The Dutch franchise code was drafted with the goal of becoming an industry-wide accepted code of conduct. Based on the well-known governance principle of “comply or explain,” the code offered both franchisors and franchisees an opportunity to carefully consider the inclusion of any contract clause that deviates from its standards. Although this system has worked for many years in the Dutch corporate governance model, which regulates the position of various stakeholders in listed entities, franchisors have been reluctant to apply this principle to contracts with their franchise partners.
