Assessing the risks of terminating a distribution relationship in France.
Ending a distribution relationship in another jurisdiction requires careful consideration of the protections that may apply to the local commercial partner and the potential consequences of termination.
In this matter, a Dutch watch and jewellery brand sought to terminate the distribution of its products by a French retailer. The proposed termination raised questions under French law, particularly regarding the retailer’s possible status as a commercial agent and the rules governing the abrupt termination of established commercial relationships.
DLN members Tessa de Mönnink (the Netherlands), Jessica Ramond and Nicolas Genty (France) worked together to assess the supplier’s position and the potential legal exposure associated with ending the relationship.
By combining the Dutch perspective on the existing commercial arrangement with specialised French expertise, the team provided the supplier with a comprehensive risk assessment to support its decision-making and determine the appropriate approach to termination.
This project illustrates the importance of assessing local legal risks before restructuring or terminating established cross-border distribution relationships.
If you want to benefit from coordinated European expertise in distribution law, get in touch with the DLN.
