What is the Dutch Franchise Act (Wet franchise)?

Dutch term: Wet franchise | Legal basis: Articles 7:911-7:922 BW

The Dutch Franchise Act (Wet franchise, articles 7:911 to 7:922 BW) regulates franchise relationships in the Netherlands since 1 January 2021. It imposes mandatory obligations on franchisors including pre-contractual information disclosure, a four-week standstill period before signing, good-faith duties, consent requirements for material formula changes, and restrictions on post-contractual non-competes.

The Act applies to any franchise where the franchisee operates in the Netherlands, regardless of the franchisor's nationality or the governing law in the contract (article 7:922 BW). Post-contractual non-competes are limited to one year and must be in writing, limited to the franchisee's territory, and necessary to protect transferred know-how.

Why it matters for international businesses

For foreign franchisors expanding into the Netherlands, the Wet franchise requires adaptation of any standard international template. The pre-contractual disclosure and standstill obligations cannot be contracted away.