Distribution, franchise and agency
Some frequently asked questions about distribution, franchise and agency
Absolutely. By putting agreements in writing, parties know where they stand and can always look up their specific rights and obligations. For a supplier, it is also convenient to use standard contracts, so that the same conditions apply to all its distributors, agents and/or franchisees.
Parties entering into a commercial agreement tend to have opposing interests. This also applies to the franchise agreement, where the franchisor, for example, will want to limit the possibilities of termination by the franchisee as much as possible. A franchisee, on the other hand, will want to secure a certain degree of independency and trading freedom. When we review or a draft an agreement, we point out such risks to the entrepreneur. This way, entrepreneurs know exactly where they stand, which allows for an informed decision. Our assessment of their legal position enables entrepreneurs to negotiate and conclude a more advantageous agreement for them.
We always try to resolve disputes without the involvement of a judge. Sending a warning letter is the first step. If the party does not respond or refuses to comply, litigation to enforce compliance is inevitable. In such a case, we advise the entrepreneur on the best procedure to follow (summary proceedings or ’normal’ proceedings) and on the strategy to be followed.
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