A number of provisions of the Dutch Franchise Act took effect immediately on 1 January 2021. The other provisions must be fully implemented as of 1 January 2023 in the franchise agreements that existed at the time the Act came into force. If a franchise agreement been concluded after January 1, 2021 then the Franchise Act will have direct effect.
Think for example of the goodwill and the post-contractual non-competition clauses. It is compulsory to include regulations regarding goodwill: how is goodwill determined, is there goodwill present and if so, how much, and to what extent can the goodwill be attributed to the franchisor. If there is goodwill that is attributable to the franchisee, the agreement must contain a regulation on how this goodwill will be compensated at the end of the agreement.
The Dutch Franchise Act also determines when a post-contractual non-compete clause is valid. The clause may not apply for more than 1 year after the end of the franchise agreement and must be agreed upon in writing.
