Franchise agreements in the Netherlands
are not subject to a special franchising law
, however, franchises are subject to certain civil law aspects as well as the competition law and the general contract law. All franchise agreements
concluded in the Netherlands should be signed in good faith and be reasonable and fair.
A franchise agreement
will describe the legal relationship between a franchisor
and the franchisee
(the party buying the license for doing business). Investors interested in opening a franchise in the Netherlands
can set-up a private or public limited company or a partnership after they have obtained the license to do business from the franchisor.
Information included in a Dutch franchising agreement
The franchise agreement is the legally binding contract through which the franchisor allows the franchisee to use its trade name as well as the business system in order to form an independent company in the Netherlands. The parties have the right to choose the contractual terms and the duration of their agreement.
are protected by special laws, know-how disclosed in a franchise agreement
is not protected as intellectual property. For this purpose, a franchise agreement will generally fall within the scope of the competition law. Know-how disclosed specifically to a franchisee will be subject to a confidentiality clause and it can also include non-patented know-how.
The information and data included in a franchising agreement include:
- identification details for both parties,
- the trademark names and know-how disclosed to the franchisee,
- the rights granted by the franchisor to the franchisee,
- the franchise fee, its location and other details,
- transfer restrictions and territorial exclusivity
- grounds for termination.
The experts at our Dutch law firm can help you draw up a franchise agreement if you wish to open a franchise in the Netherlands.
Franchise agreement termination in the Netherlands
The franchise agreement may have a fixed term or an indefinite term. The parties may agree upon this before signing the contract. Upon termination, a reasonable notice period may be taken into account. If one of the parties breaches the terms of the agreement or the confidentiality terms, then the franchise agreement may be terminated. Some confidentiality terms can survive the termination date of the agreement.
If you are interested in opening a franchise in the Netherlands
or need legal assistance for concluding this type of agreement, please contact our Dutch law firm
. Our lawyers can help you with various legal and tax issues. They can also give you more details on how the Netherlands double tax treaties
work and how a foreign investor can take advantage of their provisions.