Albert Heijn and franchisees bury the hatchet after a decade

After more than a decade of legal conflict, Albert Heijn and the Dutch Albert Heijn Franchise Association (VAHFR) have reached an agreement. This should structurally improve the relationships between the chain and its more than 130 franchisees.

Mutual trust restored

The legal proceedings, which have been ongoing since 2014, are finally coming to an end. “This agreement provides clarity, strengthens trust, and shows that we want to build together towards the Albert Heijn of tomorrow”, Sonja Boelhouwer, Director of Omnichannel Operations at Albert Heijn, says. She describes franchising as “an essential part of the DNA” of the chain. The VAHFR agrees: Chairman Daniel Luitjens speaks of a “sustainable and balanced future collaboration”.

The legal battle revolved around the distribution of margins, manufacturer bonuses, and compensation for online activities. Franchisees felt financially disadvantaged by central initiatives, which pressured their sales within their market area. With the agreement, that situation is now being rectified.

Compensation for online

In the agreement, both parties now explicitly acknowledge the role of the franchisees within Albert Heijn’s omnichannel strategy, including the use of digital screens and in-store marketing. The agreements include, among other things, a compensation fee for AH Online.

Financial details regarding the compensation have not been made public, but as the independent entrepreneurs operate more than 300 stores in the Netherlands, a compensation the revenue impact of AH Online could potentially become a multi-million cost for Albert Heijn.