A Dutch Court declares a franchise agreement void because of a clause allowing the franchisor to impose a maximum price for promotional purposes (Market Food Group - “Bakkerijt Stoepje")

Market Food Group B.V. (hereafter “MFG”) is active in bakery products. It has developed a franchising network under the brand “Bakkerij ‘t Stoepje” for open air markets stands in The Netherlands. The franchise agreement contains inter alia the following clauses: The franchisee shall exclusively purchase the contract goods to the franchisor or any wholesalers indicated by the franchisor, to the extent that these goods are produced by the franchisor (single branding). The franchisee is allowed to purchase to third parties goods that are not produced by the franchisor, on the condition that such goods are similar in type and quality to those purchased to the franchisors. The franchisor shall provide the franchisee with a list of proposed selling prices. With regards to the products for

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  • European Commission - DG HR (Brussels)

Quotation

Tristan Baumé, A Dutch Court declares a franchise agreement void because of a clause allowing the franchisor to impose a maximum price for promotional purposes (Market Food Group - “Bakkerijt Stoepje"), 19 January 2005, e-Competitions Franchising, Art. N° 170

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