Nor does The Netherlands legislation provide for a separate regime for the licence agreement concluded between two undertakings. This means that, here too, the general rules of contract law apply and that the parties are free to conclude agreements. However, the intellectual property rights that are the subject of the license agreement are governed by law. This should therefore be taken into account when drawing up the licence agreement. As a franchisor, you have more control over your franchisee`s branding and business, but you are also subject to more obligations under the Franchise Code of Conduct and you could be sanctioned for a violation. In the case of franchising, the type of activity is often described in detail in a franchise manual (e.g. B how the franchisee assists the franchisee with advice and training and how the franchisee is required to authorize his activity according to the franchise formula). 4. The franchisee retains significant control over how the franchisee operates its business. The code also limits the types of clauses you can include in a franchise agreement.
For example, the code states that you cannot compel a franchisee to resolve disputes through mediation or litigation in a place outside the state or territory where the franchisee operates. If there is an inconsistency between the terms of the franchise agreement and the code, the code applies. A license agreement is a written agreement in which you (the licensor) grant another person or company (the licensee) the right to use something. An intellectual property license is an agreement that grants a licensee the right to use the trademark, logo, trademark, copyright, know-how or any other type of intellectual property that the licensor owns. Licenses can be very specific or broad, which describes the intellectual property that the licensee can use and how they can use it. These licenses are often not exclusive, which means they can be sold to different competing companies operating in the same market. A license agreement allows the use of trademarks, that`s all. In contrast, franchise agreements allow the use of trademarks, additional intellectual property, products, services, user manuals and much more. Netherlands legislation does not provide for a separate regime for the franchise agreement. This means that the general rules of contract law apply. The focus is (more) on the content of the franchise agreement and on case law. However, in many cases, the European Code of Honour for franchising applies.
It establishes standards and rules of conduct that guide cooperation in the event of a franchise. A franchise is a legal relationship in which one party called a ”franchisor”, the other party, known as a ”franchisee”, has the right to develop, establish and duplicate the operations of the franchisee`s business. There are many examples of franchise relationships throughout the U.S. economy and include restaurants like McDonalds, retailers like GNC, and companies in a large number of industries that even encompass the healthcare sector like American family care. 3. When the franchise agreement and franchise formula have been developed and imposed on the franchisee, the franchisee builds a strong (commercial) brand that in itself represents a determined value. . . .