Home / Europe / Netherlands / Commercial / Distribution & Franchising

Distribution & Franchising

Law Firm in the Netherlands specialised in Distribution & Franchising

Back to Commercial

Franchising is a form of distribution that is increasingly being chosen by companies. Franchising combines independent entrepreneurship for the franchisees with an opportunity to connect with and make use of a total concept devised and developed by the franchisor. There are currently about 800 franchise formulas in the Netherlands, and this number is continuing to rise, particularly in the (business) service sector.

Uniformity in the formula is essential. The formula ensures recognizability for the consumer or customer and offers the possibility of achieving scale benefits through joint purchasing, advertising, automation, etc.

Since the introduction of the Franchise Act on 1 January 2021, franchising is subject to a specific legal framework. This means that franchising is subject to various mandatory provisions which may not be deviated from to the detriment of the franchisees. Furthermore, the franchise relationship contains elements of various agreements, such as purchase, license, rent and forms of financing. In addition, competition law plays an important role in the franchise relationship.

CMS has a well-established national and international franchise practice within its organization, with extensive experience in drafting franchise agreements, amending franchise agreements and supervising the start and changes within franchise organizations. CMS also mediates and litigates on a regular basis in disputes between franchisor and franchisee.

If you have any questions about a franchise relationship, please contact CMS.

Subscribe to Commercial topics
Stay up-to-date with our client services.

Feed

25/05/2018
Media giants disrupt market with content sharing deal
In a world where ‘content is king’, the battle among media companies for the rights to screen original entertainment and live sporting events has never been more intense. When broadcast giants BT...
10/03/2017
Franchisor liable for incorrect sales forecasts
In a recent ground-breaking ruling the Dutch Supreme Court has expanded the liability of franchisors for incorrect sales forecasts provided to franchisees. The matter concerned a store owner who entered...
21/05/2014
CMS Commercial Law Group Guide
 Whilst many aspects of the distribution relationship will be similar when distributing within the EU there are important differences to bear in mind and which can be costly to ignore. There are various...
27/06/2011
China Further Streamlines its Franchise Regime
With China starts to re-position itself from the "world's factory" to one of the world's largest consumer markets, international franchisors and branded retailers are moving in the country quickly to...