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Franchise, Distribution and Agency in Europe

Publication date: 25 October 2018
A good way to enter the Dutch market is to appoint a local European distributor, agent or franchisee. What are the advantages? Reinier W.L. Russell, LL.M., managing partner of Russell Advocaten explains in this article for The Primerus Paradigm.

There are several options to expand your business in the Netherlands or Europe. For example, you can incorporate a Dutch legal entity (see our article in The Primerus Paradigm, Fall 2016, for more information). Another way to enter the Dutch market is to appoint a local European distributor, agent or franchisee. They have the knowledge of the local market and customs that could jump-start your business. It will allow manufacturers to do what they are good at: producing products and upholding the good reputation of the brand. Especially, if you want to do business abroad, the local knowledge of agents, distributors and franchisees can be beneficial.

In this article, we will discuss the differences between and advantages of distribution, franchise and agency in the Netherlands, a country providing access to all European markets. We will deal with important issues, such as the termination of the contracts and liability resulting from these contracts. We will also take a closer look at several hot topics, including pricing arrangements and online sales (geo-blocking).

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