The Franchise Development Agreement is essential for businesses pursuing strategic expansion through franchising in the Netherlands. This agreement type is specifically designed to comply with Dutch franchise law, particularly the Dutch Franchise Act (Wet franchise) enacted in 2021, which provides specific protections for franchisees and mandates certain pre-contractual disclosures. The document establishes a framework for systematic franchise expansion, detailing development schedules, territorial rights, and operational requirements. It's typically used when a franchisor wishes to expand their presence in specific Dutch territories through a developer who commits to opening multiple units over a defined period. The agreement includes crucial elements such as development quotas, site selection criteria, training requirements, financial obligations, and support services, while ensuring compliance with Dutch commercial, competition, and franchise laws.

1. Parties: Identification of the franchisor and developer/franchisee, including full legal names and registered addresses

2. Background: Context of the agreement, description of the franchise system, and development opportunity

3. Definitions: Comprehensive definitions of terms used throughout the agreement, including Development Territory, Development Schedule, and Franchise System

4. Grant of Development Rights: Scope of development rights, exclusivity provisions, and territorial restrictions

5. Development Schedule: Timeline and targets for opening new franchise units, including minimum performance requirements

6. Development Fees and Payments: Financial terms including development fees, franchise fees, and payment schedules

7. Obligations of Developer: Developer's responsibilities including site selection, construction, and opening requirements

8. Obligations of Franchisor: Franchisor's support, training, and assistance obligations during development

9. Intellectual Property: Protection and usage of trademarks, trade secrets, and other intellectual property

10. Confidentiality: Confidentiality obligations and protection of proprietary information

11. Term and Renewal: Duration of the development agreement and conditions for renewal

12. Default and Termination: Events of default, termination rights, and consequences of termination

13. Post-Termination Obligations: Obligations of both parties after termination, including non-compete provisions

14. Assignment and Transfer: Rules and restrictions regarding assignment of development rights

15. Governing Law and Dispute Resolution: Choice of law, jurisdiction, and dispute resolution mechanisms