What is a franchise agreement under Dutch law?

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

A franchise agreement under Dutch law is governed by the Wet franchise (articles 7:911 to 7:922 BW), in force since 1 January 2021. The Act imposes pre-contractual information obligations, a mandatory four-week standstill period before signing, good-faith duties during the relationship, consent requirements for material formula changes, and limits on post-contractual non-competes.

The Wet franchise applies to any franchise agreement where the franchisee operates in the Netherlands, regardless of the nationality of the franchisor or the governing law chosen in the contract (article 7:922 BW). This mandatory scope means that foreign franchisors entering the Dutch market must adapt their standard template to comply with the Dutch Act.

Why it matters for international businesses

For international franchisors, the pre-contractual disclosure obligation and the four-week standstill period are the most operationally significant changes, because they extend the onboarding timeline and cannot be waived.