by Corneel Vanfleteren
published on Thursday, August 10, 2023 at 7:55 PM •
3 min read
Delhaize wants to adjust the contracts it has with franchisees. That is not well received. Business AM asked Luc Ardies, managing director at Buurtsuper, the Unizo organization of specialty stores and independent supermarkets, for an explanation.
Listen to the full conversation with Luc Ardies here:
Why is this important?
Delhaize announced that it wants to transfer all 128 of its own stores to independent entrepreneurs. It has been battling with the unions about this for months. The model contracts that are now on the table are now also leading to dissatisfaction among independent operators. Ardies explains: “The new model contracts that Delhaize is now proposing are much less favorable for independent entrepreneurs in several respects. They used to have the commercial freedom to approach a number of suppliers for their fresh assortments. In the new contracts they have to pass Delhaize. A piece of the margin remains with Delhaize and profitability becomes less attractive for franchisees.” “The contracts are also becoming less favorable in other areas, such as the non-compete clause. This means that when the term of the contract with Delhaize comes to an end, the franchisee can keep its doors closed for up to a year after the end. He no longer has the right to cash in on that pledge.”
No burdens, but benefits for Delhaize
“The big problem with most franchise contracts is that there is no negotiating freedom whatsoever. A number of clauses are anything but in line with what you could expect from a form of cooperation with independent entrepreneurs. If the commercial property is owned by an independent entrepreneur, that is ultimately also his pension at the end of the ride. With the contracts we see now, that is made impossible.” “If Delhaize opts for independent entrepreneurs, it must leave the independents the commercial freedom to adapt locally to the customer. It must also allow the self-employed person the opportunity to obtain a decent return on investment to be able to create for the investments he has made. It cannot possibly be the case that Delhaize passes the burden on to independent entrepreneurs and keeps all the benefits to itself,” concludes Ardies.
2023-08-10 17:56:02
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