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Upcoming Trade Shows in Netherlands for Franchising

The franchising industry in the Netherlands is flourishing and has made substantial contributions to the economy. For one, it has generated an annual revenue exceeding €55 billion and is responsible for the employment of 375,000 people across 34,000 franchise locations. Franchising has cemented its role as a key economic driver. The recent implementation of the Dutch Franchise Law in 2021, has further refined the framework within which franchisors and franchisees operate. A pivotal aspect of the Dutch Franchise Law is the emphasis on fortifying the franchisee’s position before the contract is signed. This phase mandates comprehensive information sharing, ensuring that franchisees are well-informed about the financial and operational aspects of the franchise. Both parties are required to disclose relevant financial information, including payment details and financial projections for the proposed location. This transparency allows potential franchisees to make informed decisions and evaluate the risks involved. A noteworthy feature of this phase is the four-week ‘stand-still’ period. During this time, neither party can finalize the agreement or make any additional demands. This pause provides a crucial window for both franchisors and franchisees to reflect on the terms, conduct further research, and seek expert advice. This measure aims to prevent hasty decisions and foster a more thoughtful and balanced agreement process. Once the franchise agreement is in place, the Dutch Franchise Law mandates a duty of care from both parties. Franchisors are required to provide ongoing commercial and technical support necessary for the franchisee’s success. This includes addressing any concerns raised by franchisees and engaging in constructive discussions to resolve issues. The law ensures that franchisors cannot ignore the needs of their franchisees. The new law opens a new chapter for the franchising industry in Netherlands to prosper even more in the future.

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