The franchise agreement in The Netherlands
Franchise agreements are not regulated under Dutch law. In a franchise agreement, two parties agree that the franchisee, under certain very strict conditions, can use the brands, names, and concepts of the other party, the franchisor. The franchisee often also has to use the franchisor’s range of products. The franchisee usually pays a fixed fee, or pays a percentage of his turnover to the franchisor. There are many different formats of franchise agreements.
Terms, extension and termination of the franchise agreement
In practice, a franchise agreement is often for a term of five years, with an option for another five years. Unless agreed otherwise in the franchise agreement, the franchise agreement can be terminated at the end of this term. If the franchise agreement does not contain an agreement on the term of notice for termination, a reasonable term has to be held. What is considered a reasonable term has to be determined on a case-by-case basis, depending, among others, on the term of the agreement.
Dutch law firm AMS
Our contract lawyers are not only very experienced in negotiating on and drawing up franchise agreements, but will also litigate on their clients’ behalf, if necessary. We are fully committed to their clients’ cases, work in a horizontal organization and offer competitive fees. Please contact us for a meeting, free of charge and obligation.