Franchise Act update

The Franchise Act emphasizes four key areas deemed crucial by the government for balanced franchise collaborations:

1. The pre-contractual exchange of information.
2. The interim modification of an ongoing franchise agreement.
3. The consultation between the franchisor and its franchisees.
4. The termination of the franchise collaboration.

Curious about what these components of the Franchise Act entail? Read our extensive explanation, in non-legal language, in this article.

Implications of the franchise act

The Franchise Act has a transition period of 2 years for some components. These are the provisions regarding the non-compete clause, the right of consent, and the valuation. All other regulations of the Franchise Act will take effect immediately once the Franchise Act is published in the official gazette. This has major implications for your franchise agreement, franchise manual, and the recruitment & selection process.

However, most franchise agreements last longer than the 2-year transition period. Therefore, use your time to align your franchise contracts and working procedures with the Franchise Act now. When a franchise agreement with a franchisee is renewed or newly concluded, an agreement can be signed immediately that remains appropriate throughout its term. It is also an excellent opportunity to review the entire franchise agreement for content and accuracy. Koelewijn & Partners will efficiently and comprehensively carry out this update for you!

What to expect from a Franchise Agreement update?

Our Franchise Agreement Update ensures that you know what needs to be done to make your franchise organization ‘Franchise Act-proof’. While reviewing the franchise agreement, we will also immediately check if it is still up-to-date with your franchise organization.

What do we offer?

• After receiving your current franchise agreement, we will review it in light of the Franchise Act, accuracy, and current relevance.
• You will receive your amended franchise agreement back from us, in accordance with the Franchise Act.
• We will explain the adjustments via phone, an appointment, or a video conference call.

Implementing other check-up findings

After adjusting your franchise agreement to the Franchise Act, we will inform you about further action points needed to comply with the Franchise Act. If desired, we can also implement these action points for you. Consider the following aspects:

• If there are additional points of attention in the franchise agreement, we will report, identify, and adjust them based on after calculation as needed.
• Prepare the PID template for your franchise formula. We will request all relevant information from you and draft a basic Precontractual Information Document for your franchise organization.
• The changes made to the franchise agreement also have implications for your franchise manual. Therefore, we can conduct a consistency check between your franchise manual and franchise agreement for you. Additionally, we will also assess your franchise manual in general.