One of the most popular ways of starting a business in the Netherlands is franchising. The main reasons for setting up this type of business venture is the openness of the Dutch consumers to international brands, but also the developed market and the purchase power of the population.
Foreign investors who want to start a franchise business in the Netherlands have plenty of choices in matter of industries, as well as the option of choosing between a local or international brand.
Below, our Dutch company formation agents explain the process of setting up a franchise business in this country.
The Netherlands does not a have a specific law regulating franchises, however there are laws which govern the relation between the parties entering such a franchise agreement. These parties are the franchisor (the party selling the rights to use the brand’s name) and the franchisee (the party buying the rights to use the brand’s name).
The laws governing franchises are:
In order to set up a franchise in the Netherlands, the franchisee is required to register a company or a sole proprietorship with the Trade Register, according to the Company Law following which the agreement with the franchisor can be concluded.
Setting up a franchise business in the Netherlands comes with rights and obligations for both parties entering the contract.
The franchisor must ensure the franchisee’s access to the technology and equipment used for the activities and the specialized training of the employees, if required. In exchange, the franchisor will be entitled to a certain fee or royalties derived from the use of the franchise.
The Dutch franchisee must respect the terms of the agreement with respect to the location, technology and equipment put at their disposal by the franchisor and must pay the fee or royalties in accordance with the franchise contract.
If you want to start a franchise business and need assistance, do not hesitate to contact our company registration consultants in the Netherlands.