The Pre-Contractual Information Document (PID)

Ensuring transparency and informed decision-making in franchise agreements

In the Netherlands, the Pre-Contractual Information Document – commonly referred to as the PID – is a key legal requirement in the franchise onboarding process. It plays a critical role in providing prospective franchisees with full transparency about the opportunity and the obligations involved before they commit.

What is a PID?

The PID is the formal way in which franchisors provide the mandatory pre-contractual information required by Dutch Franchise Law. It must be delivered at least four weeks before the franchise agreement is signed (the stand-still period), ensuring that candidates can make an informed and considered decision.

What does a PID include?

A typical PID contains all essential details about the franchise opportunity, including:

Identification of the franchisor and corporate structure
Description of the franchise concept
Fees, investments and ongoing payments
Financial performance and data (where applicable)
Duration and termination conditions of the agreement
Training and operational support
Territory definitions and exclusivity (if applicable)
Contact details of current franchisees and representatives
Legal and procedural obligations

This document is not a promotional tool — it is a legal instrument designed to protect both parties and promote transparency from the outset.

How should a PID be reviewed?

Candidates are expected to read the PID thoroughly and are advised to seek legal or financial advice where needed. The PID may raise questions about obligations, costs or risks — all of which should be clarified before any agreement is signed. Franchisors must ensure that the information provided is accurate, complete and in line with current legal requirements.

Franchisee rights and legal standards

Under Dutch law, prospective franchisees have the right to receive a PID that is truthful, complete and provided in a timely manner. This document forms the legal foundation of the franchise relationship and is designed to prevent surprises or misunderstandings after the agreement is finalized.

Why it matters

A well-prepared PID shows professionalism, legal compliance and respect for the candidate’s decision process. It helps build trust and supports sustainable partnerships between franchisor and franchisee.

This article was developed in collaboration with Koelewijn & Partners, franchise law specialists in the Netherlands.