Legal assistance with franchise agreements
The franchise agreement is not regulated by law. It is an agreement whereby the franchisor grants a franchisee permission to use his brands, names and concepts. In this way, the franchisee is enabled to operate a branch using the franchisor’s concept, logo, name, etc. The franchisee usually pays a fee or percentage of sales to the franchisor.
Subjects of the franchise agreement
Now that the franchise agreement is a non-statutory agreement, it is important to clearly define the subjects and agreements that are laid down in the franchise agreement. It follows from the case law that the franchisor has an obligation to make efforts to support the franchisee to exploit the formula.
The following topics can be incorporated in franchise agreements:
– A description of the to be exploited formula;
– Duration of the agreement, notice periods and grounds for extension of the agreement;
– The obligations that the franchisor has towards the franchisee, including training, education, degree of information provision, etc.;
– Use of the franchisor’s intellectual property rights;
– The franchisee’s obligations: payment obligations, administration, reporting obligations;
– Defining the area in which the franchisee may be active;
– Rights of the franchisor to make adjustments to the formula;
– A confidentiality clause with regard to the formula to be used;
– (Brand) promotion: how the franchisee and franchisor will promote and promote the work;
– Rental clauses with regard to any property to be rented;
– A non-competition clause: both during and after the franchise agreement.
Method of cancellation or termination of the franchise agreement
Franchise agreements are usually entered into for five years with an option to extend it to another five-year period. If the franchise agreement does not contain an agreement on the notice period, a reasonable period must be observed. This depends, among other things, on the duration of the franchise agreement. The general terms and conditions can also contain provisions about this, so it is also important to take note of the general terms and conditions. However, as a rule of thumb, a franchise agreement can be canceled at the end of the term, this should thus be arranged in the contract.
Lawyer specialized in franchise agreements
Fennek’s lawyers have extensive experience with and knowledge of franchise agreements. They draw up, negotiate and litigate on franchise agreements. At Fennek lawyers, the lines of communication with clients are short and the rates are sharp. If you have any questions about a franchise agreement, please contact the franchise agreement attorney, Lisa Jie Sam Foek.