, the laws of The Netherlands do not contain a specific act with respect to franchise agreements. Hence, a franchise agreement under Dutch law is governed by the rules of general civil law, together with specific rules that are applicable to specific parts of the contract.
A franchise agreement is a contract by which the franchisor licenses its trade name and/or business system and practices for a fee to an independent company (the franchisee). The licensed rights can include the licensed right to use trademark names, secret commercial know-how and other distinguishing features, in the sale of products or services. The use of franchise agreements is widely spread in The Netherlands, but beware that specific arrangements can be prohibited by EU and national competition law.
The lawyers of our firm represent clients who are interested in entering or exiting their franchise relationship on their own terms. For individuals seeking to invest in a particular franchise opportunity, we will review the terms and conditions set forth in your franchise documents and provide advice and counsel regarding material provisions, including:
- financial obligations;
- the length/term of the agreement;
- choice of venue and choice of law with respect to disputes;
- renewal rights;
- territorial exclusivity;
- requirements for remodeling or refurbishing the location;
- the goodwill associated with the franchisor's trademarks;
- restrictions on transfer;
- default/termination provisions.
For franchisees looking to exit their franchise relationships, our attorneys are skilled and experienced in drafting and negotiating all of the legal documents required to effectuate the sale of your franchise investment.
Also see our article on the new Dutch Franchise Act, that was submitted to the House of Representatives and aims to create a healthier balance of power between franchisor and franchisee.
Further information
For additional information on Dutch franchise law please contact us. Your comments and questions are always welcome. Please feel free to contact us by mail or by phone to discuss what we can do for you. We are happy to help you. It is not without reason that our motto is: "Your problem, our concern."
More information?
Hein Kernkamp will gladly help you further.
