The Dutch Court of First Instance of Arnhem holds, in interlocutory proceedings, that a non-compete clause concluded in a franchise agreement, which was not exempted under the vertical agreements and concerted practices Regulation is enforceable (Bruna)

In March 1999, a franchise agreement was concluded for a period of five years between Bruna, the franchisor, and the defendant in this case, the franchisee. After renewal in 2004, this agreement was prolonged until 1 August 2009. The defendant was given the right to use the Bruna system for the exploitation of commercial premises. This franchise agreement contained a non-compete clause according to which the franchisee would abstain from any competing activities for a period of one year following the franchise agreement. The franchise agreement was ended on the 1st of August 2009. As of that date, the defendant, who exploited a “Bruna shop”, started to exploit on the same premises a bookshop of the chain “Plantage Booksandmore”. Bruna initiated interlocutory proceedings before the

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Authors

  • European Commission - DG HR (Brussels)
  • European Court of Justice (Luxembourg)

Quotation

Tristan Baumé, Sally Janssen, The Dutch Court of First Instance of Arnhem holds, in interlocutory proceedings, that a non-compete clause concluded in a franchise agreement, which was not exempted under the vertical agreements and concerted practices Regulation is enforceable (Bruna), 5 October 2009, e-Competitions October 2009, Art. N° 30038

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